1.  Andersen Consulting 2000 MM03 - Master Data in Purchasing & Contract November, 2000

2.  Andersen Consulting 2000 Topic One: Master Data in Purchasing Purchasing Information Records Conditions Source List Topic Two: Contract Schedule

3.  Andersen Consulting 2000 Master Data in Purchasing Material master Vendor master Purchasing info records Conditions Source List Quota Arrangement

4.  Andersen Consulting 2000 Topic : Master Data in Purchasing Purchasing Information Records Conditions Source List Schedule

5.  Andersen Consulting 2000 General Concepts 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: 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.

6.  Andersen Consulting 2000 Purchasing Info Records Vendor A Material Piece % Conditions USD Piece % Conditions USD Info record Vendor B Stock material M1 Consumable material M2 Service S1 Info record

7.  Andersen Consulting 2000 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

8.  Andersen Consulting 2000 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 Purchasing Organizations Purchasing Organization and Plant (if allowed) Vendor: 1234 Material: Bolt A21 Purch Org: 3000 Plant: 3001 Pricing Conditions Unit Price $6.00/Box Freight 2% Discount 5% Last PO #4500019324 Info Record #5300000816 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 record for a purchasing organization only.

9.  Andersen Consulting 2000 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 10 20 30 or Vendor #1234 Purchase Order 10 20 30 Material Bolt A21

10.  Andersen Consulting 2000 Automatic Update of Info Record Info records are updated differently, depending on the update source: Quotations update info record pricing conditions. Purchase orders and contracts update the last purchasing document number.

11.  Andersen Consulting 2000 Info Records and Pricing Purchasing documents will automatically retrieve pricing from info records in one of two ways: 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.

12.  Andersen Consulting 2000 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

13.  Andersen Consulting 2000 Exercise for Purchasing Information Records Now it’s time for you to do: MM03 - Exercise 7 40 minutes

14.  Andersen Consulting 2000 Topic One: Master Data in Purchasing Purchasing Information Records Conditions Source List Topic Two: Contract Schedule

15.  Andersen Consulting 2000 Info Records and Pricing Purchasing documents will automatically retrieve pricing from info records in one of two ways: 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.

16.  Andersen Consulting 2000 Pricing Conditions in Procurement Pricing Conditions: Determine the effective price of a material in a purchase order, including unit price, discounts, surcharges, freight, and customs fees. Can be maintained in: Info records Contracts Quotations Purchase orders Conditions Code Description Amount PB00Gross Price$10.00 FRA1Freight5.0% RA00Discount on Net8.0% ZOB1Customs $/Unit$3.00

17.  Andersen Consulting 2000 Conditions Discounts/ surcharges Prices Price/Uom UNI 6.25/ST Condition Type PBXX Freight 2% Discount 4% Customs Duty 5% Conditions

18.  Andersen Consulting 2000 Condition Type Condition types are pricing factors that are used to enter pricing in purchasing documents. Common condition types include: Freight Discounts Surcharges Customs Companies can define their own condition types to satisfy business requirements.

19.  Andersen Consulting 2000 Pricing Gross price Discount % Net price: Fixed freight charge + Effective price: PB00 RA01 FRA1 Condition type Calculation type Scale basis Price/quantity scale Pricing procedure

20.  Andersen Consulting 2000 Master Conditions Master conditions are a central repository of pricing for purchase orders. Master conditions can be used in three ways: 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.

21.  Andersen Consulting 2000 Master Conditions Conditions Code Description Amount PB00Gross Price$10.00 FRA1Freight5.0% RA00Discount on Net8.0% ZOB1Customs $/Unit$3.00 Quotation Purchase Order Outline Agreement Info Records

22.  Andersen Consulting 2000 Extended Conditions  SAP AG 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. 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.

23.  Andersen Consulting 2000 Exercise for Conditions Now it’s time for you to do: MM03 - Exercise 8 30 minutes

24.  Andersen Consulting 2000 Topic Two: Master Data in Purchasing Purchasing Information Records Conditions Source List Topic Two: Outline Agreement Schedule

25.  Andersen Consulting 2000 General Concept Source lists specify the sources of supply for a material within a plant over set periods of time. Source lists can be maintained: 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.

26.  Andersen Consulting 2000 Source List Source list 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

27.  Andersen Consulting 2000 Mandatory Source List Material Master Data Material WIRE-01 VendorA1500-01 Source list Material Record Material WIRE-01 Plant3000 x Source list Purchase Requisition Material WIRE-01 Vendor A1500-01  If theSource listflag is set in the material master, purchasing cannot occur until a source list exists for the material.  Setting theSource listflag during configuration for an entire plant requires that source lists exist for all materials of that plant before purchasing can occur.

28.  Andersen Consulting 2000 Processing Source list Default source of supply in requisition via source determination Check in purchase order + requisition for admissibility Manual Source list Material M1 Plant 3000 Info Record  Source lists display:  Material  Plant  Specific vendor, outline agreement, or plant  Validity periods Source list Automatic Outline Agreement

29.  Andersen Consulting 2000 Maintaining Source List Outline Agreement Material WIRE-01 Vendor A1500-01 x Maintain source list Info Record Material WIRE-01 Vendor A1500-01 x Maintain source list Material: WIRE-01 Vendor: A1500-01 Valid from:04/03/1995 Valid to:09/30/1996 Outline Agreement460000018 Source list Source lists can easily be maintained while maintaining info records and/or outline agreements.

30.  Andersen Consulting 2000 Generating Source List Automatically Source List #3  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 List #1 Material WIRE-01 Vendor A1500-01 Valid from : 04/03/1995 Valid to:09/30/1996 Outline Agreement460000018 Source list Outline Agreement Material WIRE-01 Vendor A1500-01 Info Record Material WIRE-01 Vendor A1500-01

31.  Andersen Consulting 2000 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

32.  Andersen Consulting 2000 Exercise for Source List Now it’s time for you to do: MM02 - Exercise 9 30 minutes

33.  Andersen Consulting 2000 Topic One: Master Data in Purchasing Purchasing Information Records Conditions Source List Topic Two: Contract Schedule

34.  Andersen Consulting 2000 Congratulations !