MM03 - Master Data in Purchasing & Contract

November , 2000

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Schedule

Topic One: Master Data in Purchasing

Purchasing Information Records
Conditions Source List

Topic Two: Contract

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Master Data in Purchasing

Material master Vendor master Purchasing info records Conditions Source List Quota Arrangement

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Schedule

Topic : Master Data in Purchasing

Purchasing Information Records
Conditions Source List

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General Concepts
l The Purchasing Info Record belongs to the master data for purchasing. It holds information for a specific . material and vendor combination Info records allow the definition and maintenance of:
n n n n

Current and future prices and conditions (e.g., freight, discounts)

Delivery data (e.g., delivery lead time, tolerance limits) Vendor data Text

Data maintained in info records appears as default values in purchasing documents (e.g., purchase orders, contracts) during creation.

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Purchasing Info Records

Piece %
Conditions

USD
Info record Vendor A Info record

Material

Stock material M1

Info record
Consumable material M2 Info record

Vendor B

Info record

Service S1

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Data in the Purchasing Info Record

General data
Vendor data Origin data Order unit

Prices and Conditions

Gross price Discount Freight Duty, etc.

Control data
Delivery time Minimum quantity Tolerances

Texts
Purchase order text Info record note

Statistics
Price history Ordering statistics Change history

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Organizational Elements of Info Record

Info records can exist for:
Info Record #5300000816
Vendor: 1234 Material: Bolt A21 Purch Org: 3000

Purchasing Organizations Purchasing Organization and Plant (if allowed)

Info Record #5300000816

Vendor: 1234 Material: Bolt A21 Purch Org: Plant: 3000 3001

Pricing Conditions
Unit Price $6.25/Box Freight 2% Discount 4% Last PO #4500006398

Pricing Conditions
Unit Price $6.00/Box Freight 2% Discount 5% Last PO #4500019324

The R/3 System will search for an info record for a purchasing organization and plant combination first. If one does not exist, it will look for an info record for a purchasing organization only.

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Maintaining an Info Record

Quotation
10

Purchase Order

or

10 20 30

or

Outline Agreement
10 20 30

Manual

or

20
30

Vendor #1234

Info record
Vendor: 1234 Material: Bolt A21 Purch Org: 3000 Pricing Conditions
Unit Price $6.25/Box Freight 2% Discount 4% Last PO #4500006398

Material Bolt A21

Info records can be automatically created or updated from a quotation, purchase order, or outline agreement. They can also be manually created and maintained.

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Automatic Update of Info Record

Info records are updated differently, depending on the update source: l l Quotations update info record pricing conditions. Purchase orders and contracts update the last purchasing document number.

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Info Records and Pricing

Purchasing documents will automatically retrieve pricing from info records in one of two ways: Pricing conditions will be used if they were l Conditions: created for an info record either manually or through quotation maintenance. If an info record does not contain l Last purchase order: pricing conditions, the system reads the last purchasing document number from the info record and obtains the price from the last purchasing document.

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Purchasing Info Records Summary

The purchasing info record contains information on a special vendor relationship
Info records can be created or updated manually or automatically when you maintain purchasing documents

When info records are updated by purchase orders the last purchase order , rather than conditions , is marked in the info record
On the other hand - if the info record does not contain conditions that have been entered manually - the price of the purchase order item is determined from the previous purchase order Data maintained in info records is displayed as default values when you create purchasing documents An info record can be valid for only one plant or for all plants belonging to a purchasing organization

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Exercise for Purchasing Information Records

Now its time for you to do: MM03 - Exercise 7

40 minutes

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Schedule

Topic One: Master Data in Purchasing

Purchasing Information Records
Conditions Source List

Topic Two: Contract

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Info Records and Pricing

Purchasing documents will automatically retrieve pricing from info records in one of two ways: Pricing conditions will be used if they were l Conditions: created for an info record either manually or through quotation maintenance. If an info record does not contain l Last purchase order: pricing conditions, the system reads the last purchasing document number from the info record and obtains the price from the last purchasing document.

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Pricing Conditions in Procurement

Pricing Conditions: l Determine the effective price of a material in a purchase order, including unit price, discounts, surcharges, freight, and customs fees. l Can be maintained in:
n

Info records
Contracts Quotations

Conditions
Code Description PB00 FRA1 RA00 ZOB1 Gross Price Freight Discount on Net Customs $/Unit Amount $10.00 5.0% 8.0% $3.00

n n
n

Purchase orders

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Conditions
Conditions

Prices

Discounts/ surcharges
Freight Discount Customs Duty 2% 4% 5%

Price/Uom

UNI 6.25/ST PBXX

Condition Type

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Condition Type
l Condition types are pricing factors that are used to enter pricing in purchasing documents. Common condition types include:
n n n n

Freight Discounts Surcharges Customs

Companies can define their own condition types to satisfy business requirements.

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Pricing

Pricing procedure

Condition type

Gross price Discount % Net price: Fixed freight charge + Effective price:

PB00 RA01 FRA1

Calculation type Scale basis Price/quantity scale

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Master Conditions
l l Master conditions are a central repository of pricing for purchase orders. Master conditions can be used in three ways:
n

Master conditions in a contract (also known as blanket Contract: order or outline agreement) apply to all release orders issued against the contract. Info Record: Master conditions in an info record apply to all purchase orders for the specific material and vendor combination contained in the info record.

Extended Conditions: : These master conditions apply when specific criteria are met in a purchase order.

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Master Conditions
Quotation

Purchase
Order

Conditions
Code Description PB00 FRA1 RA00 Gross Price Freight Discount on Net Amount $10.00 5.0% 8.0% $3.00
Info Records

ZOB1 Customs $/Unit

Outline Agreement

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Extended Conditions
l
Extended conditions are a flexible way of setting vendor pricing. They will be included in the price calculation of a purchase order if the PO meets certain criteria. Extended conditions are more flexible than master conditions in contracts or info records, because you can define the criteria that must be met before they are applied.
n

Example: Vendor 123 offers a 10% discount for all materials purchased during the month of May.

Extended conditions can be established for vendor, vendor sub-range, condition group, material type, incoterms, or invoicing party.

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SAP AG

Exercise for Conditions

Now its time for you to do: MM03 - Exercise 8

30 minutes

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Schedule

Topic Two: Master Data in Purchasing

Purchasing Information Records
Conditions Source List

Topic Two: Outline Agreement

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General Concept
l Source lists specify the sources of supply for a material within a plant over set periods of time. l Source lists can be maintained:
n n n n n

Manually From an existing source list From an outline agreement From a purchasing information record Automatically

l Sources can be marked fixed, preferred, or blocked (temporarily or permanently) during source list maintenance.

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Source List

01/01/96 - 06/30/96

07/01/96 - 12/31/96

Source list
Vendor 1 Vendor 2 Vendor 3 allowed allowed allowed Vendor 1 fixed

Material M1 Plant 0001

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Mandatory Source List

Source list

Material Master Data

Material WIRE-01 A1500-01

Purchase Requisition
Material Vendor WIRE-01 A1500-01

Material Record
Material Plant WIRE-01 3000

Vendor

x Source list
u

If the Source list flag is set in the material master, purchasing cannot occur until a source list exists for the material. Setting the Source list flag during configuration for an entire plant requires that source lists exist for all materials of that plant before purchasing can occur.

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Processing Source list

Manual
Source list

Outline Agreement

Info Record

Automatic

u u

Source list

u u

Material M1 Plant 3000

Source lists display: Material Plant Specific vendor, outline agreement, or plant Validity periods

Default source of supply in requisition via source determination Check in purchase order + requisition for admissibility
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Maintaining Source List

Outline Agreement
Material Vendor WIRE-01 A1500-01

Source list

Info x Maintain source list Record

Material Vendor WIRE-01 A1500-01

Material: Vendor: Valid from: Valid to: Outline Agreement

WIRE-01 A1500-01 04/03/1995 09/30/1996 460000018

x Maintain source list

Source lists can easily be maintained while maintaining info records and/or outline agreements.

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Generating Source List Automatically

Info Record
Material Vendor WIRE-01 A1500-01
Source list

Source List #3 Source List #1

Material Vendor Valid from: Valid to: Outline Agreement WIRE-01 A1500-01 04/03/1995 09/30/1996 460000018

Outline Agreement
Material Vendor WIRE-01 A1500-01

u Source lists can be created or updated automatically by selecting specified ranges of info records and outline agreements.

u Running a simulation allows the user to review the expected results before making an actual update to source list records.
u Original source list statuses can be restored even after an update.

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Source Determination Summary

Source of supply are administered using the source Source lists is used in source determination. During this process , a source may be automatically assigned to an item of a purchase

requisition
The source list is used not only for the purpose of source determination but also to check the admissibility of possible sources A source determination process can also be carried out for materials that do not have a master record

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Exercise for Source List

Now its time for you to do: MM02 - Exercise 9

30 minutes

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Schedule

Topic One: Master Data in Purchasing

Purchasing Information Records
Conditions Source List

Topic Two: Contract

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Congratulations !
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