Master conditions in SAP are conditions that determine the effective price in the purchase order. They serve as a central repository of pricing for purchase orders. They are automatically included in the price calculation in the purchase order if the PO references a contract or an info record, or if it meets certain criteria defined in the extended conditions.
There are three types of master conditions in SAP,
Conditions in contracts – Conditions in a contract apply to all release orders issued against the contract.
Conditions in info records – Conditions in the info record apply to orders that specify the material and vendor contained in the info record.
Extended conditions – These are a flexible way of setting vendor pricing. Extended conditions are master conditions that are included in the price calculation in a purchase order only if the PO meets certain criteria. One way to use extended conditions would be to define a 10% discount on all orders placed with a specific vendor that are created by a certain purchasing organization. In this case, the vendor number and purchasing organization are the two criteria a PO must meet before the price in the PO can be calculated.
Extended conditions are more flexible than master conditions in info records or contracts because you can define which criteria they must meet before they are applied to a purchase order.
The documentation on outline agreements and purchasing info records shows how the conditions specified in outline agreements and purchasing info records, respectively, influence the calculation of the effective price in the purchase order.
The next post will learn how to specify conditions that apply to the pricing of all orders for any material with a vendor, not only for a specific material or material group as is the case with outline agreements and info records.
Also See: What is Condition Technique in SAP?
Recommended Reading For You
- SAP Purchasing info Records Types?The purchasing info records is source of information for purchasing. It contains information on a specific material and a vendor supplying the material. For example, the vendor's current […]
- What is request for quotation (RFQ) in sap?The request for quotation (RFQ) is an invitation to a vendor to indicate his terms and conditions (in particular, his price) for the supply of a material or the provision of a service by […]
- What is Scheduling agreement in SAP MM?The scheduling agreement has similarities with a quantity contract: it states the target quantity of a material to be ordered from a vendor over a period of time, and the price. For each […]
- To Create Purchasing Information Records for material with Material MasterPurchasing Information Records (Info records) are maintained as Master data, just as Material and Vendor master data is maintained. Info records may be created for materials that have a […]
- How To Create Purchase Info Record SAP?Purchase Info Record: Info records are created automatically when the user orders a material or update a price quotation from a vendor, but can be also created, changed or deleted […]