Many vendors offer special prices (the distributor’s cost) for items or groups of items. You can use Cost Contracts to more accurately track special prices to reduce errors and ensure that all available price breaks are taken.
Access Cost Contract Entry (POE510) to enter contracts. When you add lines to purchase orders, the default cost is calculated. If you override that cost during the entry process, the cost override flag is set and the origin of any cost entered is captured and stored in the purchase order line item file. That cost and origin is also transferred to the past purchase order line file. You can view the cost origin in the line detail of the PO Document Inquiry or during line detail in the PO entry programs. Use the Contract Listing program to print the detail of contracts that are on file. As contracts expire, they can be purged using the System Clean Up F/M (SMF993) program. Inquiries are available for viewing contracts on file for a vendor.
You can access these programs from the PO Cost Contracts menu:
Cost Contract Entry (POE510), which is used to enter contracts for specified vendors.
Cost Contract Listing (POR510), which is used to print the detail of contracts that are on file.