To this combined material and vendor master data, the negotiated conditions (e.g. price, surcharges, discounts, cash discount) are entered in the purchasing info record. The conditions may be time-dependent or time-independent. As the name suggests, the time-dependent conditions are set to a certain validity period. The time-independent are valid as long as the purchasing document has to be valid.
When source determination is fully implemented at the company system, the buyer can thus rely on the best terms and conditions for procurement.
In the purchasing info records the order price history is updated by the activation of the info update indicator and thus material prices are saved from the existence of the info record. This is among other things a very useful data analysis approach, with which one can identify blatant price developments in the purchasing info records. Atypical price fluctuations of the material or constantly rising prices can be taken as an opportunity to negotiate new terms or to change supplier.
As in many areas of SAP, it makes sense to consider segregation of duties topics too. No employee should be able to insert all necessary master data (material, supplier, info record) and to initiate a purchase requisition. In general the number of employees who are allowed to make changes in these areas should be limited, because the source determination could be affected.
In conclusion, we can note that the purchasing info records are a good support for the purchase. Very often it brings the company favorable terms or prioritized delivery advantages. Similar to outline agreements, the mindset "always been that way" should break through and reconsider agreements on necessity and usefulness. For example, the costs of materials in the production procurement in the area of renewable energy reduced drastically. "Old" agreements may thus have a direct impact on the competitiveness of a company.
If you have any questions on this topic or want to place a comment, feel free to contact me on email@example.com.
Best Regards Florian Popan