Which function is performed by Source Determination in SAP S/4HANA?

Source Determination in SAP S/4HANA is focused on identifying the most suitable sources for procurement based on specific criteria, with a key element being the determination of the best price from available suppliers. This function involves assessing the prices offered by different suppliers and selecting the one that provides the optimal cost for the goods or services needed. Through this process, SAP S/4HANA ensures that procurement activities are cost-effective and help organizations maximize their purchasing power.

In the context of source determination, the ability to evaluate supplier performance, identify available stock, and analyze market trends represents additional functions and functionalities that support the overall procurement process, but they do not specifically capture the primary role of source determination. The direct aim of this function is to facilitate better pricing strategies and supplier selection that align with the organization’s procurement goals. Thus, determining the best price stands out as the definitive purpose of source determination in SAP S/4HANA.