What is central purchase contract hierarchy in SAP MM-PUR - Purchasing?

SAP Term: central purchase contract hierarchy

• Component: MM-PUR

• Component Name: Purchasing

• Description: A legally binding purchase agreement that enables large enterprises to consolidate the requirements across various business groups. It distributes the elements of the contract by grouping requirements per business group into subordinate central contracts. A central purchase contract hierarchy is a variant of the central purchase contract.

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• Key Concepts: 
  A central purchase contract hierarchy is a feature of the SAP MM-PUR Purchasing component. It is a tool used to manage and organize purchase contracts in a hierarchical structure. This structure allows for better control and visibility of the contracts, as well as improved efficiency in managing them. 
  
  How to use it: 
  The central purchase contract hierarchy can be used to create a hierarchical structure for purchase contracts. This structure can be used to group contracts according to their purpose, such as by supplier, product type, or region. The hierarchy can also be used to assign different levels of access to different users, allowing for better control over who can view and edit the contracts. 
  
  Tips & Tricks: 
  When creating a central purchase contract hierarchy, it is important to consider how the hierarchy will be used. Think about how the contracts will be grouped and what level of access different users should have. This will help ensure that the hierarchy is organized in a way that is most effective for managing the contracts. 
  
  Related Information: 
  For more information on the central purchase contract hierarchy, please refer to the SAP Help Portal or contact your local SAP representative.