Supplier-Specific Unit of Measure

You can use this function to define supplier-specific units of measure (UoM) and conversion factors for product items in SAP Supplier Relationship Management (SAP SRM). Suppliers can manually change UoM and conversion factors in a central contract and purchase order to allow them to sell the same product items in different package sizes and quantities.

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 maintained alternative UoM and conversion factors for the product item in the SAP ERP product master and replicated the data to SAP SRM. Examples of UoM are as follows:

Pallet (PAL)
Each (EA)
Dozen (DZ)

Conversion factors are the numerical values used to determine quantities. For example, 1 PAL equals 20 EA. In this case, the conversion factor is 1 multiplied by 20, so 1 pallet delivers 20 each or pieces.

Features

Defining supplier-specific UoM and conversion factors involves the following tasks.

Central Contract Creation in SAP SRM

The purchaser creates a central contract when a long-term relationship is established with a supplier. After the product master data is replicated from SAP ERP to SAP SRM, you can create a central contract and choose the appropriate product master. The UoM and conversion factors from SAP ERP are now available in the contract. You can change the data to suit your specific requirements.

Example Example

System	Supplier	UoM and Conversion Factor
SAP ERP (product master)	A	1 PAL = 20 EA
SAP SRM (contract item)	B	1 PAL = 40 EA

System

Supplier

UoM and Conversion Factor

SAP ERP

(product master)

1 PAL = 20 EA

SAP SRM

(contract item)

1 PAL = 40 EA

End of the example.

Note Note

Only UoM that are maintained in SAP ERP can be changed in SAP SRM.

End of the note.

In this case, different suppliers can sell different quantities of the same product. The values defined on Item level are also transferred to the Conditions tab page. You can define conditions for individual contract items, such as validity periods for a particular unit of measure and conversion factor.

Note Note

It is not possible to change UoM or conversion factors in a released central contract where follow-on documents exist such as, purchase orders.

End of the note.

Purchase Order with Assignment to Central Contract in SAP SRM

When a sales order is created in SAP ERP, the purchaser enters the base UoM and conversion factor manually or the values defined in the product master are adopted. It is then used to generate a purchase requisition, which is replicated to SAP SRM. During sourcing, the purchaser creates a purchase order and the appropriate central contract item is assigned. The supplier-specific UoM and conversion factors that were entered into the contract are updated in the resulting purchase order. All details are replicated from SAP SRM back to SAP ERP.

Example Example

A customer creates a sales order in SAP ERP for 150 bottles of tomato ketchup. As a result, a purchase requisition is created with the UoM Box and is replicated to SAP SRM. The supplier creates a central contract and adapts the details to suit the order. In this case, 20 bottles per box become 50 bottles per box. When the purchase order is created, the contract item is assigned and the resulting purchase order adopts the contract values. To fulfill the customer order, 3 boxes are required.

System	UoM	Result
SAP ERP (product master)	Base UOM = Box Alternative UOM = Bottle	1 Box <> 20 Bottles
SAP SRM (contract Item)	Order UOM = Box	1 Box <> 50 Bottles
SAP SRM (purchaser order)	Order UOM = Box	1 Box <> 50 Bottles
3 Boxes < > 150 Bottles

End of the example.

Purchase Order without Assignment to Central Contract in SAP SRM

You can maintain supplier-specific UoM and conversion factors for a purchase order that is not assigned to a central contract in SAP SRM. You do this by creating a purchase requisition in SAP ERP and distributing it to the SAP SRM system as an external requirement. Using the purchase requisition, you then create a purchase order with a line item by selecting a product for which the UoM and conversion factor has already been defined. You can change these values and send the purchase order for approval.