Local Contracts as Source of Supply.

[Former Member]

Dear Experts,

We are on SRM 7.0 and Iu2019m not been able to add local contract (based on product id) to the supplier list since the contract number field is activated only once backend system is selected. Hence please let me know if there are any workarounds on the way to make local contracts as source of supply.

Thanks and Regards,

Venkata Koppisetti.

[Former Member · Accepted solution]

Hi,

Did you try with Badi bbp_sos_badi?

Saravanan

[former_member183819 · Accepted solution]

Hello Saravanan

Actually Satya wants to create a source list w.r.t local contract but it is not possible.

Satya create a source list without local contract and with backend contract .

I believe sap dont allow to refer the local contract in source list (vendor list)

Muthu

[Former Member · Accepted solution]

Hi Muthu,

I agree with you but I couldn't get the concept behind this logic for not allowing local contracts to be maintained under supplier list. My scenario is that several contracts are available for a particular product and based on availability the contract should be added to the supplier list in order to be picked automatically during souring, if we add only supplier would the contract be selected during automatic souring?

Thanks and Regards,

Venkata Koppisetti.

[Former Member · Accepted solution]

Are you in classic or extended classic?

[Former Member · Accepted solution]

Dear Netaji,

We are on ECS.

Thanks and Regards,

Venkata Koppisetti.

[former_member183819 · Accepted solution]

Hi Venkat

this is a SAP SRM limitation . till SRM 700 , You may not refer a local contract in the supplier list ( vendor list).

but system allows to create a source list with back end contract.

Muthuraman

[Former Member · Accepted solution]

Hi Muthu,

In my scenario I would like to use 3 contracts as source of supply but for auto po creation, can you please throw some light on how to acheive this.

Thanks and Regards,

Venkata Koppisetti.

[former_member183819 · Accepted solution]

Hi

You can use Quota arranagement

You can use this function in both a manual process and an automated process as part of sourcing to generate purchase orders (POs). Quota arrangements allow you to define target percentages and distribute them between two or more purchasing contracts. A quota arrangement ensures that a contract is guaranteed both a minimum sales volume and a defined percentage of the total purchasing volume of a product category or product. A quota arrangement has the highest priority in the sourcing process.

During the validity period of a quota arrangement, there are two phases:

Fulfillment of guaranteed minimums

Before the system assigns contracts based on target percentages, the quota arrangement ensures that all guaranteed minimums of contracts participating in that quota arrangement are fulfilled. The sequence in which the guaranteed minimums are fulfilled is determined by the target percentages defined in the quota arrangement. Guaranteed minimums are defined in the contract.

Assignment of contracts based on target percentages

Once all of the guaranteed minimums of contracts participating in a quota arrangement have been fulfilled, the system continues to automatically assign contracts based on the target percentages defined in that quota arrangement. The winning contract is then determined by the relative difference between the actual release value and the target value of the quota arrangement.

Integration

You use this function in the following applications:

Contract Management

When you order a purchase order against a contract that is part of a quota arrangement, the system automatically updates the release values for each contract line item.

Sourcing

The system shows the winning contract for a quota arrangement in the manual sourcing process.

During manual sourcing, you can access quota arrangement details from the sourcing application.

Prerequisites

You can only create a quota arrangement if a product category or a product is saved in the system, and a contract is available so that you can assign target percentages for the quota arrangement.

Features

The system allows the source of supply to be selected automatically, based on the fulfillment of guaranteed minimums and target percentages defined in the quota arrangement.

A quota arrangement uses standard rules to determine the winning contract in the sourcing process. However, the system can redetermine a winning contract with your own logic if you implement a Business Add-In (BAdI) from Customizing. To access this BAdI in Customizing for SAP Supplier Relationship Management, choose SRM Server Business Add-Ins (BAdIs) Sourcing Redetermination of the Contract to be Used (Quota Arrangement) .

Activities

To create a new arrangement, choose Strategic Purchasing Contract Management Create Documents Quota Arrangements .

You can change an existing quota arrangement, for example, by modifying the target percentages or adding further contracts (with or without a quota base quantity)

Caution

The contracts in a quota arrangement must have the same base unit of measure.

End of the caution.

Note

In the Quota Base Quantity column, you can enter a nominal released quantity for contracts joining an ongoing quota arrangement. This allows you to simulate participation of the new contract in the quota arrangement immediately. If you leave this field blank, the system assigns the new contract with all sourcing requirements, until it catches up with the other contracts participating in the quota arrangement.

[former_member183819]

Hi Venkat

This is SAP SRM system limitations.

In source list , we can add only Backend contracts only. You can not include local contracts .

In supplier lists, you can also manually allocate back-end contracts from specific systems. This enables more effective sourcing for back-end contracts.

Muthuraman.