What is 'actual spending value' in SAP SRM-CM - SRM Category Management?

actual spending value - Overview

• Component: SRM-CM

• Component Name: SRM Category Management

• Description: The value spent procuring a good or service.

actual spending value - Details

• 
  Key Concepts: 
  Actual Spending Value (ASV) is a term used in SAP SRM Category Management. It is the total amount of money spent on a particular category of goods or services over a given period of time. This value is used to measure the performance of a category and to compare it to other categories. 
  
  How to use it: 
  The Actual Spending Value (ASV) can be used to measure the performance of a category and to compare it to other categories. It can also be used to identify areas where cost savings can be achieved. The ASV can be calculated by taking the total amount spent on a particular category over a given period of time and dividing it by the total number of items purchased in that category. 
  
  Tips & Tricks: 
  When calculating the Actual Spending Value (ASV), it is important to consider the quality of the items purchased as well as the quantity. Quality items may cost more but may also last longer, resulting in lower overall costs in the long run. 
  
  Related Information: 
  The Actual Spending Value (ASV) is closely related to other metrics such as Total Cost of Ownership (TCO) and Return on Investment (ROI). These metrics can be used together to gain a better understanding of how a particular category is performing and where cost savings can be achieved.