sap online training

Master conditions in SAP are conditions that determine the effective price in the purchase order. They serve as a central repository of pricing for purchase orders. They are automatically included in the price calculation in the purchase order if the PO references a contract or an info record, or if it meets certain criteria defined in the extended conditions.
There are three types of master conditions in SAP:
Conditions in contracts – Conditions in a contract apply to all release orders issued against the contract.
Conditions in info records – Conditions in the info record apply to orders that specify the material and vendor contained in the info record.
Extended conditions – These are a flexible way of setting vendor pricing. Extended conditions are master conditions that are included in the price calculation in a purchase order only if the PO meets certain criteria. One way to use extended conditions would be to define a 10% discount on all orders placed with a specific vendor that are created by a certain purchasing organization. In this case, the vendor number and purchasing organization are the two criteria a PO must meet before the price in the PO can be calculated.

Extended conditions are more flexible than master conditions in info records or contracts because you can define which criteria they must meet before they are applied to a purchase order. The documentation on outline agreements and purchasing info records shows how the conditions specified in outline agreements and purchasing info records, respectively, influence the calculation of the effective price in the purchase order.
The next post will learn how to specify conditions that apply to the pricing of all orders for any material with a vendor, not only for a specific material or material group as is the case
with outline agreements and info records.
More details
sap online training | Sap Online Tutorials | sap training courses | sap training in Chennai | sap training in Bangalore
,

What is Contract in SAP?

A contract is a longer-term agreement with a vendor (one of the two forms of “outline agreement” in the SAP system) to supply a material or provide a service for a certain period of
time. A number of different terms may be used for this concept in purchasing literature, including “blanket order”, “blanket contract”, “systems contract” and “period contract”.
The contract in sap does not contain specific delivery dates or the individual delivery quantities. These are specified subsequently in release orders issued against the contract.

Contract types

When creating a contract, you can choose between the following contract types:

Value : The contract is regarded as fulfilled when release orders totaling a given value have been issued. Use this contract type in sap when the total value of all release orders should not exceed a certain amount.

Quantity: The contract is regarded as fulfilled when release orders totaling a given quantity
have been issued. Use this contract type when the total quantity to order over the duration of the contract is known.

Ways of creating contracts,

You can create a contract in one of the following ways:

1) Manually, You enter all the contract data manually.
2) By using the referencing technique, You can create a contract by referencing purchase requisitions RFQs/quotations other contracts

You can also mix the two methods: you can create a contract by referencing an existing one, and then change or enter some items manually.

The SD Master Contract Structure and How its Configured?

A Master contract consists of other contracts that are grouped as lower level contracts. Thus, that the master contract has the general data that is relevant for all the levels of contracts over the specific period of time. The main contracts are grouped in order to ensure that all the data in the lower level contracts remain consistent and that terms granted in the master
contract are copied into all lower level contracts.

Contracts are agreements between the two parties like Customer and Vendor to supply materials/services for a specific price between a fixed period of time. Most possible
types of contracts exists based on the types of contracts. For example, there are different contracts like maintenance contracts, service contracts, quantity contracts, value contracts
all of which we will be discussing over the course of this article.

The bottom line however remains the same – A contract is an agreement between the Customer and vendor to supply goods/materials/services of specific quantity/value for a specific price over a specified period. Let’s discuss the different types of contracts

More Details: Sap online training, Sap Online Tutorials, Sap training in Chennai, Sap training in Bangalore.

Master conditions in SAP

Master conditions in SAP are conditions that determine the effective price in the purchase order. They serve as a central repository of pricing for purchase orders. They are automatically included in the price calculation in the purchase order if the PO references a contract or an info record, or if it meets certain criteria defined in the extended conditions.

There are three types of master conditions in SAP:

Conditions in contracts – Conditions in a contract apply to all release orders issued against the contract.

Conditions in info records – Conditions in the info record apply to orders that specify the material and vendor contained in the info record.

Extended conditions – These are a flexible way of setting vendor pricing. Extended conditions are master conditions that are included in the price calculation in a purchase order only if the PO meets certain criteria. One way to use extended conditions would be to define a 10% discount on all orders placed with a specific vendor that are created by a certain purchasing organization. In this case, the vendor number and purchasing organization are the two criteria a PO must meet before the price in the PO can be calculated.

Extended conditions are more flexible than master conditions in info records or contracts because you can define which criteria they must meet before they are applied to a purchase order. The documentation on outline agreements and purchasing info records shows how the conditions specified in outline agreements and purchasing info records, respectively, influence the calculation of the effective price in the purchase order.

The next post will learn how to specify conditions that apply to the pricing of all orders for any material with a vendor, not only for a specific material or material group as is the case
with outline agreements and info records.

More Details: Sap training courses, Sap online training, Sap Online Tutorials, Sap training in Chennai, Sap training in Bangalore