Spend Management Blogs by SAP
Stay current on SAP Ariba for direct and indirect spend, SAP Fieldglass for workforce management, and SAP Concur for travel and expense with blog posts by SAP.
cancel
Showing results for 
Search instead for 
Did you mean: 
AndreasMuno
Product and Topic Expert
Product and Topic Expert
0 Kudos

Welcome to an SAP Procurement microblog:

An option line item in SAP procurement for public sector is comparable to a future on the financial markets. In both occasions buyers try to minimize their risk or take advantage of their market position in locking in a price today that might not be available in the future. Let's fast forward to that future: Now if market prices turn out to be above the ones they locked in in the past, buyers execute their options. If, on the flip side, market prices had decreased, buyers are better off to forgo their right to execute options and to buy on the market instead.

Option line items are one of the many reasons why professional procurement organizations run better with SAP.
Learn more about SAP procurement on SCN at http://scn.sap.com/community/srm.