Global Contracts

[Former Member]

Hi Experts,

Need a wide description about global contract? Apart from that the difference between global contract and rate contract.

Thanks

Ama

[Former Member]

my question has been answered.

[Former Member]

Global Contract means a contract, which is available for all your purchasing organisations and plants.For this you have to create the contract with respect to Reference purchase organization.Reference purchase organization is an organization, all purchasing organizations are assigned to reference purchase organization, but it is not assigned to any one. It means it is available for all plants

hope this will clear your doubt

[Former Member]

Hi,

Thanks for your reply,but the answer is not clear as I expect.What do you mean by reference purchase organisation.Why do assign all purchase organisations in to this?

As you explained, purchasing organizations are assigned to reference purchase organization and it is not assigned to any one. Then how it is available for all plants?

Please explaine.

Thanks

Ama

[Former Member]

Ref. Pur Organisation is used when there is no centralized pur. organisation. You have to define 1 pur. organsation as refernce pur. organisation and link other pur orgnisations to this ref. pur. orgaisation. When you create a contract using this pur. organisation and this contract can be used by other pur orgasations which are linked to this ref. pur oganisation.

Ref. Pur Organisation is basically used for better negotiation.

Eg- You are having 2 plants (A & B) of 2 different company code(A & B).

1. Pur org A is assigned to company code A & plant A

2. Pur Orga B is assigned to company code B & plant B.

3. Ref pur organisation C is created and linked to Pur organisation A and B.

Scenario -

Vendor A can supply Material A 1000 qty at Rs. 100 whereas more than 1000 qty at Rs. 90.

But your requirement for Plant A is Rs. 800 and Plant B is Rs.700

If you create a contract on plant basis to the Vendor A then you have to pay Rs. 100.

But if you create a contract with ref pur organisation C for total requirement of Rs.1500 without plant basis then rate will be only Rs.90.

Then this contract can referred by both the plant and can be converted to P.O at Rs.90.