Which feature in SAP S/4HANA allows for the automatic determination of potential sources of supply during procurement?

Prepare for the SAP S/4HANA Cloud Private Edition, Sourcing and Procurement Test with interactive flashcards and multiple choice questions, each complete with explanations. Ace your certification exam!

The feature that allows for the automatic determination of potential sources of supply during procurement is Source Determination. This functionality streamlines the procurement process by automating the identification of suppliers that can fulfill a purchase requirement based on predefined criteria, such as availability, pricing, and terms.

When a procurement user creates a purchase requisition, the system analyzes active sources of supply—considering aspects like contracts, preferred supplier lists, and historical data—to recommend the most suitable suppliers. This not only speeds up the procurement cycle but also enhances sourcing efficiency and cost-effectiveness by ensuring that the best available option is presented for consideration.

As for the other options, while Purchase Order Management involves the creation and processing of orders, it does not primarily focus on identifying sources of supply. Supplier Evaluation pertains to assessing and ranking suppliers based on their performance and reliability but does not automate the sourcing process itself. Contract Management deals with managing and tracking supplier agreements but does not automatically identify potential sources for new procurement needs. Thus, Source Determination has a unique and essential role in ensuring effective sourcing through its automation capabilities.

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