Contracts

Published on July 2016 | Categories: Types, Brochures | Downloads: 103 | Comments: 0 | Views: 1335
of 38
Download PDF   Embed   Report

Contracts

Comments

Content

Outline agreements.
(a) Contracts,
(b) Scheduling Agreements.
Contracts:
Making of long term agreements with vendor with predefined terms and conditions within a time frame
is called contracts.
Types of contracts:
1. Quantity Contracts.
2. Value Contracts.
3. Centrally Agreed contracts.

1.Quantity Contracts.

Test Scenario:
Step 1: Create Purchase Requisition in [ME51n].
Document type : ‘RV’, Enter the material number, quantity, plant , item category, account
assignment category e.t.c ( if required). Delivery date will not be there for document type ‘RV’
since this is a contract and delivery is not requested.
Step 2: Create Request for quotation [ME41n].

Click
, enter the reference purchase requisition number. Select the
purchase requisition item row and click ‘Adopt’ or ‘Adopt + Details’ button. Here delivery date is
mandatory. Click vendor address button and enter the vendor to whom we are requesting for
quotation. Repeat the same process for other vendors and save. For each vendor we get a new
request number.
Step 3: Maintain Quotation in [ME47].
Enter the RFQ number, Enter the vendor quotation price and save. Repeat the same process for
other RFQ’s.
Step 4: Price comparison in [ME49].
Maintain price comparison. This is basically a report.
Step 5: Create Contract.
Logistics ->Materials Management ->Purchasing ->Outline Agreement ->Contract -> Me31k-Crete
Contracts can be created :
1. W.r.t Purchase Requisition.
2. Request for Quotation.
3. Directly without reference ( here we need to
maintain details manually)

Enter vendor number in initial screen, Agreement type : ‘MK – Quantity Contract’.

[
SPRO -> Materials Management ->Purchasing -> Contracts –
Define number range,
Define document types,
Define screen layout at documents level,
Release procedure for contract.

]
Click
, enter the RFQ number and items number if required. Enter the
validity start and end dates and payment terms. Select RFQ item row and click ‘Adopt’ or ‘Adopt +
Details’ button. Click
button , it is time dependent. Select validity periods for conditions and
enter ‘PB00’ amount. Here supplementary pricing procedure is picked. Select item row and click
item details button and enter info update ‘A’.
Go back and select menu item -> Maintain source list. This takes us to the source list record [ME01].
Here select this contract vendor as a fixed vendor for this material in the same contract valid
from/valid to date. Select MRP as 1-Relevant for MRP, so that if MRP run is executed for this
material, then this source list record fixed vendor and contract number assigned in MRP generates
purchase requisition. If we want to maintain plant specific conditions for a material line item then
from menu edit -> plant conditions -> overview, here enter the plant and click
maintain plant specific prices.

to

Go back to the contract and click
button. Maintain output type ’NEU’.
Go back to the item row, click item->More functions ->Delivery address, observe the plant delivery
address. Save the contract. Here the contract is created as per the document type number range.
*** If a release strategy is customized for purchase orders then this release strategy is automatically
available for contracts as well. Release contracts in [ME35K].
Step 6: Print/Transmit contract document to vendor [ME9K].
*** To release contract [ME35K].
Application : ‘EV – Outline Agreements’,
Message type : ‘NEU’,
Step 7: Go to Purchase Requisition display in [ME53n] and observe status tab.

Observe the source list record. Here the agreement number is automatically updated.
Step 8: Create another purchase requisition of the same material for purchasing [ME51n].
Document type : ‘NB’, enter the material number, quantity, delivery date , plant e.t.c.
In the source of supply tab vendor/contract number determined as per the source
determination. If source determination is unchecked then the source is not determined
automatically.
Step 9 : Crete contract release order
Crete purchase order w.r.t purchase requisition number, and outline agreement number.
In second purchase requisition if contract number is there then details automatically referenced.
ie: Vendor from contract and price from contract and quantity from purchase requisition.
Step 10: Enter goods receipt w.r.t Purchase order.
Step 11: Enter invoice verification w.r.t Purchase order.
NOTE: Whenever the total purchase order quantity exceeds the contract target quantity then the
contract is over.

2. Value Contracts / Rate Contracts:
Test Scenario:
Step 1: Create Contract [ME31k]
Before creating this contract PR, RFQ, Price comparisons also possible.
Enter the vendor, Agreement type ‘WK’, purchase organization, Purchase group.
Enter the validity start and end dates. Enter the target value which will be applicable to all the
line items entered at once. The price at line item will be taken from the info record but still
editable here.
Step 2: Create purchase order w.r.t contract ( ie: contract release orders) [ME21n].
In the purchase order item row enter the outline agreement number, contract item number and
quantity. If the total value contract exceeds contract target value then the contract will be over,
for particular item if the total purchase order quantity exceeds contract target quantity then
contract will be over for that particular item. We may click
of the contract is exceeding or not.
Step 3: Create goods Receipt / Invoice receipt w.r.t purchase order.

to see whether the target value

3.Centrally Agreed Contracts:

Central purchase organizations and reference purchase organization comes to picture during this
scenario.
In the figure to utilize the contract made by central purchase organization ‘TMPO’ make the local or
plant specific purchase organizations ‘JPPO’ , ‘GPPO’ refer to the central purchase organization ‘TMPO’.
You can assign several purchasing organizations to one reference purchasing organization, but each
individual purchasing organization should be assigned to just one reference purchasing organization.

Enter the local purchase organization and the referencing purchase organization.

*** As in figure , purchase organization ‘JPPO’ can be made reference purchase organization to ‘GPPO’
also.
Test Scenario:
Step 1: Create/Extend vendor master by central purchase organization and other local purchase
organizations.
Step 2: Create/Extend the material to all plants.
Use [MM60] to see the material list.
Step 3: Create contract by central purchase organization [ME31k]
Enter purchase organization, Validity periods. Enter the material, quantity ( aggregate for all
plants). If we do not enter the plant then the price entered is applicable for all plants.
Select the item row, from menu edit -> plant conditions -> overview, give plant wise prices if
required by clicking

.

Step 4: Create purchase order w.r.t contract by local purchase organization.
Enter the outline agreement number at item level. Enter the plant ,quantity at item level. Enter
the local purchase organization at org data level and observe the effect, whether this plant
conditions are copied as defined in the contract maintained at central purchase organization
level.
Error
: If we give the Reference purchase organization at the org date level we get error
“Purchasing organization CNPO not responsible for plant TMGP”, Which can be resolved by
entering the local plant specific purchase organization.

Step 5: Enter GR and IV.

Scheduling Agreements
Making of long range agreements with vendor with predefined terms and conditions and with
predefined delivery schedules over a period of time is known as Scheduling agreements.

IMG Settings:
SPRO -> Materials Management -> Purchasing ->Scheduling Agreement ->

Configure Release procedure for Scheduling Agreement:

Test Scenario:
Step 1: Create Purchase Requisition for Scheduling Agreement [ME51n].
Document type : ‘RV’, Enter the material , Quantity, Plant e.t.c.
Step 2: Create Scheduling Agreement [ME31L].

Scheduling Agreement can be created w.r.t:
1. Purchase Requisition,
2. Request for Quotation,
3. Contract,
4. Without any reference.
If in the purchase requisition, if we have entered no vendor then enter the vendor in scheduling
agreement in [ME31L].
Enter the required details like the vendor, Agreement type : ‘LP’, Purchase organization,
Purchasing group, Plant. Click
and enter the purchase requisition
number.
Enter the validity Dates, payment terms, inco-terms e.tc.
Select the purchase requisition item row and click

or

(adopt) button.

Select the item row and click the conditions button
( it is time dependent conditions, since
at document type level we have ticked the ‘Time dependent’ check box). Observe whether the
time dependent time independent conditions are coming based on document type ‘LP’ IMG
settings. Enter the validity periods and condition types. Select the item row and click the item

detail button
and enter the info update as ‘A’ or ‘B’ ( existing info record gets updated with
the details as given in the contract or scheduling agreement).
Select item row from menu item ->Maintain source list, this takes us to the source list
maintenance screen [ME01] and maintain this scheduling agreement vendor as fixed vendor
(Note : If there is another as a fixed vendor in info record then error may occur).
Select the MRP as ‘2-Record relevant to MRP’ in the source list screen , so that when the MRP
run program executes for this material then delivery schedules will be created automatically
against this scheduling agreement. Back to the scheduling agreement screen.
Select the messages button
and enter the message type ‘NEU’, maintain the printer details
and save. Scheduling agreement number created according to the document ‘LP’ number
range.
Release procedures may be configured: In [ME33L] – Display scheduling agreement click
release strategy button to check whether release strategies are configured. Release the
scheduling agreement in [ME35L] t.code.
Step 3: Print /Transmit scheduling Agreement to vendor [ME9L].
Enter the document number, application ‘EV’, Message type ‘NEU’, Processing status ‘0’ and
execute. From the resulting screen choose display message/Output message.
Step 4: Observe the updated source list

Step 5: Maintain delivery Schedules [ME38].
NOTE: Delivery schedules can be maintained manually or can be generated automatically via
MRP run program.
Logistics -> Materials Management ->Purchasing -> Outline Agreement -> Scheduling
Agreement-> Delivery Schedule ->
.
Enter the scheduling agreement number ,select the item row and click delivery schedule button
and maintain the expected delivery dates. Maintain output type ‘LPET’ and save.
*** Here in the same scheduling agreement number we maintained the delivery schedules, this
is how we maintain the delivery schedules.

Step 6: Print/Transmit delivery scheduling document to vendor [ME9L].
Step 7: As per the delivery dates when the vendor supplies the goods to us enter goods receipt and
invoice receipt accordingly.
Step 8: Enter Goods Receipt, On the scheduled delivery date or after that we receive the goods.

The material quantity is automatically proposed here and can be changed according to the
tolerance limits. If a less quantity is delivered then in the next schedule the difference quantity is
also delivered and vice versa.
[ME38] – Display Scheduling agreement.
Step 9: Invoice verification [MIRO].

Scheduling agreement with scheduling agreement releases:
SPRO ->Materials Management ->Purchasing ->Scheduling Agreements ->Define document types.

If we check the release document indicator then forecast delivery schedule releases will be saved in a
separate file and can be displayed any time. If we set this indicator then the delivery schedules again has
to be released in [ME84].
Delivery Schedules are of two types:
1. Forecast Delivery Schedules ( Every month needs are given here),
2. Just in time delivery schedules (In the above month each day requirements we give here).
SPRO ->Materials Management ->Purchasing ->Scheduling Agreements -> Maintain release creation
profile for scheduling agreement with release document.
If the release documentation indicator is selected at document type level then maintain these IMG
setting here.

Select existing profile at our plant level say 1000/0001 and go to details.
Here observe the JIT and forecast delivery schedule creation strategies and aggregate horizon in working
days e.t.c.

Test Scenario (Refer Video):
Step 1: Create scheduling agreement [ME31L].

Enter the validity start and validity end dates ,target values, payment terms etc and click enter.

Enter material, quantity, price, plant, target quantity, e.t.c.
Select item row -> click
, additional details button.
Enter the creation profile and JIT indicator.

*** To select JIT indicator, prerequisite is selection of JIT indicator as automatic in material
Master purchasing view also.
*** If we select this option, system can generate JIT delivery schedule automatically in addition
to FRC delivery schedule.

Step 2: Print / Transmit scheduling agreement to vendor [ME9L].
Enter document number and application ‘EV’ and execute.
Select the item row and click

.

Step 3: Maintain delivery Schedules [ME38].
Enter the agreement number.

Select the item row and click
Enter the delivery date and scheduled quantity ( it will be in display mode).
Select the item row go to menu -> edit -> generate forecast schedules -> generate forecast
schedules.

Click enter.
Select the item row go to menu -> edit -> generate forecast schedules -> generate JIT schedules.
Maintain JIT schedules.
We cannot give output type since the document is not yet released.
Step 4: Create scheduling agreement releases [ME84].
Delivery schedules (FRC and JIT) maintained in [ME38] again has to be released here due to
Document type ‘LPA’ IMG setting.

Enter the details and execute.
Step 5: Print/Transmit delivery schedule document to vendor [ME9L].
Enter the document number, application ‘EV’ and execute.

Here we get two lines:

Step 6: Enter GR/IR on each scheduled delivery date for the delivered scheduled quantity.
NOTE: After 30 days create scheduling agreement releases for next 30 days in [ME84]
and send this JIT delivery schedule to vendor in [ME84] and every month JIT delivery
schedules are released to vendor upto say 200 days and once next FRC delivery date is
reached then create scheduling agreement releases for the next 200 days ie: monthly
how much quantity is required and followed by JIT delivery schedules releases monthly
wise to vendor.

ACCOUNT DETERMINATION (MM/FI Integration):
It enables you to determine GL accounts automatically during posting MM transactions ie: GR/GI e.t.c.
Types of account determinations:
1. Account determination with wizard.
2. Account determination without wizard.
Account determination without wizard:

The valuation area can be either plant or company code. For a company code all the G/L accounts are
grouped together and is maintained at chart of accounts (Chart of accounts is grouping of all G/L
accounts together). Plants are assigned to company codes and the G/L accounts for that company codes
will be segregated under a chart of accounts. Whenever a goods movement (GR or GI) happens at plant
level then corresponding G/L account has to be picked. Here the valuation areas are assigned to ne
valuation grouping code and then G/L determination happens.
*** Same chart of account can be used for more than one company code.

When goods movement posting happens for a material for a movement type, movement type already
linked to valuation string and valuation string contains a group of transaction keys which can be
observed in [OMWN].
But this material has been created with a material type and based on the material type the valuation
classes are determined in material master accounting1 view.

IMG Settings:
Define valuation control:

This is not transportable.
Group together valuation areas [OMWD]:
Here group valuation areas to valuation grouping codes. Valuation grouping code can be any 4 digit, it is
not created anywhere.
*** Chart of accounts assigned to company code in [OBY6].
In company code G/L accounts are created in [FS00], all those G/L accounts are grouped together and
put in one chart of accounts.

Define valuation classes [OMSK]:

We need to process the objects in specified sequence.
Click
,
Account category references groups the valuation areas together.

Already account category references are defined here. As per business requirement we can define new
account category references also.
Example: For raw material ‘ROH’ we require 4 valuation classes, for ‘FERT’ different 3 valuation classes,
at that time we create account reference ‘0001’ for ‘ROH grouping’ and ‘0002’ for ‘FERT grouping’, later
assign the valuation classes for account reference categories, assign this account category references to
material types, only those valuation classes will be available in material master accunting1 view.
Material Type -> Account category references -> Valuation classes (gets displayed in Accounting1
view).

Click
,
For the existing accounting references define required valuation classes.

NOTE: One valuation class is assigned to only one account category reference but one account category
reference can have multiple valuation classes.
Click

,

Example: If we want to show goods movements of material types ‘YOH’ and ‘ZOH’ in the same G/L
accounts then assign the same account reference categories to the material types.

NOTE: One account category reference category can be assigned to multiple material types, but one
material type can be assigned to only one account category reference.
Define Account grouping for movement types [OMWW]:
Account modifiers for movement types.
Here for each movement type valuation string is assigned to a combination of stock type, value
updation, quantity updation, movement indicator reference combination and this valuation string
contains a group of transaction keys. But for some transaction keys (GBB, KON, PRD) again account
modifiers are assigned.

NOTE : We cannot create new valuation string and new transaction key here, if required we can edit
account modifier only. Select any movement type line item say ‘101’ or ‘201’ and click detail and
observe transaction keys and account modifiers which are assigned to this movement types.

At least 2 transaction keys are mandatory since the debits should be equal to credits.
For some of the transaction keys there can be account modifiers.
** For valuation string a group of transaction keys are assigned at program level.
** For certain transaction keys only account modifiers are there.
** Account modifiers are given for following transaction keys GBB,PRD,KON.
Following are account modifiers for transaction key GBB:
BSA – 561 movement type – for initial entry of stock balances.
INV – 701/702…706 - for expenditure/income from inventory differences.(inventory difference
movement types).
VAX - for goods issues for sales orders without
account assignment object (the account is not a cost element).
VAY - for goods issues for sales orders with
account assignment object (account is a cost element).
VBO – 543 O - for consumption from stock of material provided to vendor.
VBR – 201,221,261 - for internal goods issues (for example, for cost center).

VNG – (551……556) - for scrapping/destruction.
ZOB – for goods receipts without purchase orders (mvt type 501)
ZOF - for goods receipts without production orders
(mvt types 521 and 531)
Following are account modifiers for transaction key PRD:
None for goods and invoice receipts against purchase orders
PRF - for goods receipts against production orders and
order settlement
PRA - for goods issues and other movements
PRU - for transfer postings (price differences in the case
of external amounts)
Following are account modifiers for transaction key KON (Consignment liabilities):
None for consignment liabilities (201K, 261K, 211K e.t.c)
PIP for pipeline liabilities (201P, 261P).
*** Purchaser account management settings are required for particular countries ie: Belgium, Spain,
France, Italy e.t.c

Configure automatic Postings [OBYC]:
Click cancel, Click

, Click transaction key BSX, Enter the chart of accounts ’INT’.

For each valuation class ask the FI team to get different G/L accounts.

Here if the valuation grouping code column is not taken
then this is applicable to all plants. To give restriction plant wise we can make use of valuation grouping
code column.
Click

, posting keys created in FI module.

Loss account - Debit (-);
Gain account- Credit (+).

Click ‘WRX’,

The reason why they have given only one
G/L account is because this is a temporary account, just for temporary clearing purpose.
Click

and select the option say ‘Valuation class’ then this option comes in the screen.

Valuation modifier is same as valuation
grouping code. General modifier is same as account grouping code
Click ‘PRD’,

Click ‘GBB’,

Valuation modifier = Valuation grouping code.
NOTE : Same way assign G/L accounts for other transaction keys and modifiers.

Test Scenarios:
Step 1: Create material master in above valuation grouping plant with material type ‘ZOH’. In accounting
1 view assign new valuation class belonging to material type and moving average price and save.
Step 2: Create purchase order for 10 pieces with 110 Rs/Pc.
Step 3: Create GR w.r.t purchase order with 101 movement type, enter confirmation category ,for this
create inbound delivery.

In accounting document observe triggered transaction keys and G/L accounts as per account
determination.

Example 2:
Step 1: Create material master with standard price 100Rs and create purchase order with 110 Rs/Pc and
post goods receipt w.r.t purchase order with ‘101’ movement type. Then ‘101’ movement type
triggers ‘BSX’ for inventory posting with standard price 100 Rs and ‘WRX’ triggers GR/IR clearing
account to post net price as a credit of 110 Rs as credit and the difference amount posted with
‘PRD’.
In accounting document observe the triggered transaction keys BSX, WRX, and PRD.
Step 2: Enter goods issue with ‘201’ movement type for the above material, enter the quantity, where
location details and post goods issue.

Example 3:
Enter goods receipt without purchase order with 501 movement type and observe correct transaction
keys and G/L accounts are determined or not.

Example 4:
Enter goods receipt with 561 movement type.

Example 5:
Enter plant to plant transfer with 301 movement type.

Example 6: Material to Material with 309 movement type.

Example 7:
In physical inventory process:
1. Create physical inventory document in [MI01],
2. Enter counted physical quantity in [MI04],
3. Post differences in [MI07], then differences are posted with 701 ot 702 movement types if any
differences are there.

Example 8:
In consignment process enter gds issue with 201K movement type so that the cost centre consumption
G/L account debited with ‘GBB’ transaction key and account modifier ‘VBR’ and account payable G/L
account credited with ‘KON’ transaction key and enter transfer posting to convert vendor consignment
stock with 411K movement type.

Example 9:
In pipeline process enter goods issue with 201P movement type.

Example 10:
In subcontracting process enter goods receipt for finished product and observe for finished product
which transaction keys and account modifiers are triggered.
Example 11:
Create purchase order for direct consumption procurement say for account assignment category cost
centre (K).
In account assignment tab enter cost centre number say ‘1000’ and observe automatically determined
G/L account with transaction key ‘GBB’ and account modifier ‘VBR’ belongs t cost centre.
Go to [OME9]- Account assignment Categories, select ‘K’ and observe the account modifier as ‘VBR’,

Now in *OBYC+ for ‘GBB’ and account modifier combination the corresponding G/L account is taken.
Consumption G/L account is copied from purchase order to goods issue document.
In *OBYC+ for ‘KBS’ no account determination is there (no check mark).
NOTE: For ‘KBS’ no G/L account is assigned in *OBYC+ and determines same purchase order consumption
G/L account.

MESSAGE DETERMINATION/OUTPUT DETERMINATION:
All purchasing documents, inventory documents and invoice documents are given an output to vendor
by fax or by mail or ALE or EDI e.t.c.
Output determination for purchase order:

IMG Settings:
SPRO -> Materials Management ->Purchasing -> Messages -> Output control -> Control table -> define
condition table for purchase order.
Condition tables already exists, if required create a new one.
From field catalogue add fields to selected fields column. Select purchasing organization, vendor e.t.c.
and click generate, click yes, click local object.
SPRO -> Materials Management ->Purchasing -> Messages -> Output control -> Access sequence ->
Define access sequence for purchase order.
Access sequence already exist, as per the requirement we can define new access sequence.
Define the new access sequence and click accesses in dialogue structure.

Select each of the tables and click fields in dialogue structure to activate the fields. This is a mandatory
function to activate the fields.
SPRO -> Materials Management ->Purchasing -> Messages -> Output control -> Message types -> Define
message types for Purchase order.
Click message types for purchase order. In real time also, message types/output types exists. If different
print program or new layout (Smart forms) are required for purchase order output and print out, then
define new output type as follows:
Select existing output type ‘NEU’ and click copy as and enter the new output type as ‘YNEU’.
Assign access sequence ‘Y111’ to this output type.
Select ‘YNEU’ and click processing routines from the dialogue structure, here control which
communication mediums are allowed to output purchase order to vendor with this output type ‘YNEU’
and assign required print program, smart forms e.t.c.
FORMS = Smart forms, SAP Scripts (Obsolete), Adobe forms.
Click partner roles from dialogue structure; define the mediums preferred by the partner functions.
Since we do not send purchase order details to ‘GS’ and ‘IP’ vendors ,do not maintain these here.
Click ‘Fine tune control: purchase orders’, maintain our new output type entry for operation 1 and 2
combination.

SPRO -> Materials Management ->Purchasing -> Messages -> Output control -> Message Determination
schemas -> Define message schema for purchase order.
Go to new entries and define our new schema, select the line and click control in dialogue structure and
define out message types here.
Click ‘assign schema to purchase order’, and assign our new message schema to purchase order.
SPRO -> Materials Management ->Purchasing -> Messages -> Assign output devices to purchasing
groups.
Here we assign the printer ID’s to the purchasing groups.

Test Scenario:
Step 1: Create vendor with partner function VN/OA.
Step 2: Create condition record for ‘NEU’ in *NACE+,
Select application ‘EF’, click condition record,
Select our new output type ‘YNEU’, click condition record,
Select our table and define our condition record,
Partner function
000

Function
Medium
VN - Automatically 2
taken from the
vendor master.
Click communication button and maintain details.

Duration
3

Language
EN

Step 3: Create purchase order for the above key combination (table),
Click messages button and observe the proposed output type based on the condition record.
Step 4: In [ME9F] send purchase order to vendor.

OUTPUT DETERMINATION FOR INVENTORY DOCUMENTS:
SPRO ->Materials Management ->Inventory Management and physical inventory -> Output
determination.
1. Maintain condition table,
2. Maintain access sequence,
3. Maintain output types,
4. Maintain output determination procedure,
5. Maintain condition record in [NACE].
***Print /transmit material document GR/GI to vendor in [MB90].
Similarly do output determination for LIV in:
SPRO ->Materials Management -> LIV -> Message determination.

Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close