Name: Adding Terms to Events Using Price Breakdown in SAP Ariba Sourcing
Uploaded: 2023-10-19
Duration: 207 s
Description: Learn how to add terms to an RFP using price breakdown in SAP Ariba Sourcing. Understand the benefits of price breakdown and how it helps in comparing supplier prices.

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<div><div><div>Learn how to add terms to an RFP using price breakdown in SAP Ariba Sourcing. Understand the benefits of price breakdown and how it helps in comparing supplier prices.</div></div></div>

Adding Terms to Events Using Price Breakdown in SAP Ariba Sourcing

Today's video will demonstrate how sourcing project creators in SAP Ariba Sourcing can add terms to an RFP that is using price breakdown. When a project owner creates an event with the event type set to RFP, there will be three standard RFP templates out of the box. A simplified RFP template, an RFP template with total cost, and an RFP template with price breakdown. The total cost and price breakdown templates are pre-enabled with settings to add terms within line items to gather more information outside of a simple price. Terms are created within line items for factors that may have a cost impact. The system provides a standard set of cost terms such as price, quantity, shipping terms, discount, etc but you can create custom terms of your own. The key difference when setting up terms within these two templates is that the total cost template does not require a term to be included within the formula. There is an include in cost field that is required when using the price breakdown template, but it is optional in the total cost template. Simply put, the price breakdown template will give the project owner an error message when using this template if they do not have a term that is factoring into the total cost. If a project owner does not create a new term that is not summed into the cost, they will see an error message preventing them from creating their event. So why use price breakdown? Well, it allows you to understand how your suppliers arrive at their prices. It lets you compare suppliers' prices more critically, and helps decide if a supplier's price is reasonable. When building a price breakdown RFP, you must first select the template designed for the price breakdown. We will then add a line item, and then we will add a cost term to make up the line item. Again, the key thing here is that I must specify a value for the include in cost field if I want to get rid of the error message on our line item. So let's say I am buying a laptop bundle. If I want to set up my line item with a model of that laptop, I can then add the subcomponents and add-ons, like a monitor, mouse, keyboard, docking station, and other costs like markup, shipping, setup charges, and factor those into the cost of the package to see the prices for each component. In the system, that would look like one item with new terms, and I would set each term as adders to the include in cost field, since they are all terms that will add into the total cost of the line item, which is going to be my full laptop package. Again, the intention of price breakdown is to itemize the accessories and costs of the full package by forcing where the supplier can respond with their prices. Then at the supplier level, we will see the participant will have to enter their prices at the term level for each component, and then we will see the cost roll up into the total amount. For additional information about creating terms within line items, please consult our product documentation.