Vendor Hierarchy and Contract Hierarchy

Hi SRM friends,
Have anyone worked on Vendor Hierarchy and Contract Hierarchy scenario in SRM?
We want to implement GOA (Global outlline agreement)with main vendor and operations supplies from local dealers of the main vendor.
How to implement this process in SRM 5.0 and how to create procurement contract from GOA.
Thanks for your help.
Best Regards
Tushar

Hi,
Hierarchal Contracts can be accessed through Catalog. So when you create hierarchal contracts transfer it to catalog & then you can use those.
Regards,
yaniVy
reward if helps

Similar Messages

Vendor and Contract Hierarchy

I have a question that is about making a link with Vendor and Contract Hierarchy. First it is not clear how I can set the Vendor Hierarchy, I want to upload vendors from R/3 and for that I can create a vendor group and then upload but then how I can make a Vendor Hierarchy and I am not sure that I understand the correct thing about Vendor Hierarchy?
Thanks in advance if you clarify this on going issue in my mind.
Best Regards,
#Bill J.

Hi Bill,
For using Product Cat.\Vendor\Contract hierarchy activate follwing before any data replication in EBP .
Spro->SRM Server->Cross. App.->Activate Hierarchies for Product Categories, Vendors, and Contract .
Regards,
Sachin S M

Customer Hierarchy and product Hierarchy

Hi friends what is customer Hierarchy and what is product hierarchy?
please explain step by step with examples.
mail id: [email protected]
Thanx.

Hi Sirivas,
CUSTOMER HIERARCHY:
Customer hierarchies are available in Sales and Distribution, so that you can create flexible hierarchies to reflect the structure of customer organizations. If your customer base includes multi-level buying groups, cooperatives, or chains of retail outlets, for example, you can create hierarchies to reflect the structure of these groups. Use customer hierarchies during sales order processing and billing for determining pricing and running statistics.
 A customer hierarchy consists of nodes.
 To create a customer hierarchy:
1. Create master records for each node.
2. Assign the nodes to each other.
3. Assign the customer master records to the relevant nodes.
 Hierarchy nodes are only valid for a certain period of time. They may also be moved. If a node is moved, the system automatically reassigns all related nodes and customer master records.
With customer hierarchies, you can assign price or rebate agreements to a higher level node. The agreements are then valid for customers at all subordinate levels to this node. You can create pricing condition records for each node indicated as relevant for pricing. If one or more nodes in the hierarchy path of a sales order contain pricing information, the system takes them into account automatically during pricing.
'How to check'
All the customizing is in SD/Master Data/Business Partner/Customers/Customers hierarchy
All the customizing is in SD/Master Data/Business Partner/Customers/Customers hierarchy
1) Define hierarchy type: just put and ID and a name to the new hierarchy.
2) Set partner determination: if you want to user the hierarchy in price determination, then, in the orders, at the header level, you have to have a Partner Procedure with a partner function for each level. In the partner procedure, in each partner function you must indicate the source partner function. With this information, in the order, you obtain the business partner for each partner function.
3) Assign account groups: you indicate which accounts groups are allowed for being part or your hierarchy.
4) Assign sales areas: simple you indicate which sales areas are allowed in your hierarchy. (Here you can customize common sales areas, just for not having to build de hierarchy in all the different sales areas).
5) Assigning hierarchy type for pricing: you indicate which classes of documents uses hierarchy in pricing determination.
It is possible to maintain so called customer hierarchies. This might be useful when for example you create a condition discount for a customer that is part of such a hierarchy structure. All subnodes in the hierarchy below that customer, will thus receive the same discount.
Customer hierarchy setup, firstly decide the hierarchy type to be used.
The standard is type A.
You can also assign a partner function to the customer so that the higher level customer in the hierarchy is copied into a sales order as a partner function - but you don't need that right?
Next assign your customer account group to the hierarchy type. And enter the combinations that will be allowed for creating the hierarchy.
You want to assign a ship-to to a payer. So enter the ship to account group and enter the payer account group as the higher level.
You must also make an entry for permitted sales area assignments. So if you want to a hierarchy for customers in the same sales area then enter the sales area and enter the same one as the higher level sales area.
All these settings can be found in the IMG. Under SD - master data - business partners - customers - customer hierarchy
You use for example customer hierarchy when you have an company like Unilever and you agree both on a discount. Unilever does have different locations / businesses and you have to maintain the discount for all customers. If you use a customer hierarchy you can maintain the discount for the partner in the top of the hierarchy and in this way it will be valid for all customers in the hierarchy.
Product Hierarchy:
The product hierarchy on the Basic Data screen is used to depict the competitive materials of competitor 1 in relation to those of competitor 2. Here, your own company and its materials are also regarded as a competitor and as competitive materials respectively. You can use this representation as a basis for market analyses.
Normally we enter competitive materials using material type WETT. When entering your own materials as competitive materials, you can, however, display the product hierarchy on the Basic Data screen for other material types too.
Requirement type determination is based on the "Origin of requirement type in requirement type determination"
In this field you can select an alternative search strategy (source):
Source 0 = Material master strategy, then item category and MRP type
Source 1 = Item type and MRP type strategy
Source 2 = Item type and MRP type strategy (as for source 1) with additional check of the allowed requirements type
e.g. If you set value "0" system will first strategy group in material master based on that it will determine requirement type and no value found then it will determine requirement type based on item category and MRP type.
Above settings can be found at SD --> Basic Functions --> Availability Check and transfer of requirement --> Transfer of Requirement --> Determination of Requirement type using Transaction
For make to order std strategy group 20 is used to which req type KE is assigned.
Check
Check in Tcode OVZH, what requirement class is assigned to your requirement type
Check in Tcode OVZG, what value is assigned to field "Consumption" in requirement class because that determines consumption posting.
The product hierarchy is used to group materials by combining different features. It is used for analyses and pricing. A product hierarchy can consist of up to Eighteen characters. Its features can be combined in various ways.
Example: A dishwasher can be described by product hierarchy 000010000200000002. This series of characters states that dishwashers belong to the category electrical appliances (series of characters 00001, position 1-5), and also to wet appliances (series of characters 00002, position 6-10) and, finally, to dishwashers (series of characters 00000002, position 11-18).
One can maintain the product hierarchy via transaction "OVSV" and "V/76.
Path = IMG-Logistics General-Material master-Setting for Key fields-Data relevant to SD-Define Product hierarchy.
The product hierarchy is maintained in the Basic Data view of the material master record, and is used for evaluation as well as price determination in materials management.
The standard SAP allows only 3 levels, but you can go up to 6 levels, for additional 3 levels u will have to take abapper help and add 3 more fields and corresponding data element into structure. So that in material master drop down you will see 6 levels.
The transaction which will be useful to change product hierarchies for material master will be V/76.
Yes, You can print the levels of the product hierarchy through a report.
Use the view SE16 - V_T179 (Table Name) to display Product hierarchy with level numbers.
Field Name is PRODH
Please Reward If Really Helpful,
Thanks and Regards,
Sateesh.Kandula

Difference between Standard Hierarchy and Alternate Hierarchy

Hi
Can anyone explain the difference between Standard Heirarchy and Alternate Hierarchy in Controlling.
Thanks in Advance,
Deepthi.

Standard Hierarchy: It is a hierarchy of cost center groups / profit center groups in which all cost centers / profit centers are gathered together in a controlling area.
In order to create cost centers, you require a structure in master data maintenance to which you can assign cost centers. You create this CO structure, the standard hierarchy, when you create a controlling area. If this hierarchy is not present during controlling area maintenance, the system automatically creates the highest node there.

Alternate Hierarchy: The alternate hierarchy setting in the controlling area enables you to name up to two more alternative hierarchies (according to fiscal year), which can be used for the authorization check in the same way as the standard hierarchy (meaning, that inheritance logic is used). You can also deactivate the standard hierarchy as an authorization hierarchy, and use only the alternative hierarchy.
Regards,
NareN.

Differences between Position Hierarchy and Supervisory Hierarchy

Hi All,
Can somebody tell me the pros and cons of using Position Hierarchy and Supervisory Hierrarchy .
Regards,

If you use the Position hierarchy then you will have to go through the process of defining all of the positions / posts in your organisation and specifying all reporting lines in your organisation from top to bottom. You will then have the overhead of maintaining your positions and position hierarchy and keeping them in line with the business on a day to day basis.
If your organisation is fairly fluid, e.g. a project based organisation or an expanding organisation, these can be very significant overheads. Business re-organisation will create a large workload in creating new positions and migrating employees to them.
If you are in a fairly static organisation e.g. public sector then it may well be that the position structure is well documented and changes infrequently. In this case use of positions and position hierarchies is a simple data entry task and adds significant value.
The supervisor hierarchy is more flexible. It is simply a field held against the person record. However, there is very little validation on it so the you have to put manual processes in place to make sure the data is valid e.g. leavers are replaced and that no loops are created.
I would recommend NOT using positions unless yours is a public sector implementation.
Regards,
Andrew

Customer Hierarchy and Contract

Hi Friends,
I have a requirement - where my client has a customer who is globally located .....every year the Customer Head office gives a contract to my client and the contract is valid across his offices located globally...say one office in UK,one in US,one in Australia.....Referring to the same contracts orders have to be created for the UK ,US customer like wise.
And every time a slaes order is created based on the order from the UK/US customers the qty has to get decreased from the same contract.
Pl share some idea on how to go with this.
Cheers
Ivy

Hi,
As per info. given in the question,There are two levels in Customer's org as far as
Global Head quarter of customer is SP for Contract and it's country branches are SH
or
Global Head quarter of customer is SP for Contract and it's country branches are SP for release order.
[Authorized partners to release the contract|http://help.sap.com/saphelp_erp60_sp/helpdata/en/dd/55fdbb545a11d1a7020000e829fd11/content.htm]
Depending on the scenario you can configure.
In T-code V0V8 you need to select appropriate partner authorization rule in contract section of contract doc.type.
You need to define partner determination procedure for contract.-In customizing Sales-Basic function-Partner determination-set up partner determination.
You need to maintain customer hierarchy master data.V-12
Thanks,
Vrajesh

Vendor code and Contract no determination in CJ20N

hi guys,
we have this problem , whenever user entries material no 20024970, plant FN66 via CJ20N, system will automatically propose contract no 56001127 and vendor code 300164 .. i have checked ME13 and there is no data exists for mat 20024970 and plant FN66 .
Kindly advice on how system does the automatic determination.. thanks

Hi
If a contract Exist for the Material then the price will be propsed from the Contract, Please check the Contract in Transaction ME33K.
As Contract Price has the highest priority for the Acces sequence used for determination of Basic Price.
Thanks & Regards
Kishore

Appl. Hierarchy and Package Hierarchy - what is the Best practice ?

Hi!
We plan to create a Package Hierarchy in our system, but then come to think of the Application Hierachy is built the way we think of building the Package Hierarchy. We planned to build a Main package called fex. HR and below a structure package called HR-PA and below that ordinary packages within that area. But should we rather create our own application hierarchy for this?
Or should we assign the packages to Sap standard application Hierarchy in the HR area ?
What is the Best practice in this area ? Have any tried to create their own hierarchies ?
Regards, Tine

Hi!
You can create your own Application Hierarchy as well .
From ABAP Workbench select Overview->Applic. hierarchy->SAP or Customer
This is what SAP says about this :
The application component hierarchy is a method of splitting up the SAP System from a logical or business point of view. Packages are a method of modularizing the system from a technical point of view. This technical modularization can, but need not, match the logical division of the system. Assignments should be made however between these two views.
Regards, Tine

Combine presentation hierarchy and display hierarchy

Hi,
We have a query with GL account and cost center in the rows. We have a custom-built hierarchy on GL account and next to that we want to display our rows as a display hierarchy. So far so good.
But next we would like to show our GL account hierarchy upside down, meaning with the lower-level nodes above. This setting however is not working in combination with the display hierarchy. I guess the solution would be to also mark the display hierarchy as being "upside down", however as far as I know this is not possible.
Anybody has a solution for this?
Thanks!
Veerle

Hi,
1: To add a new char, add the info object as external chars in the Info object maitainance scree --> hierarchy tab. Then go to create hierarcy option. Now it will add you to insert the info object as a node.
2: Here you are mixing the Units in calculation.So you are getting the error as defined in TCODE RSCUSTV4. So as others given the idea, you can use the Data Function in a Formula (NO Dim).
Happy Tony

0material and 0product hierarchy difference

Hello,
can any one tell Difference between extracting 0material hierarchy and 0Product hierarchy
0material pulls from MARA table
0Product pulls from MVKE table
so which one is more suitable to report on and what are the reasons for pulling from MARA or MVKE.
thanks

Well it dont work that way,
can anyone atleast give me the technical names available in infopackage in BW as to where to check that in R/3 tables
for example i have 0mat_sales with hierarchy technical name MATNR ,where do i check in R/3 to verify the same.
OVSV and V/76 do not give me the details.
so how do we know what hierarchy functional guys are using??

Position Hierarchy Vs Organization Hierarchy

Hi
Our organization is position driven organization. I want to know what are the main advantages and disadvantages for Position Hierarchy and Organization Hierarchy.
Because on top the hierarchies we will create security profiles.
Can I have any document where I can find the comparison between both of these hierarchies.
Thanks
Gaurav

No, the supervisor hierarchy is constructed simply by specifying supervisors on assignments.
Added complexity can be added to the supervisor hierarchy in a multi assignment environment; you can then specify a 'supevisory assignment' as well but that is rare.
It sounds like you will be invariable be drawn into using Positions. Having a 1-1 relationship between positions and employees is not unusual but be warned it can be extremely time consuming to maintain. I have been to organizations where position maintenance is virtually a full time job for a member of staff.
If you are using Appraisals, definitely make use of the supervisor hierarchy, it is hard enough to implement correctly as it is without making it harder and trying to use the position hierarchy.
You should be able to use the supervisor hierarchy for the OTL and iRec approval processes too but I'm happy to defer to other experts on the forum for those.

Vendor Hierarchy and purchase orders

Hi,
We have activated the vendor hierarchy and it's working in purchase order, but we want to control the same. for Example, we have assigned X and Y as goods suppliers in Vendor Master of A in partner function.
and system shows the same when we create purchase order but we can skip it or change the name of goods supplier in purchase order which we don't want to do,
So pls help us how can we control the same, we want in purchase order, we can assign only a goods supplier which will be either X or Y not beyond that.
Pls advice.
Thanks
Sandeep

Go to IMG - Material management - Purchasing - Partner determination - Partner setting in Purchasing document - Define Partner schema..
Here make a partner schema with GS (Goods supplier) as No Change...
Then go to the next step i.e. Assign partner schema to Document type..
Here assign the schema created it the previous step to the document type u want (for eg. NB - standard PO... Assign the schema created)
This will not allow you to change supplier field in standard PO.
Regards,
Mayank
*Assign points if it helps.

Contracts and Customer hierarchy

Hi Friends,
I have a requirement - where my client has a customer who is globally located .....every year the global customer gives a contract to my client and asks to ship the material across his offices located globally...say one office in UK,one in US,one in Australia....sometimes the order may come from the customer from US/UK ....referring the same contract.
And every time a slaes order is created based on the ordereafrom the customers across the world the qty has to get decreased from the same contract.
Shall i need to have a customer hierarchy and in that case can i refer to the same contract........or do i need to create a on single contract on the main customer and add the reamining customers as partner functions .......i am not sure how to go on with this ....please help me out
Cheers
Ivy

Hi Ivy.
In this scenario, there has to be a customer hierarchy, as the highest level of customer will be as parent customer and lower levels will be child customer. As you may need it in credit control also.
For contracts lets wait for other consultants to answer, as i am not sure of it.
regards
Bidhu Bhusan Samantaray

ECC Contract Hierarchy

Hi,
How best can we use Contract Hierarchy in ECC 6.0 ?
Has anybody mapped this process?
Please share your inputs.
Thanks in advance.
Regards,
Anil Rajpal

dear Anil
we can Map contract hierachy in ecc6.0 there is not much diffrance in previous version and new version of sap for contract herachy , we have upgraded our system from 4.7 to 6.0 , and have seen the mapping ...
for example
1.) Distributed Contracts :
In the SAP system of the "Metal Corporation" in Pittsburgh, a contract for 10,000 tons of "steel 1" is created without specification of a plant under the agreement type "VK" (distributed contracts).
The company has a plant in Minneapolis, another one in Atlanta, and a subsidiary, "Southern Metal Co.", in Houston. The latter represents a separate company code. The Metal Corporation is the central system, the Minneapolis plant is local system no. 1, the Atlanta plant is local system no. 2, and the subsidiary (Southern Steel) is local system no. 3
The central SAP system makes the contract available to the local systems, that is to say, it distributes it to enable the latter to procure material "steel 1" by issuing contract release orders. The contract is transmitted to the local systems by means of an intermediate document (IDoc) via ALE, and is imported into each individual system.
The Minneapolis plant (local system 1), issues a release order for 2,000 tons of steel 1 against the contract. After this, the quantity that can still be released against the contract is 8,000 tons.
This information must be passed on to the central system. For this purpose, an IDoc is transmitted to the central system, causing the release order documentation there to be updated. At the same time, the release order documentation is updated in the local system that issued the release order (quantity released: 2,000 tons).
The Atlanta plant creates the next contract release order for 1,000 tons. As a result, the release order documentation is updated both centrally (quantity released according to Pittsburgh documentation: 3,000 tons) and locally (quantity released according to Atlanta documentation: 1,000 tons).
The release order documentation in the local systems is limited to the relevant entity's own release orders. Only in the central system is data on all release orders consolidated in collective release order documentation.
This means that the central system has control over the degree of fulfillment of the contract.
As soon as the complete quantity has been released against the contract, the blocking indicator is set in the central system, thus preventing the creation of any further release orders.
The subsidiary (which represents a separate company code) can issue release orders against the central contract in the same way as the plants, provided that it uses its own purchasing organization with the appropriate company code assignment in doing so.
2.) Centrally Agreed Contract
It is possible to create contracts that do not relate to just one particular receiving plant. In this case, a centrally agreed contract is created without specification of a plant. The plant is not specified until a contract release order is created.
You can maintain different conditions for individual plants in the central contract or different ordering addresses or goods suppliers in the vendor master record, for example.
An enterprise with a central purchasing department (= Reference Purchasing Organization) buying materials for several plants can agree a high-level contract which may apply to a vendor's entire corporate group and which can be utilized by other purchasing organizations within the enterprise. The use of such centrally agreed contracts usually results in more favorable conditions of purchase. (Outside SAP, such contracts may also be referred to as "national", "group", or "corporate" contracts.)
A centrally agreed contract is involved if:
A single purchasing organization procures for an entire corporate group, or
A reference purchasing organization makes a contract available to other associated purchasing organizations, enabling the latter to issue release orders against this contract
for example
Vendors may assume different roles (partner roles) in the procurement process. Partner roles (sometimes also referred to as "partner functions") include the roles of "ordering address", "goods supplier", and "invoicing party".
The partners you can store in the vendor master record in the Partner Roles view apply to a certain purchasing organization.
In addition to the partners that are valid at purchasing organization level, you can maintain different partners for individual plants or vendor sub-ranges. In this case, the system will determine a different ordering address in a purchase order for your Atlanta plant than the one determined in a purchase order for your Minneapolis plant, for example.
Two individual vendors belonging to the vendor corporate group X supply receiving plants in different regions. In the vendor master record, the receiving plants have been assigned as follows: vendor X2 supplies plant 0001 only, and vendor X3 plant 0002 only.
If a buyer wishes to release material 4711 against the centrally agreed contract with vendor corporate group X, he or she enters the key for the plant for which the material is to be procured.
If he or she enters plant 0001, the system determines vendor X2 as the ordering address on the basis of the assignment in the vendor master record.
If he or she enters plant 0002, the system determines vendor X2 as the ordering address on the basis of the assignment in the vendor master record.
You can also assign several partners with the same role to a plant (e.g. two ordering addresses). When you create the release order, you are then asked to decide on one of them.
reward points if helpful
thanks and regards
ravikant dewangan

Product Hierarchy and Assortment Module?

Hi,
Can anyone throw some light on Product Hierarchy and Assortment Module?
Regrds,
Binayak

Hi,
Product Hierarchy:
Product Hierarchy is used to group the materails by combining features. It is used for analyses and pricicng. A produch hierarchy can consist of upto 18 characters. Its features can be combined in various ways, the following figure gives an example of how materials can be grouped using product hierarchy.
Product Hierarchy: Electrical Appliances(00001): 1. Dry Appliances(00001), 1.1 Electri Stoves(00000001), 1.2 Food Processors(00000002); 2. Wet Appliances(00002), 2.1 Washing Machine(00000001), 2.2 Dish washer(00000002).
In this case, a dish washer can be describered by product hierarchy 000010000200000002.
This is called as Product Hierarchy.
Assortment Module:
This is one type of Value contract using assortment module (Contract Type: WK1). Firstly we have to create Assortment Module using T.code: WSO1, and enter the group of material in the assortment module and save. and then create contract and assign the Assortment module number in the contract and enter the value and save the document. after that is same like other contract.
Hope i have answer your question
Reward if it helps
Regards
Prasanna R

Vendor Hierarchy and Contract Hierarchy

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