Source of Supply

Trainer : Email : Ph : (Australia)

Gurjeet Singh info@studynest.org +61413159465
 Types of Purchase Info Records.
Cross plant and plant specific PIRs.
Conditions in Purchase Info Records.
Buyer’s Negotiation Sheet.
Types of Purchasing Contracts.
Topics Central and Plant specific Contracts.
Covered Item categories in Contracts.
Contract release orders.
Scheduling Agreements.
Release Creation profile.
Forecast and JIT Delivery Schedule.
Source of
Supply
Purchasing Info
Record
 You often procure material form the
same vendor at the same price and
condition.
Business You would like to create a
Example Purchasing Information Record as
source in the system and this PIR
will be used as a reference for all
future’s Purchase Orders.
Purchasing
Info
Record
Purchasing
Info
Structure
 Default
Pricing in
Purchase
Orders
PIR for
Material
Group
 Price
change
for PIRs
Logistic  Material Management  Purchasing
 Master Data  Conditions  Vendor Price
Changes  Involving Info Records (MEKP)
 Buyer’s
Negotiation Sheet
 Buyer‘s
Negotiation
Sheet

Logistic  Material Management  Purchasing

 Master Data  Info Record  Buyer’s
Negotiation Sheet  By Vendor (ME1X)/By
Material (ME1Y)
Assignment
(PIR)
 Create a new PIR record for your vendor
and material also text PO text as “Freight
prepaid delivery” and save it.
Create a new Purchase order for the same
vendor and material and check if system
Assignment
(PIR) adopted the PIR data automatically?
1 How would you search for this PIR using
vendor number or material number only?
How can you change the condition (price)
for your PIR?
If the vendor asked for 2% price rise,
starting 1st of next month, how would you
implement this?
 Create a PIR for a Material Group for P/org
1000, PDT – 5 days and Price – 10 EUR/pc.
Create a new Purchase order with short
Assignment text “Spare Parts” using account assignment
(PIR) category as ‘K’. Manually select your PIR
2 record for this purchase order and observer
the data (like Planned delivery time, price
etc) picked up from your PIR.
 Outline
Agreement
 In Purchasing, you would like to
make a long term delivery contract
with your vendor. For this reason,
you enter contracts as source.
Business Prices negotiated centrally (i.e.
Example Entire corporate group) are
represented in the form of centrally-
agreed contracts. These can later be
used as a basis for creating plant-
specific contracts or scheduling
agreements.
 Types of
Outline
Agreement

1. Contract
2. Scheduling Contracts
Contracts
Reference
in
Contracts
 Contract
Release
Procedure
Types of
Contracts

1. Quantity Contract (MK) – 10000 pcs

2. Value Contract (WK) - $100,000
Centrally
Agreed
Vs Plant
Specific
Contracts
 Plant
Conditions
in
Centrally
Agreed
Contract
 Contact
Item
Categories
M and W
 ITEM CATEGORY ‘M’ – You have set up a
contract with your vendor covering various
types of writing papers (lined, squared, blank
etc). The different types of paper have the
same weight, quality etc but the material
Contact number is unknown now while creating
Item contract item.
Categories ITEM CATEGORY ‘W’ – You have set up a
contract with a vendor for various electrical
M and W
equipments. The precise item is only
determined upon ordering. So instead of
creating one contract item for each electrical
item you can use item category W and enter
the exact item in the contract release order.
Assignment
(Contracts)
 Create a CENTRAL Quantity Contract (ME31K)
for a material and enter a current price. Also
change the “Date Category” to 2 (Del date) and
save this contract.
 Now open this contract and add NEW price
Assignment starting 1st of next month & Save.
(Contracts) Create a Contract release order for items-
1 First item for plant 1000 and let the system
determine the delivery date.
Second item for plant 1100 and change the
delivery date to 2nd of next month.
Did you notice any difference in the prices of
both items? Why?
How can you check the balance qty left in your
contract?
 You have entered into further plant-specific contract
with a vendor. This contract is valid for one year and
target value is 50,000 EUR.
Item 10 Since you do not want to list each
material in contract so you use item category M
(material unknown) and PDT – 5days, Price – 1
Assignment
EUR/piece.
(Contracts)
 Item 20 The object of this item is the purchase
2 of “Other Packing Material”. Use any material
group, item category W (material group) and PDT –
3 days.
Create a Contract release order and order below
materials –
200 boxes of material PK-080.
50 pcs of Packing boxes (as there is no material
master record so you account assignment category
K here.
Scheduling
Agreement
 You want to use Scheduling
Agreements to handle the
procurement of certain regularly
Business required materials.
Example You want to look into the option of
schedule lines to be created
manually or automatically generated
by MRP.
 Oveview
of
Scheduling
Agreement
 Types of
Scheduling
Agreement
 Scheduling Agreement without
Types of Release documentation.
Scheduling Scheduling Agreement with
Agreement Release documentation.
 Scheduling
Agreement without
Release
Documentation
 SA without
Release
Documentation

SA Document Type - LP
Automatic
Generation
of
Scheduling
Lines
 Scheduling
Agreement with
Release
Documentation
 Document
Type - LPA

SA with
Release
Documentation
– Types of SA
release FRC – Forecast Delivery Schedule for
medium to long term overview of requirement
given to Vendor.
JIT – Just-In-Time delivery Schedule is used
for short term requirements like per day.
Customizing
Creation Profile
Customizing
Customizing
Aggregation
Customizing
Tolerance
Limit
 Assignment
(Scheduling Agreements)
 Create a scheduling agreement (LP) without
release documentation for 2 years of validity and
target qty as 100,000 pcs. Save your agreement.
Maintain the schedule lines as per below in ME38
Assignment
(Scheduling
Agreement)
1

Where can you check the output message send

to the vendor?
 Enter the JIT indicator in your material master and also
enter release creation profile ZTM2 in your vendor
master.
Create a Scheduling Agreement (LPA) with 2 years of
Assignment validity using the above vendor and material master with
a target qty of 100,000 pcs. Before saving the SA, branch
(Scheduling to the additional data and verify that release creation
Agreement) profile ZTM2 and JIT indictor has been adopted from
2 master data.
Maintain below Schedule lines (ME38) –
 Generate a FRC delivery schedule.
Now generate the JIT delivery schedule for your line
item.
Select your item and goto item  “SA Release docu”
Assignment and then click on “Creation/Transmission” tab page.
(Scheduling Display the release creation profile – What setting do
Agreement) you see for FRC and JIT planning?
2 What daily and weekly aggregation you can see for
your FRC and JIT delivery schedules?
continue....
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