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If any issue in case we apply PurchasingSide T/C only?

frank100
Explorer
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Dears,

My client is a manufacturing company who purchases raw material from both future exchange and local fixed vendors.

In case buy the future, it has to activate GTM but only purchasing side T/C is required. In such case, will be any issue if it only has purchasing T/C which can not do the assosiation with sales side T/C? and if we have to swith between GTM T/C and logistics contract for different purchasing model?

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Answers (1)

Answers (1)

peter_langner
Active Contributor
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Hi Frank,

if you are using GTM as a long/short trader, the association is used to monitor the long/short situation. In such a case, your single sided purchase trading contract will be shown as a long position ( t-code WB2L). If it is never associate with a sales sided trading contract I would consider it as what a long/short trader wants.

In your case I am not sure about the way you want to use GTM, because you write "logistic contract". Are you using GTM with agricultural products like e.g. wheet? If this is the case, you probably need the agricultural enhancement.

I strongly recommend you to get advice from your GTM consultant. Otherwise you might head into a wrong direction.

I hope this helps.

Best

Peter

frank100
Explorer
0 Kudos

Hello, Peter,

Thanks for your reply. My situation is, the company purchase raw material, like ores, from future exchange, and will put them into production process. We may drop a purchasing for 100 tones but subsequently fix the price in 5 times, different price for each 20 tones. that's why we check if a one side T/C can help us... it seems MM contract can not fulfill above requirement.