Limit SC

[Former Member]

I am working in SRM7.0 , ECS

I am faced by the below query :

What is  the differences between how a limit purchase order and a non limit purchase order work for Accounts Payable? For example, is there any difference in how the spend will be reported? Will invoice processing/matching be any different to a non limit purchase order?

I belive item category B is used in Limit SC which allows the invoice only option . GR is not required . used for unplanned services where service is over long time and regular payments are received

What else is the difference between limit and non limit Sc in the way it works for accounts payable  . Pls let me know

thanx

SRM consultant

[Former Member · Accepted solution]

In ECC the limit item category is designed to work with document type framework order(FO).

In the document type instead of a delivery date, date range is provided along with a limiting value function.

So goods or service to be procured from the vendor within the date range should not excel a limit. At the time of invoice the limit is checked.

Limit shopping cart can be use to create such kind of PO.

with Regards,

Malay

[Former Member · Accepted solution]

Hi Malay

Thanks for responding

Wrt you answer ,

I undertsand that a limit SC creates a Framework order instead of a standard PO (NB) .

Invoicing differs for framework order in that :

1. Quantity and amount have to be entered manually in item line

2. Overall value of invoice can be larger than expected value(on PO)

Is invoicing plan , if configured automatically activated for all FO ?

Could you please explain a little more into this ?

Thanx

SRM consultant

[Former Member · Accepted solution]

Hi,

Invoicing plan assigned at PO item level only. For PO Line item you get the option of selecting invoicing plan which are configured in SPEO.

With invoicing plan, it is possible to schedule automatic invoice run for a particular amount on certain intervals.

For example at the 1st of the month automatic invoice posting happens for 500 USD. Invoicing plan is activated only for the desired PO Line items.

With Regards,

Malay