Total Measured Procurement Spend (TMPS) forms the basis of the calculation measuring an organisation's Preferential Procurement spend and can be a complex calculation. The formula is (A – B = TMPS) broken down as (Not Limited to):
A | Cost of sales- adjusted for opening and closing stock;
Operating expenses;
Other expenses; and
Capital Expenditure
B | Salaries, wages, remunerations and emoluments;
Empowerment-related procurement;
Supplier-specific exclusions:
o Taxes and levies;
o Imports, providing they meet the criteria;
o Organ of state / public entity that enjoys a statutory/regulated monopoly in the supply of such goods or services;
o Pass through third-party procurement;
Accounting-related exclusions:
o Depreciation and amortisation;
o Fair value adjustments; and
o Forex transactions.
Enterprise & Supplier Development Services are available to assist members with understanding the TMPS calculation.