Central purchase contract is a purchasing document that is used to procure materials and services and create a long-term agreement between an organization and a supplier.
In this blog post, we’ll show you how conditions and commodity pricing is used and implemented in a central purchase contract item. These are implemented using the application, Manage Central Purchase Contracts.
Conditions in Central Purchase Contracts
In this section, you can see features related to conditions in a central purchase contract item.
- Modify central purchase contract items by adding conditions with a validity period. The supplementary conditions that are associated with the main conditions are automatically listed on the object page of the application. The validity types that are created for the main conditions are displayed visually on the Gantt chart. Note that you can list the main conditions with the supplementary conditions that are applicable for a specific date by choosing the Valid On option. This opens the Date dialog box, where you can select the date and list all the conditions that are available on the selected date.
- Change the validity type for the conditions by choosing the Change button. Apart from changing the validity type, you can also delete the main conditions and the associated supplementary conditions by choosing Delete on the Gantt chart.
- Delete the supplementary conditions using the X icon (Delete) in the Conditions Amounts section. The line item is deleted from the list and a new blank line with the same condition type is added automatically. Note that you can update all the required values based on your requirements and add the condition line back at any given point of time. You cannot enter the net price for a central purchase contract item. Instead, you need to maintain conditions to determine the net price for a central purchase contract item. When you delete the main condition using the X icon, the condition amount information is cleared from the line.
- Define price change reasons for conditions of a central purchase contract item. You can maintain price change reasons while changing condition information of a central purchase contract item. For this, you can select and add the reasons from the search help when a new condition is added, changed, or deleted for the document.
- Maintain a pricing scale for a central purchase contract item. When you create a condition record for a pricing element, you can define a pricing scale. For example, a scale based on quantity can determine that the more a user orders of a particular product, the lower the price. You can create condition records with quantity or value scaled based on the configuration of the condition type. A pricing scale can be based n value or quantity criteria types. In each condition record where you define a scale value, you can further specify he scale type. The scale type determines whether the scale is a From-scale or a To-scale. For example, if you specify a From-scale that is based on quantity, the scale determines different process based on different quantities. You can add or delete scaled for plant independent and plant dependent conditions for central purchase contract items depending on the configuration of the condition types.
- Transfer scales and plant conditions from hub system to connected systems. When you distribute a central purchase contract, the quantity or value scales for plant dependent conditions or plant-independent conditions are transferred to connected systems. Also, the plant-dependent conditions are transferred along with the corresponding plant-independent conditions, depending on the plant maintained in the connected system.
- Simulate a price for a central purchase contract item. You can simulate the price for a particular central purchase contract item for a given date. To do this, navigate to the Price Simulation section under the Conditions facet of the application. Provide all the mandatory details such as the Pricing Date, Currency, and Quantity, and choose Simulate. This simulates the price of the particular item for the specified date period.
- Create default conditions for a central purchase contract item.
- In addition to creating conditions manually, you can create default conditions for a central purchase contract item when the net order price and price unit is maintained.
- If the pricing schema configured for the supplier and purchasing organization contains a single base price condition, then for the net price entered, a default condition record is added defaulting the main condition.
- If the pricing schema configured for the supplier and purchasing organization contains multiple base price conditions, then for the net price entered, a default condition record is added defaulting the first basic price condition.
- If the pricing schema configured for the supplier and purchasing organizations contains only the Commodity Pricing Enabled (CPE) condition types as the main condition, then for the net price entered, no default conditions are created, and the net price is reverted. In this case, you have to manually create the condition details.
- Configure the settings to enable version management for conditions.
Commodities in Central Purchase Contracts
In this section, you can see the features related to commodities in a central purchase contract item.
- To maintain the commodity quantity for a material in a central purchase contract item, in the Commodity facet, choose Create. Here, you can maintain validities such as Valid From, Valid To, commodity code, and the quantity associated with it. The system displays the commodity names associated with configured data.
- Delete a commodity by choosing Delete. Note that the commodity quantity is an essential factor for determining the value of the Commodity Pricing Enabled conditions. Once the commodity quantities are maintained and the main conditions are created, the value of the related Commodity Pricing Enabled conditions are automatically determined by the system and is visible on the Conditions Amount You cannot delete a commodity if the quantities are already maintained for the commodity. Unit of measure should me same for all condition records within a validity period of a central purchase contract item.
- Configure the settings to enable version management for commodities.
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For more information on SAP S/4HANA for Central Procurement, check out the below links:
For Configuration related information, check out the SAP S/4HANA Best Practices Guide