Subscribe

RSS Feed (xml)

Powered By

Skin Design:
Free Blogger Skins

Powered by Blogger

Centrally Agreed Contract using SAP MM Outline Purchase Agreements With Vendors

Use

It is possible to create contracts that do not relate to just one particular receiving plant. The plant is specified when a release order is subsequently created, not during the creation of the contract.

An enterprise with a central purchasing department (usually a reference purchasing organization) buying materials for several plants can agree a high-level contract which may apply to a vendor's entire corporate group and which can be utilized by other purchasing organizations within the enterprise. The use of such centrally agreed contracts usually results in more favorable conditions of purchase. (Outside SAP, such contracts may also be referred to as "national", "group", or "corporate" contracts.)

Plant Conditions

With the Plant conditions function, the centrally agreed contract allows prices and conditions to be determined individually for each receiving plant. One advantage of this is that differences in transport costs due to varying distances between vendor and receiving plant locations can be taken into account.

Partner Functionality

Release orders are used to order (release) materials against a centrally agreed contract. The individual release orders can be placed with different sources of supply (that is, individual vendors, or supplying companies) belonging to the principal vendor's corporate group.
This is made possible by the partner functionality. You can assign several individual vendors (that is, units of a principal vendor's corporate group) to a contract. These vendors can assume a variety of roles (for example, ordering address, supplier of goods, invoicing party), and you can assign different roles to the levels "purchasing organization", "vendor sub-range", and "plant."

The basis for the assignment of a contract release order to a certain ordering address is the plant to which the materials are to be delivered or the vendor sub-range to which the material belongs.

The partners can be defined in the vendor master record for the vendor corporate group or maintained individually in the contract. In many cases, the assignment of vendor to plant will be a 1:1 relationship. However, it is also possible for one receiving plant to be supplied by different vendors.


The vendor corporate group Steel Inc. comprises six individual vendors that supply five receiving plants located in various regions. The assignments of sources to plant are defined in the master record of the vendor corporate group as follows: vendor 1 supplies plant 1 only; vendor 2 supplies plant 2 only; vendors 3 - 6 jointly supply plants 3, 4 and 5.

When a buyer wants to issue a release order against the centrally agreed contract with Steel Inc., he or she enters the key for the plant for which materials are to be procured. If the buyer enters plant 2, the contract release order is automatically issued to vendor 2. If he or she enters plant 4, the system determines the vendors 3, 4, and 5 on the basis of the vendor-plant assignments in the vendor master record of Steel Inc. The buyer chooses the vendor who is to receive the release order from the suggestions put forward by the system.

How to maintain partners in the vendor master record and in contracts is explained under Maintaining Vendor Master Records.

Posted by Anonymous at 10:10 AM
Labels:

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)
Google
 

Subscribe Here

AddThis Feed Button

Content