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 enter contract lines, the Scope determines the entry fields that display (e.g. Item or Cost Class). After you enter the warehouse, effective date, scope and customer information, the system displays the Contract detail screen so you can enter 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
Use the following fields to enter contract header information:
1. Vendor
Enter the vendor for this contract. Press F2 or the
icon to search for vendors. If contracts already exist for this vendor, the system displays them by the effective date order in the list view in the lower portion of the screen. At the bottom of the screen, you can enter a date in the List from field to limit the display by effective date.
2. Warehouse
Enter the warehouse for this contract. Press F1 or 
to default to ALL. Press F2 or the icon to search for warehouses.
3. Effective Date
Enter the effective contract date
4. Scope
Enter the item scope of the contract. You can select from I-Specific Item, C-Cost Class, or A-All Items. Press Enter (CR) to accept A, the default.
If you select I, the next prompt is Item. If you select C, the next prompt is Cost Class. If you select A, the system disables the next prompt.
5. Item/Cost Class
Enter the item for this contract. Press F2 or the icon to search or F4 to back up.
-or-
Enter the cost class for this contract. Press F2 or the icon to search or F4 to back up.
6. Customer
Enter the customer for this contract. Press F1 to enter N/A, F2 to search for customers, or F4 to backup. Enter customer number for contracts used for special orders (i.e. a purchase order tied to sales order). If you enter a customer number for the cost contract, then it is available only for special orders for the customer indicated.
Once all header fields have been entered, the program determines if the contract is already on file or if it overlaps another contract with the same scope. For new contacts, the system displays the Contract Detail screen for line entry on the contract.
In the list view in the lower portion of the screen, the system displays any existing contracts
Use the Contract detail screen to enter quantity break/costing information for the contract line.
If the contract is not for a specific item, you can enter the basis and multipliers.
You can enter a single level contract (i.e. a contract that applies to any quantity purchased) by leaving the first quantity break set to blank, and doing so, all other breaks are disabled. If you enter a quantity, all breaks are enabled.
If the contract is for a specific item, you can enter a fixed cost or a basis/multiplier, but all breaks must have the same kind of costs (i.e. all fixed or all basis/multiplier).
Each quantity must be progressively larger. If you leave a quantity blank, all subsequent breaks are disabled.
Once you have designated an item cost as fixed cost or basis/multiplier, you cannot change the type. You can edit the fixed cost, basis and multiplier values, but you must delete and reenter the contract to change it from a fixed cost to a basis/multiplier cost or to add/remove quantity breaks.
Effective and expiration dates cannot overlap for contracts with the same scope (including warehouse, scope and entity, and customer).
Use the following fields to enter contract line detail information:
Quantity Breaks: The first break can be either a fixed cost or a basis and multiplier. The second break can be the same as the first or it can be a basis and multiplier even if the first is fixed. The only restriction for the second one is that it can’t be fixed if the first is a basis and multiplier. Breaks three through six must be the same type (fixed or basis and multiplier) as the second.
1. Expiration Date Prompt
Enter the contract expiration date. Press F1 or 
for None, F4 toBackup If the date causes the contract to overlap another contract with the same scope, a message will be given, and a new date must be entered.
2. Required
Indicate whether this is the required cost when selling to this customer. If you select this checkbox the system uses this contract cost even if the Use Lowest Cost checkbox is s elected on the Costing view of Vendor F/M (APF910).
3. Quantity Breaks
Indicate whether to include quantity breaks for cost information.
If you select the Quantity Breaks checkbox, for level 1:
Enter the quantity for break 1. Press F1 or to enter None or F2 or 
to change the UM, or F4 to backup. You can leave the quantity blank, and if it is, all remaining breaks are disabled and blanked. If this is the first break and the value is left blank, you can still enter a cost. But if you enter a blank in the quantity of subsequent breaks, you cannot enter a cost.
The quantity must be greater that the previous break’s quantity.
You can press F2 or to change UM only for the first break and only when the scope is for a specific item. Press F1 to set the field to blank and move on to next field. Press F2 to select any valid buying UM for the item. If quantities are already entered, the system converts the quantities to the new UM.
4. Fixed Cost
Enter the contract cost. For Break 1, you can press F1 to enter Basis/Multiplier instead. Press F4 to backup. This field is only available if the scope is for a specific item.
The cost entered should be lower than the previous break’s cost, and if it isn’t, the system displays a message indicating this.
5. Basis
Enter the basis for the contract cost. You can press F1 to enter a Fixed Cost or F4 to backup. For the Basis you can select from: M--Manual Cost, L--List Price, 1--Quantity Break 1, 2--Quantity Break 2, 3--Quantity Break 3,4--Quantity Break 4, or 5--Quantity Break 5 (if quantity breaks exist).
If you enter M, L, or P, the system goes to the Multiplier prompt. The default value is L for the first break, but subsequent breaks default to the previous break’s basis. Options 1-5 are only valid for breaks 2 through 6, and the only ones available are the breaks prior to the current break, so for break 4, you have the option of breaks 1 through 3 as the basis.
6. Multiplier
Enter the multiplier. Press F4 to backup.
7. Memo
Enter the contract memo. Press F4 to backup.