16. Outline Agreements

Question 0

2. Outline agreements (5):

Answer 0

1. Various sales doc types rep diff outline agreements
2. Customers/vendors agree on goods under certain cond and timeframe
3. Two main outline agreements are scheduling agreements and contracts
4. Simplest most common sched agreement is doc type DS
5. The two contract types are value and quantity and can cover goods and services

Question 1

1. Contents (3):

Answer 1

1. Scheduling agreements
2. Quantity contracts
3. Value contracts

Question 2

3. Sched agreements (4):

Answer 2

1. Sched agreement has fixed deliv dates and quantities between you and sold to for a certain validity period
2. Dates are in the sched lines of the agreement and deliv are created manually or via due list
3. Sched lines individual item quantities are added and compared with target and shipped quantities to show open quantities and issue warning when qty exceeds target qty
4. You can use collective invoice to combine all deliv due for bill and run invoicing process periodically

Question 3

4. Quantity contracts (5):

Answer 3

1. Sched agreement between you and customer for a validity period that does not contain sched lines, deliv quantities or deliv dates
2. Contains pricing, deliv times and functions available in orders
3. Release orders are processed as std orders w/ reference to contract and are used to create sched lines and copy contractual pricing and deliv dates
4. Update contract’s balance via doc flow recorded after release order creation
5. Define in copying control which sales doc types can be used as release orders

3.

Question 4

5. Release order creation (4):

Answer 4

1. Via initial screen: choose create w/ ref
2. Via menu sales doc: sales doc/create with refer/contract
3. Retroactively: assign order item to contract
4. Via auto sys search: find open outline agreements when you create order

Question 5

6. Customizing for open outline agreements (4):

Answer 5

1. Blank: no checks
2. A/B: search at header/item levels via customer/material and displays dialog box from which you can select agreem to proceed w/ order or access selection list
3. C/D: search at header/item levels via customer/material, auto creates doc w/o dialog box if there is only one agreement and issues info msg for release in status bar
4. E/F: search at header/item levels via customer/material, goes directly to selection list, but behaves as C/D if there is only one contract

Question 6

7. Quantity contract update (3):

Answer 6

1. Released quantities auto updated in contract when release order is created
2. Sys informs that subsequent docs exist if release orders are already created for contract
3. Retroactive order assignment to contract update contract’s balance as well as subsequent changes to release orders (e.g. return order w/ refer to release order)

Question 7

8. Value contracts (3):

Answer 7

1. Outline agreement w/ customer for validity period with fixed dollar value (target amt)
2. Pricing and customer/material restrictions that are checked during order creation
3. Issues info msg about existing contracts during order creation if check activated in customizing

Question 8

9. Valid materials for value contracts (4):

Answer 8

1. Via product hierarchy or material list in assortment module of material master
2. If both PH and assortment mod are maintained, materials from both are permitted
3. Order entry date is checked against each material validity period in assortment mod
4. Copying control at item level and material assignment to sales area can also restrict valid materials

Question 9

10. Releases for value contracts (6):

Answer 9

1. Release orders are created w/ refer to contracts, which can be found via partner number or contract number in the case of customer lists
2. Select valid materials for order items using item selection func, which allows to choose them directly or by exploding assortment mod
3. Release orders are created in any currency but total value uses contract currency
4. Deliv quantities/times are stored in release order sched lines
5. Sys checks contract requirements like release rule and validity period and you config what happens when order value exceeds contract’s open value
6. Retroactive order assignment to contract can be done at header or item level and results in auto re-pricing, but contract value changes can only happen for assignment at item level

Question 10

11. Billing for value contracts (3):

Answer 10

1. Bill each release order: order or deliv related using standard order OR
2. Bill value contract: order type WA with or without bill plan
3. Bill plan: auto bill value contract for partial quantities in diff dates provided contract is fully released and auto update open bill dates if item target value changes in contract

3.

Question 11

12. Standard value contract types (2):

Answer 11

1. WK1 general: allows diff materials and services based on valid materials list
2. WK2 material-related: contains only one material

Question 12

13. Controlling value contracts (6):

Answer 12

1. Use customizing’s screen sequence group for doc header/item to distinguish between contracts WK1 and WK2
2. WK1 uses item cat WKN and WK2 uses WKC to maintain value contract material and det data like acct assignments, taxes, statistical updates
3. Based on what you enter in item sys picks item cat usage indicator VCTR or item cat grp VCIT
4. In copying control item level pick value WKC so contract material is copied to order and WKN so it is not
5. Config if sys reacts with no response, warning msg or error msg when release exceeds contract value
6. Value contracts use doc det proc Y and pricing proc WK001 w/ cond type WK00

Question 13

14. Partners authorized for release in value contracts (3):

Answer 13

1. Check partner authorization field in customizing via rule A (customer list) or B (customer hierarchy) to authorize sold to
2. When you create order select from a list if there are several sold to and ship to authorized
3. Copying control uses requirement 002 Header/Diff Customer to allow releasing party diff than sold to

Question 14

15. Authorize release partners via customer list (4):

Answer 14

1. Std sys uses partner func AA and partner det proc to store partners in contract partner screen
2. Alternative ship to are represented via partner func AW
3. Selection screen displayed when contract is created if multiple sold to exist in customer master
4. Authorized release partners are checked at header level only

Question 15

16. Activation of contract data in sales doc via customizing (3):

Answer 15

1. Blank - no contract data
2. X - contract data permitted and any changes to contract header are not copied to items
3. Y - contract data permitted and changes to header auto copied to item if header and item data were identical before

Question 16

17. Dates determination (3):

Answer 16

1. Define date det proc in customizing for sys to propose start date and interval
2. Sys auto calc contract duration and end date if you specify a duration category
3. Sys auto det default values for start/end dates, duration cat, subsequent activities and cancel proc if you assign contract profile to sales doc type