In the SAP Fieldglass Discount method, the Managed Service Provider (MSP) fee is calculated as a percentage of the Supplier Bill Rate. The buyer is billed the full Supplier Bill Rate. The MSP fee is then deducted from this amount before the payment is remitted to the supplier. Therefore, the fee is effectively subtracted from the Supplier Bill Rate to determine the supplier's net proceeds, while the buyer's cost remains the Supplier Bill Rate.

A. The Fee is added to the Buyer Bill Rate: This is incorrect. The Buyer Bill Rate is the final rate; a fee is not added on top of the final amount. This describes an illogical financial process.

B. The Fee is subtracted from the Buyer Bill Rate: This is misleading. In the Discount model, the Buyer Bill Rate and the Supplier Bill Rate are the same. The fee is an internal deduction from the supplier's payment.

C. The Fee is subtracted from the Pay Rate: This is incorrect. The MSP fee is a commercial arrangement between the buyer/MSP and the supplier, not a deduction from the contingent worker's direct pay rate.

1. SAP Fieldglass TFG61 Courseware: TFG61ENCol19 - SAP Fieldglass: Services and External Workforce Management

Unit 5: Financial Data

Lesson: Rate Structures and Fees. This section details the three primary fee models: Markup

Discount

and Fixed. It explicitly states that the Discount model calculates the fee based on the Supplier Bill Rate and deducts it from the supplier's payment.

2. SAP Help Portal - SAP Fieldglass: Configuration Guide for Rate Structures. In the section "Fee Structures

" the Discount method is defined as: "A fee calculated as a percentage of the supplier rate. The fee is deducted from the amount paid to the supplier." This confirms the fee is subtracted from the supplier's billed rate.