What is limit item in SAP SRD-SRM - SRM-Supplier Relationship Management?

SAP Term: limit item

• Component: SRD-SRM

• Component Name: SRM-Supplier Relationship Management

• Description: An ordered item that is assigned an upper value limit rather than a price. For example, if a service needs to be performed but the exact price is unknown, you can order it as a limit item and assign an upper limit to the amount that it can cost.

Smart SAP Assistant

• Key Concepts: 
  A limit item is a feature of SAP Supplier Relationship Management (SRM) that allows users to set limits on the amount of money that can be spent on a particular item or service. This helps to ensure that spending is kept within budget and that the company is not overspending on any particular item or service. 
  
  How to Use It: 
  To use limit items, users must first create a limit item in the SRM system. This can be done by entering the item name, description, and budget amount. Once the limit item has been created, users can then assign it to a specific supplier or group of suppliers. This will ensure that the supplier is only able to spend up to the specified budget amount for that particular item or service. 
  
  Tips & Tricks: 
  When creating limit items, it is important to ensure that the budget amount is realistic and achievable. It is also important to regularly review and update limit items as needed in order to ensure that spending remains within budget. 
  
  Related Information: 
  For more information about limit items in SAP SRM, please refer to the SAP Help Portal or contact your local SAP representative.