Purchase Contract - Basic Contract Indicator

[Former Member]

Hi SRM'ers,

When creating a purchase contract, there is a selection indicator on the header for 'Basic Contract' (field name = NO_ITEMS_ALLOWED)

If you select it during the creation of the contract, it removes the items tab, hence the field name

What is the purpose of this, and how would this be applicable in the practical sense?

Many thanks

[Former Member]

Does any one know the use of this indicator in contracts?

[former_member183819]

Hi CS

extracted from yann thread.

Here are the benefit of basic contracts :

- conditions apply to a vendor whatever item you buy

- 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.

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

br

muthu