Product Category Contracts

Question

Hi,
I have a few questions on Contracts in SRM
If I select Normal line type, the system requires Product, unit price, target quantity/value for auto sourcing of the shopping carts
but if I select Item Category of the line as Product Category, there is no unit price, product, so how do these contracts work in sourcing of the shopping carts? and how are these type of contract useful?
On the contract header, there is a "Basic Contract" field, what does it mean and when I select it, this contract is showing up for all the unsourced shopping carts? so what is the real use of this field?
Thanks,
CS

Answer 1

Hi CS
As per standard for material grouo contract , release quantity will not be displayed.
PRODUCT CATEGORY TURNS INTO ITEM CATEGORY W IN ECC IF YOU DISTRIBUTE GOA TO ECC
Item Category W (Material Group)
Item category W allows you to enter a material group without entering the value or quantity of the contract item. Item category W is for value contracts only.
Consider a contract for cable. The contract covers every type of cable on the vendor's price list. The exact type of cable is known only at the time a specific cable is ordered.
Instead of entering an item for every type of cable the vendor is able to supply, you could enter item category W and the material group (say, CABLE). The short text would indicate that the contract item covers all types of cable supplied by the vendor.
Each release order issued against this contract would then specify the actual type and quantity of cable (for example, double-shielded coax, 1 spool) as well as the price.
How Do You Use Item Category W?
When you create the contract item, enter the item category W, the short text, and the material group. You do not enter a price or conditions for the item. However, it is possible to specify conditions in the document header. For example, you can enter a discount in the header conditions if the vendor grants a discount on all Pos relating to the contract. The discount is automatically taken into account when the release order is created.
You can enter a material number in the contract release order. The corresponding material master record must be assigned to the same material group specified in the referenced contract item. If the release order does not have a material number, then it must contain a valid account assignment, such as a cost center.
Basic Contract
If you set this indicator, the contract only has header information and conditions and no line items. Basic contracts cannot be distributed to the catalog.
SOME BUTS FROM sap
SAP Note 892491 - Basic contract flag in GOA
Symptom
While executing Transaction BBP_CTR_MAINCC (Process Global Outline
Agreement) Basic contract flag should not be there while creating
Purchasing Contract.
are you expecting here like screen control w.r.t contract document type in srm?
br
muthu