Material Price cannot be deterimied

Hi,

Good day to all,

I want to do external purchase of some components via a PM order. So I've created a PM order and entered the material in Components tab with Item Category = N (non stock) and entered all the required information for purchasing. But then comes the error message "Price cannot be determined for material xxxxxxxxx Message no. CO283". The material has a contract and its entered in source list as well as "Fixed". Basically thats the only source of the materil. Then, why doesn't the system pick the contract up?

Please guide.

Cheers

Deepal