Conditions In Purchasing

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Conditions In Purchasing

  1. 1. CONDITIONS IN PURCHASING <ul><li>The term “conditions in purchasing” used in sap is generally for pricing agreements with a vendor. </li></ul><ul><li>Conditions are with respect to gross price, discounts, surcharges, insurance, freight etc., </li></ul>
  2. 2. System pulls conditions from the appropriate records for price determination. <ul><li>Conditions are entered in quotations, info records, contracts, scheduling agreements and purchase orders. </li></ul><ul><li>Conditions are not entered in RFQs (Request for quotations) </li></ul><ul><li>Conditions maintained in an info record will apply to the entire purchase order (PO), when the same vendor and material selected in PO. </li></ul>
  3. 3. A contract is followed by a contract release order which is equaling of purchase order. <ul><li>Conditions adopted in a contract will apply to all the contract release orders (PO), created with reference to that particular contract. </li></ul><ul><li>If a vendor has price reductions for all items during a certain period, we can maintain an info record with reference to a material group and make general conditions of reductions. </li></ul>
  4. 4. TIME DEPENDENT conditions <ul><li>Time dependent conditions are valid in a particular time period. </li></ul><ul><li>Conditions in info records, contracts and general conditions are always time dependent. </li></ul><ul><li>We can create price scales depending price on quantity supplied in these conditions. </li></ul><ul><li>No subtotals are formed in time dependent conditions </li></ul>
  5. 5. TIME INDEPENDENT conditions <ul><li>No validity time period entered. </li></ul><ul><li>The validity corresponds to particular purchasing document. </li></ul><ul><li>Conditions in purchase order are always time independent. </li></ul>
  6. 6. conditions <ul><li>Quotations and schedule agreements can have both time dependant and time independent conditions </li></ul><ul><li>It can be customized with the document types </li></ul><ul><li>Header conditions apply to the whole of document </li></ul><ul><li>Item conditions apply only to particular item of the document </li></ul>
  7. 7. The price entered in the material master is not suggested in a PO by the system. <ul><li>The system searches for price from a vendor specific info record followed by purchase organization specific info record. </li></ul>
  8. 8. Conditions can be created in <ul><li>Info records </li></ul><ul><li>Quotations </li></ul><ul><li>Contracts </li></ul><ul><li>Schedule agreements </li></ul><ul><li>Purchase orders </li></ul>
  9. 9. Conditions are not entered in request for quotations (RFQ)

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