What field must be maintained before you can execute the Purchase Contract (BMD) process? Note: There are 2 correct answers to this question.

Question

Options

• AWarehouse number
• BSupplier
• CPurchasing organization
• DPurchasing info record

• A
  4% (2)
• B
  89% (51)
• D
  7% (4)

Explanation

To execute a Purchase Contract (BMD), you must identify who is responsible for buying (Purchasing Organization) and who you are buying from (Supplier) - these two fields establish the fundamental parties to any contractual agreement and are mandatory header-level fields before the document can be processed. Without a purchasing organization, the system cannot determine which organizational unit owns the contract; without a supplier, there is no counterparty to contract with.

Why the distractors are wrong:

• Warehouse number (A) belongs to Warehouse Management (inventory storage logic) and has no bearing on contract creation - contracts operate at the procurement level, not the physical storage level.
• Purchasing info record (D) is a useful reference document that can result from or inform a contract, but it is not a prerequisite; contracts can be created independently of info records.

Memory tip: Use the acronym "SP" = Sign a Purchase agreement - Supplier and Purchasing organization are the two parties that must exist before any contract can be signed or executed.

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