Order Types and Mixed-Use Purchase Orders

You can use order types if you want to combine line items that you definitely order with line items that you want to realize later by creating follow-on orders, as you would do with items in a contract. The purchasing document that lets you create both order type line items and standard, definite types of line items in a single document is the mixed-use purchase order.

In Customizing, you can freely specify order types and their names to suit your business requirements. However, independent of the names of the order types, all line items with the order type attribute have the following characteristics that are typical of contract line items: When creating the order type line item, you can leave certain details unspecified, for example, the delivery address and the account assignment. Instead, you can state a target quantity and possibly a guaranteed minimum value. When concrete requirements for the item arise, you can create new release orders against that line item for the requested quantity and with the designated account assignment.

Integration

You can use this function in the following business scenarios:

Public Sourcing and Tendering
Contract Management and Administration
Operational Procurement
Procurement Services

Prerequisites

You have activated the business function SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1). Note that you can only use this business function in conjunction with the business function SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1). In other words, you must activate both business functions.

You have done the following in Customizing for SAP Supplier Relationship Management under Start of the navigation path SRM Server Next navigation step Cross-Industry Functions Application Settings Order Types End of the navigation path :

You have created an identifier and a semantic description for each order type that you want to use, for example IDIQ for Indefinite Delivery Indefinite Quantity. You do this in the activity Define Order Types.

Note that in this activity, you can also deactivate the order type. By doing this, you ensure that the order type can no longer be selected. However, it is still visible in existing procurement documents to reflect the history of the procurement document.
You have specified in which type of procurement document business users can use order types. You have also specified whether the values of the order type line items are included in the total value on the document header. You do this in the activity Define Transact. Types for Order Types and Their Influence on Header Values.
If you want to allow purchasers to specify a guaranteed minimum value, you have activated the related fields and tabs in Customizing for SAP Supplier Relationship Management under SRM Server Procurement for Public Sector Functions Application Settings Guaranteed Minimum Activate Tabs and Fields .

If you use guaranteed minimum, you can also implement the following BAdIs in Customizing for SAP Supplier Relationship Management under Start of the navigation path SRM Server Next navigation step Cross-Industry Functions Application Settings Order Types End of the navigation path :

Compare Guaranteed Minimum of Contract or PO with Minimum Value
Fill Guaranteed Minimum of Contract or PO with Minimum Value

Features

Order type line items have the following features:

Definition of Details in Release Order

In order type line items – as in contract line items – you can leave many details undefined when creating the item, for example:

Delivery address
Delivery date
Account assignment

Only when you create a release order must you make a definite decision and specify these details. This is common to all order type line items. In Customizing, you can create various order types with different names, depending on the semantic meaning that you intend to convey by the name. However, they do not differ in their technical, “contract-like” characteristics.

Availability in Procurement Documents

Business users can select order types, for example “Indefinite Delivery, Definite Quantity”, in the following procurement documents:

Document	Location Where You Select Order Type
Shopping Cart	Item Overview
RFx	Item Data Note: When you create an RFx, you can select an order type. On their RFx responses, bidders can only create a response using the same order type, they cannot change the order type.
Purchase Order	Item Overview and Item Details General Data
Contract	Item Details General Data

Order Types in Purchase Orders

For order type line items, the following additional UI elements (fields, groups of fields, or tabs) are available:

UI Element	Purpose	Location (Item Level)
Minimum Value field	Minimum total amount that you intend to order against this line item	Item Details General Data
Minimum Quantity field	Minimum total quantity that you intend to order against this line item	Item Details General Data
Maximum Order Value field	Maximum value that you are allowed to order in a single release order	Item Details General Data
Maximum Order Quantity field	Maximum quantity that you are allowed to order in a single release order	Item Details General Data
Target Value field	Total value for which you intend to order products in one or several release orders	Item Details General Data
Target Quantity field	Total quantity that you intend to order in one or several release orders	Item Details General Data
Guaranteed Minimum group of fields	Minimum amount for which you intend to create release orders. For more information. see Guaranteed Minimum.	Account Assignment tab
Releases tab	Details of release orders that have been created against this line item. The information includes, for example, the document numbers, dates, quantities ordered, and values.	Tab is displayed at item level.

Order Types in Contracts

If you select an order type in a contract line item, the following of the above fields are also displayed on the General Data of the line item:

Minimum Value
Minimum Quantity

If you create an order type line item in a contract, the order type does not change the behavior of the line item since all order type line items are typical of contract line items in that several details can remain undefined.

The main benefit of using order types in contracts is that you can use this attribute in sourcing. By implementing the BAdI /SAPPSSRM/SOS_BADI, you can identify contract line items with specific order types and, for example, display them at the top in the list of proposed sources of supply.

Funding and Follow-On Processes

Order type line items remain unfunded. This means that you do not have to specify account assignment information until you create the release order. If you use SAP ERP Funds Management, funds are only reserved when you create a release order. Follow-on processes, such as goods receipt and invoice receipt, are triggered by the release order, not by the order type line item.

Considerations Regarding Order Types

Note the following aspects of order type line items:

When creating a mixed-use purchase order, you must include at least one definite line item. If want to create a purchasing document with order type line items only, use a contract instead of a purchase order.
If you use hierarchical line items, note the following:
- Below non-order type line items, you can create subline items with or without order types.
- Below order type line items, you can only create subline items with order types.
You can create an order type line item and make it optional. However, you cannot use the option type surge option. For more information about options, see Options.
Regarding the availability of order type line items in sourcing, note the following:
- Order type line items in contracts are automatically suggested as sources of supply by the sourcing logic.
- Order type line items in purchase orders are not automatically suggested as sources of supply by the sourcing logic.

Example

You want to order a software solution. You do this by creating the mixed-use purchase order shown below. Your company uses the following order types:

“Indefinite Delivery Indefinite Quantity (IDIQ)”
This order type means that a definite quantity and the delivery address are specified in the release order.
“Requirements”
This order type represents an exclusive arrangement with a supplier for a particular commodity or service. The line item itself has maximum values regarding quantity and the monetary amount.

Your purchase order includes the following data:

Line No.	Order Type	Description	Quantity	Unit	Target Value	Guaranteed Minimum Amt
0001	n/a	Software Licenses	5000	EA	$ 3000	n/a
0002	n/a	Custom Development	1	EA	$ 100000	n/a
0003	IDIQ	Software Installation	1	EA	$ 100000	n/a
0004	IDIQ	Additional Licenses	10000	EA	$ 5000	n/a
0005	Requirements	Training	n/a	Hrs	n/a	$ 500

More Information

Creation of Release Orders Against Order Type Line Items