1. MM03 - Master Data in Purchasing & Contract
November , 2000

2. Schedule Topic One: Master Data in Purchasing Topic Two: Contract
Purchasing Information Records
Conditions
Source List
Topic Two: Contract

3. Master Data in Purchasing
Material master
Vendor master
Purchasing info records
Conditions
Source List
Quota Arrangement
You can maintain data for info records, source list, quota arrangements, vendors, conditions and output (messages) from the purchasing menu and material data from the material master menu.

4. Schedule Topic : Master Data in Purchasing
Purchasing Information Records
Conditions
Source List

5. General Concepts l
The Purchasing Info Record belongs to the master data
for purchasing. It holds information for a specific
material and vendor combination .
Info records allow the definition and maintenance of: n
Current and future prices and conditions (e.g., freight, discounts)
Delivery data (e.g., delivery lead time, tolerance limits)
Vendor data
Text
Data maintained in info records appears as default
values in purchasing documents (e.g., purchase
orders, contracts) during creation.

6. Purchasing Info Records
Vendor A
Material
Piece % Conditions
USD
Info record
Vendor B
Stock material M1
Consumable material M2
Service S1
Data which describes a supply relationship is stored in the purchasing information record.
Data from the info record appears as default data when you record purchasing transactions.
You can run analyses using data stored in info records, for example:
Which vendors supply a certain material?
Which materials does a particular vendor supply?
Info records can be created manually or automatically.
A distinction is made between info records with a material master record (stock material info records) and info records without a material master record (info records for non-stock material).

7. Data in the Purchasing Info Record
Prices and
Conditions
Gross price
Discount
Freight
Duty, etc.
Texts
Purchase order text
Info record note
Control data
Delivery time
Minimum quantity
Tolerances
General data
Vendor data
Origin data
Order unit
Statistics
Price history
Ordering statistics
Change history
In addition to general data on the supply relationship, an info record also contains data which can be maintained for each purchasing organization and plant.

8. Organizational Elements of Info Record
Info records can exist for:
Vendor:
Material: Bolt A21
Purch Org:
Pricing Conditions
Unit Price $6.25/Box
Freight %
Discount %
Last PO # l
Purchasing
Organizations
Organization
and Plant
(if allowed)
Plant:
Unit Price $6.00/Box
Discount %
Last PO #
Info Record #
The R/3 System will search for an info
record for a purchasing organization
and plant combination first. If one
does not exist, it will look for an info
only.

9. Maintaining an Info Record
Vendor:
Material: Bolt A21
Purch Org:
Pricing Conditions
Unit Price $6.25/Box
Freight %
Discount %
Last PO #
Info record
Quotation 10 20 30
Info records can be automatically created or updated from a
quotation, purchase order, or outline agreement. They can
also be manually created and maintained.
Manual
Outline
Agreement or
Vendor
#1234
Purchase
Order
Material
Bolt A21
You can set an indicator that will cause the automatic maintenance of a purchasing info record (and the PO history) to be initiated when a purchasing document is created.

10. Automatic Update of Info Record
Info records are updated differently, depending on the
update source: l
Quotations update info record pricing conditions.
Purchase orders and contracts update the last
purchasing document number.

11. Info Records and Pricing
Purchasing documents will automatically retrieve pricing
from info records in one of two ways: l
Conditions:
Pricing conditions will be used if they were
created for an info record either manually or through
quotation maintenance.
Last purchase order:
If an info record does not contain
pricing conditions, the system reads the last
purchasing document number from the info record and
obtains the price from the last purchasing document.

12. Purchasing Info Records Summary
The purchasing info record contains information on a special vendor relationship
Info records can be created or updated manually or automatically when you maintain purchasing documents
When info records are updated by purchase orders the last purchase order , rather than conditions , is marked in the info record
On the other hand - if the info record does not contain conditions that have been entered manually - the price of the purchase order item is determined from the previous purchase order
Data maintained in info records is displayed as default values when you create purchasing documents
An info record can be valid for only one plant or for all plants belonging to a purchasing organization

13. Exercise for Purchasing Information Records
Now it’s time for you to do:
MM03 - Exercise 7
40 minutes

14. Schedule Topic One: Master Data in Purchasing Topic Two: Contract
Purchasing Information Records
Conditions
Source List
Topic Two: Contract

15. Info Records and Pricing
Purchasing documents will automatically retrieve pricing
from info records in one of two ways: l
Conditions:
Pricing conditions will be used if they were
created for an info record either manually or through
quotation maintenance.
Last purchase order:
If an info record does not contain
pricing conditions, the system reads the last
purchasing document number from the info record and
obtains the price from the last purchasing document.

16. Pricing Conditions in Procurementl
Determine the effective price of a material in a purchase
order, including unit price, discounts, surcharges, freight,
and customs fees.
Can be maintained in: n
Info records
Contracts
Quotations
Purchase orders
Conditions
Code Description Amount
PB00
Gross Price
$10.00
FRA1
Freight
5.0%
RA00
Discount on Net
8.0%
ZOB1
Customs $/Unit
$3.00

17. Conditions Conditions Discounts/ Prices surcharges
Price/Uom UNI 6.25/ST
Condition Type PBXX
Freight % Discount % Customs Duty %
Conditions .

18. Condition Type l Condition types are pricing factors that are used to
enter pricing in purchasing
documents.
Common condition types
include: n
Freight
Discounts
Surcharges
Customs
Companies can define
their own condition types
to satisfy business
requirements.

19. Pricing Pricing procedure Condition type Calculation type Scale basis
Gross price Discount %
Net price: Fixed freight
charge Effective price:
PB00
RA01
FRA1
Calculation type
Scale basis
Price/quantity
scale

20. Master Conditions l
Master conditions are a central repository of pricing for
purchase orders.
Master conditions can be used in three ways: n
Contract:
Master conditions in a contract (also known as blanket
order or outline agreement) apply to all release orders issued
against the contract.
Info Record:
Master conditions in an info record apply to all
purchase orders for the specific material and vendor combination
contained in the info record.
Extended Conditions: :
These master conditions apply when
specific criteria are met in a purchase order.

21. Master Conditions Conditions Code Description Amount PB00 Gross Price
$10.00
FRA1
Freight
5.0%
RA00
Discount on Net
8.0%
ZOB1
Customs $/Unit
$3.00
Quotation
Purchase
Order
Outline
Agreement
Info
Records

22. Extended Conditions l
Extended conditions are a flexible way of setting vendor
pricing. They will be included in the price calculation of a
purchase order if the PO meets certain criteria.
Extended conditions are more flexible than master
conditions in contracts or info records, because you can
define the criteria that must be met before they are
applied. n
Example: Vendor 123 offers a 10% discount for all materials
purchased during the month of May.
Extended conditions can be established for vendor,
vendor sub-range, condition group, material type,
incoterms, or invoicing party. ã
SAP AG

23. Exercise for Conditions
Now it’s time for you to do:
MM03 - Exercise 8
30 minutes

24. Schedule Topic Two: Master Data in Purchasing
Purchasing Information Records
Conditions
Source List
Topic Two: Outline Agreement

25. General Concept l Source lists specify the sources of supply for a
material within a plant over set periods of time.
Source lists can be maintained: n
Manually
From an existing source list
From an outline agreement
From a purchasing information record
Automatically
Sources can be marked fixed, preferred, or blocked
(temporarily or permanently) during source list
maintenance.

26. Source List Source list 01/01/96 - 06/30/96 Vendor 1 allowed
Material M1
Plant
01/01/ /30/96
Vendor 1 allowed
Vendor 2 allowed
Vendor 3 allowed
07/01/ /31/96
Vendor fixed
A source list contains the allowed and disallowed sources of supply for a material in a plant. These sources of supply are valid for a specific period of time. Each source of supply is defined via a source list record in the source list.
You can specify in the source list via an indicator whether a listed source of supply should be automatically included in MRP.

27. Mandatory Source List Material Master Data Purchase Requisition Record
WIRE-01
Vendor A
Source list
Record
Material WIRE-01
Plant
3000 x
Purchase
Requisition
Material WIRE-01 u
If the
flag is set in the material master,
purchasing cannot occur until a source list exists for
the material.
Setting the
flag during configuration for
an entire plant requires that source lists exist for all
materials of that plant before purchasing can occur.

28. Processing Source list
Manual
Automatic
Outline
Agreement
Info
Record
Source list u
Source lists display:
Material
Plant
Specific vendor, outline
agreement, or plant
Validity periods
Source list
Material M1
Plant
Default source of supply
in requisition via source
determination Check in purchase order
+ requisition for admissibility
Source list records can be created manually. This can be done either directly or from within outline agreement or info record maintenance.
It is possible to generate source list records automatically on the basis of info records or outline agreement items.
If a source list requirement exists, the material cannot be procured from sources of supply that are not included in the source list. A source list requirement can be specified either for an individual material (in the material master record) or for all materials in a plant.

29. Maintaining Source List
Outline
Agreement
Material WIRE-01
Vendor A x
Maintain source list
Info
Record
Material:
WIRE-01
Vendor: A
Valid from:
04/03/1995
Valid to:
09/30/1996
Outline Agreement
Source list
Source lists can easily be maintained while maintaining
info records and/or outline agreements.

30. Generating Source List Automatically
Info
Record
Material WIRE-01
Vendor A
Source list
Source List #3
Source List #1
Material
WIRE-01
Vendor A
Valid from:
04/03/1995
Valid to:
09/30/1996
Outline Agreement
Outline
Agreement
Material WIRE-01
Vendor A u
Source lists can be created or updated automatically by selecting
specified ranges of info records and outline agreements.
Running a simulation allows the user to review the expected results
before making an actual update to source list records.
Original source list statuses can be restored even after an update.

31. Source Determination Summary
Source of supply are administered using the source
Source lists is used in source determination. During this process , a source may be automatically assigned to an item of a purchase requisition
The source list is used not only for the purpose of source determination but also to check the admissibility of possible sources
A source determination process can also be carried out for materials that do not have a master record

32. Exercise for Source List
Now it’s time for you to do:
MM02 - Exercise 9
30 minutes

33. Schedule Topic One: Master Data in Purchasing Topic Two: Contract
Purchasing Information Records
Conditions
Source List
Topic Two: Contract

34. Congratulations !