Purpose of Basic contract in SRM

[Former Member]

Hi,

I have created a Basic contract in SRM with below details:

1. Vendor

2. Validity period

3. Conditions.

But how to use this Basic contracts in SRM. Do we have to link them while creating a shopping cart. If so how to attach them? How will the usage be updated in contract again?

And also currently we are using the Limit POs (giving Validity period, Value limit, vendor and PO will be created with Item cateogry 'D' in backend ) in SRM. How can we reduce the usage of these limit orders and replace these Basic contracts instead of limit orders.

Please give me an elaborated view on these Basic contracts.

Regards

[Former Member]

Still unanswered,but closing the thread

[Former Member]

Hi,

Basic contracts are used as an outline for a contract with (multiple) sub-items. It can f.e. contain outline / general contract conditions which apply to all sub-contract items. The basic contract as an entity doesn't show up as a possible source of supply withing sourcing/purchasing.

Kind regards,

Tim

[Former Member]

Hi Pavithra!

Once you have created a contract with a particular vendor say 'A' for a material 'B' , then while creating a shopping cart in SRM 7.0 for the above material 'B' , the contract with vendor 'A' will appear as one of the source of supply along with other possible sources. U can then select this contract and the quantity of material chosen while creating the shopping cart will be deducted from the quantity mentioned in the contract.All this will be updated in ur backend. (Assuming a classic scenario).

Cheers,

Nikhil

[Former Member]

Muthu,

Thanks for quick reply.

In the link below, I could not find the solution for how to use it and link it with Purchase orders.

Please let me know. It would be very helpful for me.

Regards.

[former_member183819]

honestly i dont know but some information for youon basic contract

i think it is used for only local contract.

You can also create a basic contract that does not contain any item data.

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

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?

Note 1086178 - Basic contract unavailable as a source of supply

br

muthu