MM03 - Master Data in Purchasing & Contract November , 2000

Schedule Topic One: Master Data in Purchasing Topic Two: Contract Purchasing Information Records Conditions Source List Topic Two: Contract

Master Data in Purchasing Material master Vendor master Purchasing info records Conditions Source List Quota Arrangement You can maintain data for info records, source list, quota arrangements, vendors, conditions and output (messages) from the purchasing menu and material data from the material master menu.

Schedule Topic : Master Data in Purchasing Purchasing Information Records Conditions Source List

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 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.

Purchasing Info Records Vendor A Material Piece % Conditions USD Info record Vendor B Stock material M1 Consumable material M2 Service S1 Data which describes a supply relationship is stored in the purchasing information record. Data from the info record appears as default data when you record purchasing transactions. You can run analyses using data stored in info records, for example: Which vendors supply a certain material? Which materials does a particular vendor supply? Info records can be created manually or automatically. A distinction is made between info records with a material master record (stock material info records) and info records without a material master record (info records for non-stock material).

Data in the Purchasing Info Record Prices and Conditions Gross price Discount Freight Duty, etc. Texts Purchase order text Info record note Control data Delivery time Minimum quantity Tolerances General data Vendor data Origin data Order unit Statistics Price history Ordering statistics Change history In addition to general data on the supply relationship, an info record also contains data which can be maintained for each purchasing organization and plant.

Organizational Elements of Info Record Info records can exist for: Vendor: 1234 Material: Bolt A21 Purch Org: 3000 Pricing Conditions Unit Price $6.25/Box Freight 2% Discount 4% Last PO #4500006398 l Purchasing Organizations Organization and Plant (if allowed) Plant: 3001 Unit Price $6.00/Box Discount 5% Last PO #4500019324 Info Record #5300000816 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 only.

Maintaining an Info Record Vendor: 1234 Material: Bolt A21 Purch Org: 3000 Pricing Conditions Unit Price $6.25/Box Freight 2% Discount 4% Last PO #4500006398 Info record Quotation 10 20 30 Info records can be automatically created or updated from a quotation, purchase order, or outline agreement. They can also be manually created and maintained. Manual Outline Agreement or Vendor #1234 Purchase Order Material Bolt A21 You can set an indicator that will cause the automatic maintenance of a purchasing info record (and the PO history) to be initiated when a purchasing document is created.

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

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

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

Exercise for Purchasing Information Records Now it’s time for you to do: MM03 - Exercise 7 40 minutes

Schedule Topic One: Master Data in Purchasing Topic Two: Contract Purchasing Information Records Conditions Source List Topic Two: Contract

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

Pricing Conditions in Procurement l Determine the effective price of a material in a purchase order, including unit price, discounts, surcharges, freight, and customs fees. Can be maintained in: n Info records Contracts Quotations Purchase orders Conditions Code Description Amount PB00 Gross Price $10.00 FRA1 Freight 5.0% RA00 Discount on Net 8.0% ZOB1 Customs $/Unit $3.00

Conditions Conditions Discounts/ Prices surcharges Price/Uom UNI 6.25/ST Condition Type PBXX Freight 2% Discount 4% Customs Duty 5% Conditions .

Condition Type l Condition types are pricing factors that are used to enter pricing in purchasing documents. Common condition types include: n Freight Discounts Surcharges Customs Companies can define their own condition types to satisfy business requirements.

Pricing Pricing procedure Condition type Calculation type Scale basis Gross price Discount % Net price: Fixed freight charge + Effective price: PB00 RA01 FRA1 Calculation type Scale basis Price/quantity scale

Master Conditions l Master conditions are a central repository of pricing for purchase orders. Master conditions can be used in three ways: n Contract: Master conditions in a contract (also known as blanket 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.

Master Conditions Conditions Code Description Amount PB00 Gross Price $10.00 FRA1 Freight 5.0% RA00 Discount on Net 8.0% ZOB1 Customs $/Unit $3.00 Quotation Purchase Order Outline Agreement Info Records

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. ã SAP AG

Exercise for Conditions Now it’s time for you to do: MM03 - Exercise 8 30 minutes

Schedule Topic Two: Master Data in Purchasing Purchasing Information Records Conditions Source List Topic Two: Outline Agreement

General Concept l Source lists specify the sources of supply for a material within a plant over set periods of time. Source lists can be maintained: n Manually From an existing source list From an outline agreement From a purchasing information record Automatically Sources can be marked fixed, preferred, or blocked (temporarily or permanently) during source list maintenance.

Source List Source list 01/01/96 - 06/30/96 Vendor 1 allowed Material M1 Plant 0001 01/01/96 - 06/30/96 Vendor 1 allowed Vendor 2 allowed Vendor 3 allowed 07/01/96 - 12/31/96 Vendor 1 fixed A source list contains the allowed and disallowed sources of supply for a material in a plant. These sources of supply are valid for a specific period of time. Each source of supply is defined via a source list record in the source list. You can specify in the source list via an indicator whether a listed source of supply should be automatically included in MRP.

Mandatory Source List Material Master Data Purchase Requisition Record WIRE-01 Vendor A1500-01 Source list Record Material WIRE-01 Plant 3000 x Purchase Requisition Material WIRE-01 u If the flag is set in the material master, purchasing cannot occur until a source list exists for the material. Setting the flag during configuration for an entire plant requires that source lists exist for all materials of that plant before purchasing can occur.

Processing Source list Manual Automatic Outline Agreement Info Record Source list u Source lists display: Material Plant Specific vendor, outline agreement, or plant Validity periods Source list Material M1 Plant 3000 Default source of supply in requisition via source determination Check in purchase order + requisition for admissibility Source list records can be created manually. This can be done either directly or from within outline agreement or info record maintenance. It is possible to generate source list records automatically on the basis of info records or outline agreement items. If a source list requirement exists, the material cannot be procured from sources of supply that are not included in the source list. A source list requirement can be specified either for an individual material (in the material master record) or for all materials in a plant.

Maintaining Source List Outline Agreement Material WIRE-01 Vendor A1500-01 x Maintain source list Info Record Material: WIRE-01 Vendor: A1500-01 Valid from: 04/03/1995 Valid to: 09/30/1996 Outline Agreement 460000018 Source list Source lists can easily be maintained while maintaining info records and/or outline agreements.

Generating Source List Automatically Info Record Material WIRE-01 Vendor A1500-01 Source list Source List #3 Source List #1 Material WIRE-01 Vendor A1500-01 Valid from: 04/03/1995 Valid to: 09/30/1996 Outline Agreement 460000018 Outline Agreement Material WIRE-01 Vendor A1500-01 u Source lists can be created or updated automatically by selecting specified ranges of info records and outline agreements. Running a simulation allows the user to review the expected results before making an actual update to source list records. Original source list statuses can be restored even after an update.

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

Exercise for Source List Now it’s time for you to do: MM02 - Exercise 9 30 minutes

Schedule Topic One: Master Data in Purchasing Topic Two: Contract Purchasing Information Records Conditions Source List Topic Two: Contract

Congratulations !