difference between preference indicator and procurement indicator in sap gts

[Former Member]

Dear Experts,

Can you please help me understanding the difference between preference indicator and procurement indicator in sap gts Preference Determination .

Ramu..

[Former Member · Accepted solution]

Hi Ramu,

Basically, a procurement indicator reflects how we can obtain our products in Business process i.e whether we can purchase a product from vendors, produce it in-house, or a combination of the two. Depending on procurement indicators, system will determine the preference eligibility for a product through long-term vendor declarations and their aggregation, through preference determination, or through a combination of both procedures. Basically, it is a raw information that is required while deciding preference eligibility of product in a business case.

But on the other hand, preference indicator is to make sure that the concerned information on preference eligibility part comes back to the Feeder system from GTS system upon finding that a product is eligible for preference determination at the GTS system end. This preference data is updated either in the Feeder system sales order or billing document to further aid in business process execution for a customer taking into account its preference eligibility.

I hope, this will be helpful to you.

Regards,

Aman

[Former Member · Accepted solution]

Hi Anudeep,

Thank you for clarifying the difference  ..

I still have couple of concerns understanding preference determination after going through the SAP help and Configuration steps .

Here are the concerns ..

1. What is preference Rule

2. what is the importance of "prices and values " in preference determination

3. Concept of assigning conditions to a Product ..

4. Process of Preference determination  ( How it works )

Thank you ...

[Former Member · Accepted solution]

Hi Ramu,

Let me come one by one to all the asked questions.

• Preference rules are a set of rules to aid in preference determination in case a product is eligible for preference determination. Normally, this is a XML file provided by the data providers and then loaded into the GTS system

• Prices and Values are critical to preference determination as they are the basis for calculating how much preference will be imparted for a particular business case and product involved.

• For the last two queries, below links will help you to understand further.

Preference Determination - Preference Processing - SAP Library

https://help.sap.com/saphelp_gts101/helpdata/en/47/1dd9d88ffb2c7ce10000000a114a6b/content.htm

I hope this will be helpful to you.

Regards,

Aman