What is basis contract in SAP LO-AGR-LSP - Livestock Procurement?

SAP Term: basis contract

• Component: LO-AGR-LSP

• Component Name: Livestock Procurement

• Description: A short-term agreement about quantity and basis price of livestock. The purchase documents between supplier and meat packer are created in reference to a basis contract. The futures and basis components price of the livestock is also captured within basis contract. In this document, the price of livestock is driven either by the commodity market or a flat price is decided based on negotiation between livestock supplier and meat packer.

Smart SAP Assistant

• Key Concepts: 
  A basis contract in SAP is a type of contract used to define the terms and conditions of a livestock procurement agreement. It is used to define the price, quantity, and delivery date of the livestock being procured. The basis contract also defines the payment terms and any other conditions that must be met in order for the agreement to be valid.
  
  How to use it: 
  In order to create a basis contract in SAP, you must first create a purchase order for the livestock you wish to procure. Once the purchase order is created, you can then create a basis contract by selecting the “Create Basis Contract” option from the menu. You will then be prompted to enter the details of the agreement, such as the price, quantity, and delivery date. Once all of the details have been entered, you can then save the basis contract.
  
  Tips & Tricks: 
  When creating a basis contract in SAP, it is important to ensure that all of the details are accurate and up-to-date. This will help ensure that there are no discrepancies between what was agreed upon and what is actually delivered. Additionally, it is important to review all of the terms and conditions of the agreement before signing off on it.
  
  Related Information: 
  For more information on creating basis contracts in SAP, please refer to SAP Help documentation or contact your local SAP support team. Additionally, there are many online resources available that provide detailed instructions on how to create and manage basis contracts in SAP.