Local contract in SRM

[Former Member]

Hi ,

What is the functionality of Basic Contract check box in the local contract. I understand that only header data is maintained and there won't be any line items . then how this contract is useful in the procurement chain and in which scenarios these contracts are made use......

Regards

Mani

[yann_bouillut]

Hi Mani,

Here are the benefit of basic contracts :

- <u>conditions apply to a vendor whatever item you buy</u>

- can be used in contract hierarchy : often at the top level

- if the basic contract is assigned to a PO item, the contract conditions applies to the price calculation.

- you have contract reporting and released value.

-in the sourcing cockpit, a basic contract can be found in the source determination. (only if the PO or invoice vendor is the contract vendor).

Please be aware that you can't distribute basic contract to SAP backends and you can't negociate header contract in SAP bidding engine.

Kind regards,

Yann

[yann_bouillut]

Hi,

Basic contract can be used in local and extended classic scenario.

Kind regards,

Yann

[Former Member]

Hi Yann,

a) for the Point --- conditions apply to a vendor whatever item you buy

1) Created a Basic contract for the vendor and maintained the header discount

2) Created the PO for that vendor and the header condition is not copied to the purchase order.

b) u mentioned that assigning the basic contract to the Po item . How and where exactly we can assign the basic contract to the PO item. There is no provision to assign the header contract to the PO item

kindly glow some light on these.

Thanks in advance

Mani