Overview of Sources of Supply

 

The following are the various sources of supply:

● Purchasing info record

The purchasing information record is part of the master data of the purchasing department. It contains data concerning the relationship between a material and a vendor / a material group and a vendor.

 The conditions in the info record are maintained at the purchasing organization level or at the purchase organization plant level. 

The conditions and other data stored in the info record are used as default values in documents such as purchase orders.

● Outline agreement item

An outline purchase agreement is a long-term agreement between a purchasing organization and a vendor covering the supply of materials or the provision of services subject to predetermined conditions. These apply for a predefined period and a predefined total purchase quantity or certain total purchase value. The two types of outline agreement are contracts and scheduling agreements.

● Plant

An external procurement can be made by stock transfer from another plant. In this case, we do not need to maintain any special data in Purchasing, because normally an internal settlement will take place. However, it is also possible to create plants as vendors. To do this, a plant assignment must be entered when maintaining the vendor master record.