This program allows you to enter cost contracts for vendors. You can store cost contract information by vendor, including costs that get calculated from other values, like list price. Cost contracts establish the default cost that gets entered on purchase orders.
Cost contracts can be based on specific items, items of a specific cost class, or all items, and the default cost must be selectable by vendor. Contracts can be specific to a warehouse or valid for all warehouses, and they can only be valid when selling to a specific customer (via a special order).
When you specify contract lines, the Scope determines the entry fields that display (e.g. Item or Cost Class). After you specify the warehouse, effective date, scope and customer information, the system displays the Contract detail screen so you can specify quantity break/costing information for the contract line.
For each vendor, you can specify which contract scopes take precedence on the Costing view of Vendor F/M (APF910). The Contract Scope options are "specific item contracts", "cost class contracts", "all item contracts", and "standard cost (per PO Static Control)".
You can set the order in which the costs are considered, so that if the first one isn’t found the next one is taken and indicate whether the lowest cost is always taken, regardless of the hierarchy.
Cost contracts for the specific warehouse placing the order are always considered before contracts for all warehouses (unless the select lowest flag is set and an "all" warehouses contract is lower than the specific warehouse contract).
Cost contracts for the specific customer being sold to on a special order PO are always considered before contracts that aren’t for a specific customer.
Cost contracts are selected in the following order:
Specific Customer Contracts per the hierarchy – check required flag
Specific Warehouse Contracts per the hierarchy
All Warehouse Contracts per the hierarchy
Click Field Descriptions for information on each field.