Total Cost / Total Price Functionality

[Former Member]

Hi Team

Keen to understand the functionality behind Total Cost / Total Price functionality in sap sourcing.

Any information you could provide would be great.

Many thanks,

Leon

[Former Member]

Hi

Let me try to explain this with a simple example

Total Price: Sum price for all line items quoted by the suppliers in their responses

Total Cost : Total Price +Cost Overhead associated with supplier. For e.g. lets say you have a condition which would add significant overhead cost to the price quoted by supplier (e.g. new supplier vs old supplier scenario). you can give advantage with the help of a query asked to supplier wherein supplier response would contribute to the total cost burden.

hope this helps

Regards

Mudit Saini

Edited by: Mudit_UCB on Nov 29, 2011 11:36 AM

[Former Member]

Hi,

In addition to what Mudit said, here are two more points to know:

1 When creating a question of type "cost/price" based, you would see two check boxes.

- Add to the total cost

- Add to the total price..

if you check add to the total price, it would be added to the Price & simillarly, when you check add to the total cost it would add to the cost...

2. Supplier weighting in the supplier tab.

- you can add fixed cost to supplier or give an advantage to once supplier over the other

would suggest to play around the cost based questions, with few line items and supplier weights to understand this feature better..

good luck

Baski