Here you define the rules for terminating your contracts. The configuration activity includes configuring cancellation reasons, configuring undo procedures, configuring undo rules, and assigning cancellation rules to cancellation procedures. For simple subscription scenarios where a customer pays a certain amount over a period of time, for example. B as a monthly payment over the course of a year, a value contract can be used to manage the process. The value agreement contains a settlement plan that is described at the item level. Contract Profile Here you assign the default contract profile for your contract document, which in turn controls the rule for the start and end date of the contract, the default validity period of the contract, the cancellation procedure to be followed when terminating the contract, the subsequent action required if the contract has expired or is about to expire, and the action date rule that calculates the date, where that subsequent action must take place. You configure these appointment rules and contract profile when customizing contract data using the IMG menu path ➢ Sales ➢ Sales ➢ Sales ➢ Sales documents ➢ Contracts ➢ Contract data. The Manage Purchase Agreement application is used to process subscription agreements in SAP S/4HANA. Below is a settlement of the contract over the course of a year through monthly payments based on a defined billing plan. These monthly payments are made by creating down payment application documents. Once all items have been delivered and outstanding balances have been settled, this subscription agreement can be concluded. The following figure shows that the contract is invalid and that expiration date data is missing based on the document`s incompleteness log.
Users can then explore a specific contract to access incomplete details. Additional customer information will be included in the contract, including sales, shipping, order number and contract validity dates. Validity dates are a mandatory element for contracts. Additional information such as the reason for the order, description and framework agreement can be added to the contract header details if necessary. The materials or services that are part of the contract will be added to the document with the specific quantity agreed. The agreed value for the products and services is also included in the contract. After you save the contract, you can access it again using the Edit Contract or View Contract applications in SAP Fiori. Depending on your business needs, you can set up a service contract to bill for services in advance or late, in regular time buckets, as a one-time fee, or based on the completion of an event or milestone.
A service contract also gives you the option to separate revenue from billing. You can invoice the customer in advance or late and record sales separately in the accounts in periodic compartments. In SAP, you process quantity contracts using the QC document type. processing a quantity contract in SAP. The process begins with the creation of a quantity contract with the type of QC document by entering all the necessary information into the contract such as the customer, the quantity contracted, the validity period, the contractually agreed rate, etc. The quantity of product contracted is kept in the target quantity field of the quantity contract. When you receive the individual sales order, you use the OR purchase order type to create a call order with reference to the quantity contract. SAP then keeps the released quantity in the Order Quantity field of the quantity contract, giving you control over the contracted quantity over the released quantity. It also helps you account for and report on arrears for quantity contracts. The call order also updates the document flow and is then treated as a normal sales order that falls into delivery and billing.
Unlike a sales order, a contract document does not contain a schedule line or a desired delivery date. You maintain the validity of the contract by using the Valid from and Valid to fields, which are available at the header level on the contract entry screen. You can maintain the validity of the contract at the header level, and this validity then applies to the entire document. To enter the contract data into a contract sales document, SAP provides a contract tab in the VOV8 sales document customization transaction. To enable this contract tab for your document type, you must make a selection when adjusting the contract document type. You can have a header costing procedure and an item costing procedure for a contract. A contract in SAP can lead directly to a billing document (e.B service contracts) or be copied into an order followed by a delivery and then a billing document (quantity contracts). Tracking activity type If a contract document is about to expire, you can use the trace actions worklist to trigger the next tracing activity.
For example, you can set tracking activity as creating an offer or email to the account manager, or initiating a telesales call to the customer, etc. In SAP, tracking activities can be identified based on the types of tracking activities. Here, you enter the type of post-activity that SAP should suggest when running the tracking work lists. Those who have migrated to SAP S/4HANA have probably already experienced the SAP Fiori features and applications listed above. But for those who haven`t yet switched to SAP S/4HANA, you should now have a better understanding of how SAP S/4HANA Logistics handles sales contract management. There are two main types of purchase contracts. A volume contract is an agreement between the company and the customer for the customer to buy a certain amount of a material at a certain price within a certain period of time. A value contract is an agreement between a company and a customer that contains the materials and services that the customer receives within a certain period of time up to a certain value. Let`s take a look at the main features of SAP S/4HANA Logistics for managing distribution contracts. A volume contract is a type of contract in which your customer agrees to purchase a certain amount of your product within a certain period of time, but delivery scheduling information, such as .
B when, where and how many quantities are required may not be available at the time of the contract. This delivery planning information is then provided by the customer as individual orders with reference to the purchase contract. An example of a quantity contract is when your customer`s head office signs a purchase contract with you for a certain quantity of your product at a certain price, zder3 and with a validity period of one year, but you receive the information from the planning agreement of each branch in the form of call orders against the contract if they need the product within the next period of one year. A purchase contract is a legal agreement that not only contains all the essential elements of a sales order, but also has a validity period. By signing a purchase contract, the seller undertakes to deliver the goods and services to the customer and the customer undertakes to receive and pay for the goods and services in accordance with the terms of the contract. Breach of a contract has its own consequences and may result in penalties and other associated costs. Due to its legally binding nature, a purchase agreement provides an accurate picture of the current sales period and the future sale period and therefore also serves as an income protection instrument for companies. Group reference procedure This field is relevant for the implementation of the framework contract document.
Here, you assign a reference procedure that defines the rules by which data is copied from a framework agreement to subordinate contracts. The validity period category is a double-digit key that SAP uses to suggest the validity periods of a contract. The key is assigned to a contract profile, from which it references the default contract document. You can use the validity period category as one of the key terms in contract pricing and also in contract statistical evaluations. You can set a validity period category key using the VOVO transaction code or the IMG menu path ➢ Sales ➢ Sales documents ➢ Contracts ➢ Contract data ➢ Set validity period categories. the adjustment screen to set the validity period category. After resolving the issues in the contract, the user is put back in the incompleteness list and can proceed with the resolution of the incompleteness issues. With SAP S/4HANA 1809, a new function for exporting to a spreadsheet has been added to the Manage Distribution Agreements application. With a new OData service, you can now retrieve purchase agreements blocked for negative credit checking and perform verification, read, and release operations. You can also update and delete sales contracts in the SAP Fiori frontend. A purchase contract in SAP is nothing more than another type of sales document that you define using the VOV8 transaction code, but with a few other features made possible by using the fields available specifically for contracts.
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