Question no 4006 : Purchasing Central Contract

In SAP Material Management as at ECC6 EhP8, which of the following are possible for a Central Contract ? 

(more than one answers)

A. The Central Contract is created without a Plant.
B. Plant specific Conditions are possible.
C. The Purchasing Organization for the Central Contract can be different from the Purchasing Organization that issue the Purchase Order Release against the Contract.
D. Same or different Contact Validity Periods are required to be entered for each Contract items.
E. Both Quantity Contract and Value-based Contract can be created for a Central Contract.

Answer: A, B, C, E

A)  TRUE.

A Central Contract can be created without a Plant, Purchase Requisitions or Purchase Orders can be issued by other Purchase Organizations (need not be the Central Contract's Central Purchasing Organization) with reference to the Central Contract. The is also TRUE for RFQ where the RFQ can also be created without Plant, the accepted Quotation (without Plant) can then be used to generate Purchasing Info Record without Plant.

B)  TRUE. 

For Central Contracts, each Contract item can have Plant specific conditions (which is optional). When issuing Purchase Orders with reference to the Central Contract, the Plant conditions in the Central Contract can then be copied to the Purchase Order item level depending on the Plant in the PO item. However, it is also possible to have just one Pricing Condition in the Central Contract for ALL the Plants. 

Another method is to setup Purchasing Info Record by Local Purchasing Organizations for their own Plants which can be read into the Purchase Order created with reference to the Central Contract.

C)  NOT TRUE.

A Central Purchasing Organization (either without Company Code assignment or with Company code assignment ie: cross Company or Company Specific) can be used to create the Central Contract while the PO release against the Contract can be issued by another Purchasing Organization.

D)  TRUE. 

Validity period is at the Contract Header level for both Quantity Contract or Value-based Contract. There are NO Validity Period at the Contract item level; however, item level Pricing Condition may have validity periods for Pricing Conditions only. 

E)  TRUE. 

It is possible o create Central Contract without Plant for both Quantity and Value-Based Contract scenario. For Quantity Contract, PO released cannot be more than the total Quantity in the Contract while for Value-based Contract, PO released cannot be more than the total Value in the Contract; and both are possible for Central Contracts.