What is contract price variance in SAP SRD-SRM-SC - SRM-Sourcing and Contracting?

SAP Term: contract price variance

• Component: SRD-SRM-SC

• Component Name: SRM-Sourcing and Contracting

• Description: A difference between the binding price stated on a contract and the price stated on a goods and services receipt or invoice for products ordered based on that contract.

Smart SAP Assistant

• Key Concepts: 
  Contract Price Variance (CPV) is a term used in SAP SRM-Sourcing and Contracting to refer to the difference between the expected and actual price of a contract. CPV is calculated by subtracting the expected price from the actual price of the contract. 
  
  How to use it: 
  CPV can be used to measure the performance of a contract and identify any discrepancies between the expected and actual prices. It can also be used to identify any potential savings that could be made by renegotiating the contract. 
  
  Tips & Tricks: 
  When calculating CPV, it is important to take into account any discounts or other incentives that may have been negotiated as part of the contract. This will ensure that the CPV calculation is accurate and reflects any potential savings that could be made. 
  
  Related Information: 
  CPV is closely related to other terms such as Price Variance (PV) and Price Difference (PD). PV is the difference between the expected and actual prices of a single item, while PD is the difference between two different items.