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  1. SAP Glossary
  2. Purchasing
  3. Spend Variance


What is Spend Variance in SAP (MM-PUR - Purchasing)?


SAP Term: Spend Variance

  • Component: MM-PUR

  • Component Name: Purchasing

  • Description: This KPI helps to determine the sum of the purchase order value, goods receipt value, and invoice per supplier or material.


Smart SAP Assistant

  • Key Concepts: 
    Spend Variance is a term used in SAP MM-PUR Purchasing to refer to the difference between the budgeted amount of money allocated for a purchase and the actual amount spent. It is calculated by subtracting the budgeted amount from the actual amount spent. 
    
    How to use it: 
    In SAP MM-PUR Purchasing, Spend Variance can be used to track and analyze spending patterns. It can be used to identify areas where spending is higher than expected, or areas where spending is lower than expected. This information can then be used to make informed decisions about future purchases. 
    
    Tips & Tricks: 
    When tracking Spend Variance, it is important to consider other factors such as market conditions, supplier availability, and delivery times. These factors can all affect the actual amount spent on a purchase and should be taken into account when analyzing Spend Variance. 
    
    Related Information: 
    Spend Variance is closely related to other terms such as Budget Variance and Cost Variance. Budget Variance refers to the difference between the budgeted amount of money allocated for a purchase and the actual amount of money received from the supplier. Cost Variance refers to the difference between the budgeted cost of a purchase and the actual cost of a purchase.
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