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Contracts: Quantity Contracts Value Contracts Master Contracts

The document discusses different types of customer contracts in SAP, including quantity contracts, value contracts, and master contracts. Quantity contracts are outline agreements without schedules or quantities, fulfilled via release orders. Value contracts specify a target purchase amount over a period. Master contracts set general terms for grouping lower-level quantity and value contracts to ensure consistent data.

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Bhargav Kherde
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29 views

Contracts: Quantity Contracts Value Contracts Master Contracts

The document discusses different types of customer contracts in SAP, including quantity contracts, value contracts, and master contracts. Quantity contracts are outline agreements without schedules or quantities, fulfilled via release orders. Value contracts specify a target purchase amount over a period. Master contracts set general terms for grouping lower-level quantity and value contracts to ensure consistent data.

Uploaded by

Bhargav Kherde
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Contracts 

Customer contracts are outline customer agreements that


display when sales materials or services are sold within a
certain time period.

The standard version of the SAP System contains the


following categories of contracts:

Quantity Contracts

Value Contracts

Master Contracts
Quantity Contracts

A contract is an outline agreement between you and your customer that is


valid for a certain time period .

The contract does not contain any schedule lines, delivery quantities and
delivery dates.

In the contract you can also agree on special price agreements or delivery
times.

The same functions are available in a contract as in orders.


Quantity Contract Procedure

The customer fulfills the contract with individual releases (Release order).

The release order is then processed like a standard order.

Schedule lines are created in the release order when it is placed.

Any special agreements regarding prices are copied from contract .

Release orders are created with reference to a contract .


This generates a document flow that allows you to update the released
quantities in a contract .

Subsequently Delivery and Billing doc will be generated.


Value Contracts

A Value contract is an outline agreement between you and your customer .


It specifies that your customer agrees to purchase a fixed dollar value (target
amount) of goods and services during a defined period.

A value contract can contain other agreements between you and your
customer that are checked in the release order.

• Special price agreements


• Customer restrictions
• Material restrictions.
You can restrict materials that can be released in a value contract in the
following ways :

• Product Hierarchy
• List of Valid materials ( Assortment module )

If both the product hierarchy and assortment modules are maintained in the
document , all of the materials that belong to one or other of the material
groups are valid for the release order.

Assortment modules for value contract are maintained in the master data for
products . You can define a validity period for each material in the assortment
module.

At the time of release order creation the system checks the respective entry
date against the validity period.
Normally you create a release order with reference to a contract.

You can create releases in any currency but the total value is updated in the
currency of the contract.

Two types of Value contract :

• General Value contract :

This order type allows you to refer to different materials and services.

• Material related Value contract :

This is used when the contracts contains exactly one material.


When a release order is created for the contract, the system automatically
updates the released values in the contract. The release order value is calculated
from the total of the open order and delivery values, plus the value that has
already been billed to the value contract.

The system also updates the released value for subsequent changes (for
example, over-delivery of contract release, price changes in the billing
document, partial deliveries, returns, rejection of order items, cancellation or
reversal of orders, deliveries or billing documents).
Normally both the sold to party and other business partners are authorized to
release from a contract.

This means that the central office for a company can decide which of its
branches can release from a contract.

If there are several partners authorized to release against a contract . Example


Sold to party.

Multiple ship to parties are authorized to release for the selected sold to
party.
Master Contract

The master contract is a document under which you can group contracts as
lower level contracts.

It contains the general terms which apply for all the lower level contracts over
a specified period.

You group contracts as lower level contracts under a master contract to ensure
that
the terms in the master contract are granted in all the lower level contracts.

The data in all lower level contracts remains consistent

You can group the following documents under a master contract:

• Quantity contracts
• Value contracts
Contract grouping enables you to link several contracts as lower level contracts to
one master contract so that consistency of data is guaranteed. When you link a
contract to a master contract, data is copied from the master contract into the lower
level contract. Changes to the master contract can be copied directly into the lower
level contract.

Note:
The lower level contracts must be assigned to the same sales area as the master
contract.
You can only group contracts under master contracts on one level. Further
hierarchical relationships are not possible.
A master contract contains header data only. In the master contract, you can
record:

• Business data
• Partner data
• Contract data
• Billing plan data

On the overview screen of the master contract, there is a list of all the lower
level contracts which refer to it. You can branch from this list into the
individual contracts.
Open the floor for discussion
Thank you!

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