Contracts and Special Processes Flashcards
Contracts
- Quantity Contracts
- Value Contracts
- Service Contracts
- Group Master Contracts
Contract info
Use a different number range for contracts. Ensures an easier time searching for documents and referencing contracts later.
Contract info 2
- Contract configuration is the same as standard sales document types unless specifically states otherwise
- Order from a contract is a release order
- Open contract quantity only decreases if you have set the update document flow checkbox as enabled on the item category in the copy control rules
Quantity Contracts
- Happens after quotation but before an order
- Used mainly to limit the quanitity the customer can buy and to offer special pricing
- Generally used when demand for a material is greater than the available supply and business has to implement measures to limit the supplied quantity between its customer base
- Document type CQ
- Does not transfer requirements
- Does not create a requirement for stock within the plant and subsequently there is no confirmation of stock within the plant for the contract
- Does not require production to make the stock to satisfy the contract
- Does not require material management to purchase the stock to satisfy the contract
- Contract has no schedule lines nor specific delivery dates
- The requirement is placed on the plant when the release order is created with reference to the quantity contract
- Allows the customer to have a special price per material for a limited quanitity
- Quantity decrease each time an order is made
- Contract expires when the validity date expires or the customer has purchased the full quota of the stock
- Quantity contracts have their own pricing procedures, texts, partners, etc and item categories
- Quantity available is the “Target quantity”, quantity consumed is “order quantity”
Contract Configuration Field: PriceProcCondHeadr and PriceProcCondItem
Pricing procedures and are configured as pricing procedures.
They do not replace the price procedure used in the contract. These values are used for supplemental price agreements.
Contract Configuration Field: Contract profile
*discussed in next section*
Contract Configuration Field: Billing request
Used for service contracts, to bill the customer for a servie that was not agreed to in the original service agreement.
Standard SAP sales document type to perform this billing is LV, which is a debit memo request for service contracts
Contract Configuration Field: Group Ref. Procedure
Used for master contracts to determine which data is to be copied, or proposed, into lower level contracts. Referencing procedures are configured with master contracts later in this chapter.
Contract Configuration Field: Contract data allwd.
Indicates to the system what to do when data differs between the header and item levels.
X, system will not copy any changes you make in the header level into the item levels. This is also true even if the data at header and line item were identical prior to the header data being changed.
Y, the system automatically copies all header data into the item in the contract (only if the header and item contract data were identical prior to the changes)
Contract Configuration Field: FollUpActivityType
Used to speed up the creation of follow-up activites. For example, the follow-up sales activity type 0002 (telephone call) is specified for sales document type WV (service contract).
Contract Configuration Field: Subseq.order type
If the follow up action in “FollUpActivityType” would have been “create quotation,” you would need to enter a quotation document type, in this field.
Contract Configuration Field: Check partner auth.
checks that the partner either is the Sold-to Party of the contract or has a partner function of AA ( which indicates an authorized relesase partner). This is the standard hcecking rule A.
In the standard checking rule B, the system then checks if the partner wishing to release from the contract is a lower level customer in the customer hierarchy, to the Sold to Party in the contract.
Contract Configuration Field: Update low.lev.cont. check box
Used by the system to update lower-level contracts, should the data you are changing be the master contract. These changes are then passed down to the lower-level contracts via workflow.
Contract info
You may also create multiple Ship-to Parties for the specific contract.
There are two ship-to [arty partner functions, standard and the one for multiple ship-to parties
Contract Profiles
Have general info on a contract such as start date, and end date. They’re their own configuration objects ala sales document types, etc
Defining Cotract Profiles
- Contract start rule/start date
- Start date is the acceptance date, and the end date is the start date plus the validity period
- Contract end rule/end date
- Validity period
- Cancellation procedure
- Action date
- Action date rule
Contract Profile: Defining rules for determining dates
- Baseline Date, start date for calculation, equal to billing date
- Time period, the value that will be later be multiplied by the time unit
- Calendar ID the key for the factory calendar. Factory calendar takes into account non-working days and public holidays, so the resultant date may be later when calculated.
- Contract data checkbox, used to force the system to always use header contract data to determine the baseline data, as opposed to the item or header data dependent on the usage of the date rule
Contract Profile: Defining validity period category
- Val per cat.
- Val period, how long
- Unit val period
Contract Profile: Defining cancellation procedure
- Cancellation procedure
- Valid from
- Valid to
- Description
- Cancellation reasons, simply defines the cancellation reason, which may also be used to report on sales analyses
- Contract cancellation baseline date as the start date
*
Service Contract
Legal agreement between the receiver of the service and the business supplying the service.
Used by the business to initiate automatic billing of routine services at regular intervals and can determine if a cancellation request of the contract is valid
Used by the receiver of the service as a contract he can claim on
Sales document type WV
Need not have a call off or release orders, nor need to be created with reference to other sales documents
No delivery necessary because no movement of materials
Service contract may have periodic or milestone billing and bill customer according to a schedule of billing dates
Service Contract part 2
Integrates with CS (Customer Service) module. Permits the CS module to arrange the technicians for the service in accordance with the service contract.
Service item can be
- A service task, once off
- A material used in the service
- Time charged for a technician’s hourly rate
Item category is WVN. You may need additional item categoriesbecause of the different types of items available on a service contract.
Service Contract part 3
The standard item category has acompletion rule C, which determines the item to be fully referenced when target quantity if fully reached.
This item category is relevant for order-related billing according to a billing plan, as well as utilizing a billing plan type 02, periodic billing.
Service Contract part 4
Item category does not have any schedule lines allowed
SAP provides standard material types for service items. DIEN is the material type used for standard services. KMAT for configurable services (products).
Value Contrarocess
Similar to quantity contract in that limits the material or services to customer. Instead of limiting due to qauntity of stock, the contract and its ceiling is based upon total value.
Created and maintained the same way as the other standard contracts and document types.
Assortment Module
An order entry tool displays a list of materials and services that can be released from a value contract.
Has a validity date and restriction for materials and services belonged to the same sales org and distribution channel for release order
Standard Value Contract WK 1
Contract based upon total value for an assortment of materials per customer.
Material-Related Value Contract WK2
Used when you need the functionality of a value contract. Using this type of contract you generally restrict its use to one material.
Uses a contract start and end date, which can be different in this contract at item level than at header level
Similarities of the Value Contracts WK1 and WK2
Have a header level and item level.
Neither have a schedule line level. Neither responsible for delivering products.
Each has a release order, which calls off from the total value.
Have their own number range.
Have sales document category G
Have pricing procedures
Master Contract
Contract in which you group other contracts as lower-level contracts.
The master contract has the general data that is relevant for all lower-level contracts over a specified period
Contracts are grouped in order to ensure all data in the lower-level contracts remains consistent and ensuring terms in master are copied to all lower-level contracts
Documents are grouped under a master contract
- Quantity contracts
- Value contracts
- Service contracts
Master Contract part 2
Contract contains header data only
Contract grouping, the process whereby several lower-level contracts are linked to one master contract to ensure data consistency
When you link a lower-level contract to a master contract the header data of the master is copied to the lower-level contract (lower and higher must have the same sales area)
To group contracts you have to define the referencing requirements. You assign the contracts that can be referenced by the main master contract.
Master Contract part 3
You have to define referencing procedures after assigning reference documents
You define a master contract similarly to how you define a sales document type
Scheduling Agreements
Outline agreements that a business has with a customer
Contain delivery dates and quantities to be delivered. These dates are entered in as schedule lines in the delivery schedule of the agreement.
Scheduling agreement is processed by delivering the schedule line as they become due
Schedule line types are not schedule line categories. Schedule line types are used for information purposes only.
The planning delivery schedule
Internal delivery schedule used to plan requirements more efficiently
Three sections
- Maintain delivery schedule splitting rules, determine the characteristics of the planning delivery schedule
- Maintain planning delivery schedule instructions, define the split of schedule line quantities between different days in the planning delivery scheduleand the forecast delivery schedule
- Assign delivery schedule splitting rules, assing the splitting rules to the planning delivery schedule
Schedule agreements info
The ship-to party calendar is used to control the goods receipt of the ship-to party, this calendar is assinged to the schedule line agreement item, the unloading point
A scheduling agreement does not need a release order, you can create a delivery straight from the scheduling agreement
MRP for delivery schedule type defines how the schedule lines are to be controlled. Value proposed when creating a scheduling agreement.
Standard deliveries are created for the scheduling agreements, so delivery type is LF
Schedule line agreements standard Item category
LZN
relevant for delivery-related billing and pricing. Does not allow schedule lines
Schedule line categories used
CP MRP (materials requirements planning). CP is the standard schedule line category posting requirements through to materials planning and doing the availability check
CV Consumption MRP. CV is also a standard schedule line category that does do an availabilty check. CV does no post the demand through to MRP.
CN No materials planning. CN does no availability check and no MRP
Sales Document Lists
Lists used throughout the system to generate an overiew of documents displayed in a certain style and totaled by a certain parameter.
Used in all document processes from inquiries to invoices
Process standard
Sales Document Status Profile Management
In a sales document you have statuses at the header and item level. These are used to control the stage/status the sales document is in.
Sales Incompletion Procedures
You define the fields that, if incomplete, will render the sales document incomplete. You set the fields to be relevant for incompletion checking at header, item and schedule line level.
