For Material Receipt, which of the following is the best practice adoption based on Procurement Cost?

Utilizing evaluated receipt settlement is an effective best practice in procurement as it streamlines the payment process for received materials while taking advantage of early payment discounts. This approach allows organizations to match the goods received with purchase order details automatically, reducing the need for manual invoice handling. By leveraging early payment discounts, companies can improve their cash flow and lower overall procurement costs.

Evaluated receipt settlement eliminates discrepancies that can arise from traditional invoice processing, ensuring that payments are made promptly based on the agreed terms. This not only fosters better supplier relationships but also maximizes financial efficiency. Thus, focusing on this method demonstrates a strategic way to manage procurement costs effectively.