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

SAP Term: limit item

• Component: SRM

• Component Name: Supplier Relationship Management

• Description: An ordered item that is assigned an upper value 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 the maximum amount that can be spent on it. Once the limit item has been created, it can be assigned to a specific supplier or group of suppliers. The limit item will then be applied to all purchases made from that supplier or group of suppliers. 
  
  Tips & Tricks: 
  When creating a limit item, it is important to make sure that the maximum amount is realistic and achievable. This will help to ensure that spending remains within budget and that the company does not overspend on any particular item or service. Additionally, it is important to regularly review and update limit items as needed in order to keep spending within budget. 
  
  Related Information: 
  For more information about limit items in SAP SRM, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SRM/7.5/en-US.