What is factored-cost bidding in SAP SRM-LA - Live Auction?

SAP Term: factored-cost bidding

• Component: SRM-LA

• Component Name: Live Auction

• Description: Feature for live auctions that enables the purchaser to assign adders and multipiers to bidders per auction line item in order to give them a competitive advantage or disadvantage. These assignments allow the purchaser to take into account factors other than price when ranking bids. For example, quality record, prior history, location, and so forth.

Smart SAP Assistant

• Key Concepts: 
  Factored-cost bidding is a feature of SAP SRM-LA Live Auction that allows buyers to bid on items with a cost factor. This cost factor is used to calculate the total cost of the item, including taxes, shipping, and other fees. The cost factor can be adjusted to reflect the buyer's desired total cost. 
  
  How to use it: 
  In order to use factored-cost bidding, buyers must first select an item they wish to bid on. Once the item is selected, buyers can enter their desired cost factor in the bidding window. The system will then calculate the total cost of the item based on the cost factor and any applicable taxes, shipping, and other fees. 
  
  Tips & Tricks: 
  When using factored-cost bidding, it is important to remember that the cost factor will be applied to all applicable taxes, shipping, and other fees. Therefore, it is important to consider these additional costs when setting the cost factor. Additionally, buyers should be aware that the total cost of the item may be higher than expected if the cost factor is set too low. 
  
  Related Information: 
  For more information about factored-cost bidding in SAP SRM-LA Live Auction, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SRM_LA_LIVE_AUCTION/7.5/en-US.