Inco term when use sourcing

[Former Member]

Hi All

We are using SRM 5.0.

my problem is that we want to use the sourcing module, but it is not possible to have a INCO-term on item level, did anyone of you have the same problem and how did you solve this:

We need this because we are a global company and want to do global sourcing and in that case we will not demand the same INCO term on every item line as it is now we are only able to have an INCO term on header level.

Best Regards

Jakob

Edited by: Jakob Bang on Feb 22, 2008 10:45 AM

[Former Member]

Hi Jakob,

you can use attributes on line item level to request the inco terms. They are quite useful for this and can also considered later in automatic evaluation. Works fine.

Additionally you can also modify the screen with a custom field.

Cheers,

Claudia

[Former Member]

Hi claudia

Thank you for your reply, I have also thought about the attributes on line item level but what happend when you convert this to a contract?

how did you manage that the INCO term comes from the attributes to the INCO term field in the contract.

Best Regards

Jakob

[Former Member]

Hi Jakob,

the tricky part with the Inco terms is, that you can to select the value from value list.

This gives vendors access to see the different terms, usually a company does not want to share.

That's why many companies hide that information / field in bid invitation.

In order to get the vendors to provide terms by themselve, the attributes work fine. For getting the information into a contact, yes, there needs to be manual work done.

Only other option I know is to enhance the bid invitation on line item level and modify the convert into contract function to get the information into a contact. Do not know, if the effort worth for you.

Cheers,

Claudia

[Former Member]

Hi Claudia

Thank you for your respons, now I know that I didn't overlook something.

What my buissnes want to do is, they want to define all details in the bid or else they didn't mean the can compare.

e.g. if we ask for a bid in china and on bid in Germany then INCO term EXW will be to different thing (I mean the cost).

So all companies should have the exact same condition.

But than you anyway, I will reward you some points.

BR

Jakob

[Former Member]

Another option is to use the SRM 5.0 contract Hierarchy process. (Extended Classic and local )

You can maintain inco terms at the line level and set up your contract hierarchy at the correct organization levels (e.g. Purchase org, Plant, User)

This will not be an automatic process as you will need to spend time setting up the hierarchy and changing the inco terms at each org level.

However, you should note that using the contract hierarchy will drive you to either distribute the contract value across the hierarchy or customize the validation rules to comment out the release value check at the child level and aggregate all the releases back to the parent.

Use of the copy contract capability will reduce the data entry tasks

[Former Member]

Hi Barry

This sound interesting, but I am a not that familiar with the use of contract in SRM, we are just starting up.

can you tell me in detail how to use these contract Hierarchy process.

As I understand you we have to use the contract hierarchy and the attribute in the sourcing, so we predefine the INCO terms in the contrace.

BR

Jakob

[Former Member]

You may want to review the SRM 5.0 release notes as well as http://help.sap.com/.

(http://help.sap.com/saphelp_srm50/helpdata/en/43/05e86e8bca6e75e10000000a422035/content.htm. ) to get additional info on contract capabilities. As for providing info on how to use, that will be dependent on your business process. We plan on using contract hierarchies to manage our contract spending releases across child suppliers by geo.

From sap help : Contract Hierarchies

Use

This function enables you to assign contracts to a contract hierarchy in the Contract Management application.

This has a number of advantages when processing contracts because you can:

· Group similar contracts together, thus making them easier to find and process

· Make consistent changes across an entire hierarchy

· Stipulate terms and conditions that apply to an entire hierarchy and thus negotiate more favorable discounts for your entire organization

· Manage large and complex contract hierarchy structures

· Access more transparent reporting in SAP NetWeaver Business Intelligence (BI)