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Formula based Conditions for Purchase Order and Central Contract

In case of commodity procurement most of the time the condition values are based on some formula such as average, median, etc of the commodity value. Hence there is a need for formula based condition types in SRM for calculating the condition values based on the formula.


This feature allows the user to define a formula and associate it with a condition type. User can then click on the formula hyper link and determine the change of price for a purchase order or contract based on the condition type and the formula associated with it.

Formula based condition is enabled for:

     Purchase Order

     Central Contract

User can maintain the formula values by clicking on the Formula hyper link that appears against the condition type.

The values entered in the formula will decide the Condition amount.


To use this feature, you have to first activate the Business Function SRM_CONT_IMPR_3 and then activate the Customizing switch Formula Based Condition for PO and Contract(SRM_703_LDH_PO) under SRM Server-> Cross-Application Basic Settings->Pricing-> Activate/Deactivate Formula Based Condition for PO and Contract.

Formula can be defined using the transaction, /nbrfplus. Formula ID for a condition type needs to be created first using this transaction.

Formula can be associated to a condition type and business object( Contract or PO ) in SAP SRM under: SRM Server-> Cross-Application Basic Settings->Pricing-> Maintain Formula for Purchase Order and Contract

For complete details about SAP SRM 7.03 refer: SAP SRM 7.03

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