CONDITIONS IN PURCHASING

The term conditions in purchasing

used in sap is generally for pricing
agreements with a vendor.

Conditions are with respect to gross

price, discounts, surcharges,
insurance, freight etc.,

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System pulls conditions from the
appropriate records for price determination.
Conditions are entered in quotations, info
records, contracts, scheduling agreements
and purchase orders.
Conditions are not entered in RFQs
(Request for quotations)
Conditions maintained in an info record
will apply to the entire purchase order
(PO), when the same vendor and material
selected in PO.
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A contract is followed by a contract release
order which is equaling of purchase order.

Conditions adopted in a contract will apply

to all the contract release orders (PO),
created with reference to that particular
contract.
If a vendor has price reductions for all
items during a certain period, we can
maintain an info record with reference to a
material group and make general
conditions of reductions.
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TIME DEPENDENT conditions
Time dependent conditions are valid in a
particular time period.
Conditions in info records, contracts and
general conditions are always time
dependent.
We can create price scales depending price
on quantity supplied in these conditions.
No subtotals are formed in time dependent
conditions

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TIME INDEPENDENT conditions

No validity time period entered.

The validity corresponds to particular

purchasing document.

Conditions in purchase order are always

time independent.

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conditions
Quotations and schedule agreements can
have both time dependant and time
independent conditions
It can be customized with the document
types
Header conditions apply to the whole of
document
Item conditions apply only to particular
item of the document
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The price entered in the material
master is not suggested in a PO by
the system.

The system searches for price from a

vendor specific info record followed
by purchase organization specific info
record.
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Conditions can be created in

Info records
Quotations
Contracts
Schedule agreements
Purchase orders
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 Conditions are
not entered in
request for
quotations (RFQ)
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