Product Category Contracts

[Former Member]

Hi,

I have a few questions on Contracts in SRM

If I select Normal line type, the system requires Product, unit price, target quantity/value for auto sourcing of the shopping carts

but if I select Item Category of the line as Product Category, there is no unit price, product, so how do these contracts work in sourcing of the shopping carts? and how are these type of contract useful?

On the contract header, there is a "Basic Contract" field, what does it mean and when I select it, this contract is showing up for all the unsourced shopping carts? so what is the real use of this field?

Thanks,

CS

[Former Member]

Hi,

Can someone answer these questions?

Thanks,

CS

[former_member183819]

Hi CS

As per standard for material grouo contract , release quantity will not be displayed.

PRODUCT CATEGORY TURNS INTO ITEM CATEGORY W IN ECC IF YOU DISTRIBUTE GOA TO ECC

Item Category W (Material Group)

Item category W allows you to enter a material group without entering the value or quantity of the contract item. Item category W is for value contracts only.

Consider a contract for cable. The contract covers every type of cable on the vendor's price list. The exact type of cable is known only at the time a specific cable is ordered.

Instead of entering an item for every type of cable the vendor is able to supply, you could enter item category W and the material group (say, CABLE). The short text would indicate that the contract item covers all types of cable supplied by the vendor.

Each release order issued against this contract would then specify the actual type and quantity of cable (for example, double-shielded coax, 1 spool) as well as the price.

How Do You Use Item Category W?

When you create the contract item, enter the item category W, the short text, and the material group. You do not enter a price or conditions for the item. However, it is possible to specify conditions in the document header. For example, you can enter a discount in the header conditions if the vendor grants a discount on all Pos relating to the contract. The discount is automatically taken into account when the release order is created.

You can enter a material number in the contract release order. The corresponding material master record must be assigned to the same material group specified in the referenced contract item. If the release order does not have a material number, then it must contain a valid account assignment, such as a cost center.

Basic Contract

If you set this indicator, the contract only has header information and conditions and no line items. Basic contracts cannot be distributed to the catalog.

SOME BUTS FROM sap

SAP Note 892491 - Basic contract flag in GOA

Symptom

While executing Transaction BBP_CTR_MAINCC (Process Global Outline

Agreement) Basic contract flag should not be there while creating

Purchasing Contract.

are you expecting here like screen control w.r.t contract document type in srm?

br

muthu

[Former Member]

Muthu,

Thanks again for your time and help in explaining the basics of this product category contracts, now let me bother you with couple of more questions,

You mentioned that we can create a product category contract (PCTR not GCTR) called "Cable Contract" with say Vendor ABC, so that any purchase made against this product category Cable can be released from this contract. So can this happen in SRM too? I mean when you create a SC with Cable Prod category, can you use this contract from Sources of supply tab?

Also, we have direct proc PR's coming from ECC to SRM for sourcing, so if I create a GOA (GCTR) like you mentioned, can our PR's in ECC be autosourced right there in ECC without even coming in to SRM if I distribute the GOA in to ECC?

Third and final question is we have punchout catalogs like office depot, and we wanted to track spend on those PO's from them, so can I create a product category contract with Office Supplies for Office Depot and whenever I buy something from punchout (office depot), will it make a reference to this Contract? actually my requirement is to ref the contract with no lines so that our T&C's etc are read from the contract in to the PO.

Please reply and keep up your great work.

Thanks,

CS

[former_member183819]

Hi CS,

if you are in classic.

Q1.You mentioned that we can create a product category contract (PCTR not GCTR) called "Cable Contract" with say Vendor ABC, so that any purchase made against this product category Cable can be released from this contract. So can this happen in SRM too? I mean when you create a SC with Cable Prod category, can you use this contract from Sources of supply tab?

A1.yes. This distributed contract is available for backend PR as well as SRM sc too.

Q2.Also, we have direct proc PR's coming from ECC to SRM for sourcing, so if I create a GOA (GCTR) like you mentioned, can our PR's in ECC be autosourced right there in ECC without even coming in to SRM if I distribute the GOA in to ECC?

A2.since you have negotiated a contract and already deployed a contractto ECC system and again why to srm so dont bring PR which already assigned SOS PR .

br

muthu

[Former Member]

Sorry, we are in ECS, so how can I make this work?

[former_member183819]

Hi

for example.

your business has Direct material purchasing and Indirect material purchasing scenario.

Direct material purchasing handled in ECC and you can create contract (GOA) and distribute to backend materials contract (GCTR and your PR can utilise this contract.

Indirect material purchasing in SAP SRM with local contract (PCTR).

regards

muthu

[former_member183819]

Hi

for example.my business process followed.

your business has Direct material purchasing and Indirect material purchasing scenario.

Direct material purchasing handled in ECC and you can create contract (GOA) and distribute to backend materials contract (GCTR and your PR can utilise this contract.

Indirect material purchasing in SAP SRM with local contract (PCTR).

regards

muthu

[former_member183819]

Hi

for example business process followed.

your business has Direct material purchasing and Indirect material purchasing scenario.

Direct material purchasing handled in ECC and you can create contract (GOA) and distribute to backend materials contract (GCTR and your PR can utilise this contract.

Indirect material purchasing in SAP SRM with local contract (PCTR).

regards

muthu