SURE-EU TRG MANUAL TRF-P2P-1.2.3 - 004 Rev 00intranet.trf.co.in/pdf/SAP End User Trg Manual/06 P2P - MM - PDF... · End User Training Manual for SAP MM ... This End User Training

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End User Training Manual

for

SAP MM – Material Management

Process Name: Purchase Contract

Process No: TRF/P2P/1.2.3

Control Copy No: TRF/P2P/1.2.3/01

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Doc Version Description Prepared by Date Reviewed by Approved by

00 Draft Srinivas .T 25/12/2009

TRF-SURE-EU TRG Manual (TRF/P2P/1.2.3) – 004 Rev. 00 Page 2 of 17

Enterprise Procurement to pay process in TRF has the following business processes. Sl. No. TRF

Enterprise Process No.

Process Name

1 TRF/P2P/1.1 PR processing 2 TRF/P2P/1.2.1 Procurement

planning 3 TRF/P2P/1.2.2 RFQ & Comparison 4 TRF/P2P/1.2.3 Purchase Contract 5 TRF/P2P/1.2.4 Create PO 6 TRF/P2P/1.3 GRN 7 TRF/P2P/1.4 Storage

Management 8 TRF/P2P/1.4.1 Inventory

verification 9 TRF/P2P/1.5 Invoice Verification 10 TRF/P2P/1.6 Vendor Evaluation

For each of the above processes, there are separate End User Training Manuals are available

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This document covers sl. No.4 of the above list, that is Purchase Contract This End User Training manual on Purchase Contract consists of the

Following sequence of sub-processes as listed in the Table of contents (next page)

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��Purchase contract –Overview & definition ............................................................................. 4�

This below information is only for readable purpose and creating Contract is explained below using T code-ME41 ............................................................................................................... 5�

1.2.3-Creating a Contract Manually (Explanation) ................................................................. 5�

1.2.3- Creation of Purchase Contract W.R.T PR-ME31k in SAP ........................................... 7�

1.2.3-Changing the contract-ME32K ................................................................................... 13�

1.2.3-Displaying the contrct-ME33K .................................................................................... 14�


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Definition

In the MM Purchasing component, a contract is a type of outline purchase agreement against which release orders (releases) can be issued for agreed materials or services as and when required during a certain overall time-frame. (In the literature and in practice, similar concepts may also be referred to by a number of other terms, such as "systems contract", "blanket order agreement", "blanket contract", and "period contract".)

Structure

The contract consists of items defining the individual materials, material groups, or services with prices and in many cases quantities.

An item is assigned to an item category, which defines the type of procurement (e.g. item category K for consignment, or L for subcontracting).

An item of the procurement type "external service" contains a set of service specifications. Such specifications may be hierarchically structured. The summary view of such a hierarchical structure is termed an "outline", and the individual levels of the hierarchy are referred to as "outline levels". Quantities are specified in service lines. Services can be released (ordered, or called off against the contract) at item level or at the level of the service line.

Costs can be apportioned among various Controlling objects via the account assignment.

Release orders issued against the contract (see below) are logged in the release documentation.

Contracts can take the following forms:

• Quantity contracts

Use this type of contract if the total quantity to be ordered during the validity period of the contract is known in advance. The contract is regarded as fulfilled when release orders totalling a given quantity have been issued.

• Value contracts

Use this type of contract if the total value of all release orders issued against the contract is not to exceed a certain predefined value. The contract is regarded as fulfilled when release orders totalling a given value have been issued.


You can also set up corporate buying contracts with your vendors. These are valid for all plants and company codes within a client.

Over the contract validity period, certain quantities of the materials or services covered are released (called off) against the contract as and when required through the issue of purchase orders referencing the latter. Such purchase orders are thus termed "contract release orders" or simply "release orders". (Outside SAP, particularly in the UK; they may also be referred to as "call-off orders".)

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1. Choose in easy access –logistics-MM-Purchasing- Outline agreement- Contract Create

The initial screen appears.

2. Enter the necessary data. If you make any specifications under the group heading Default data, this data will appear as the default data in each item.

In the Agreement type field, specify whether you are creating a quantity or value contract, for example.

3. Press

ENTER.

The header data screen appears.

4. Enter the contract validity period. Check the other fields on this screen and make any necessary changes (e.g. the terms of payment) and define the header conditions (Maintain Conditions)

5. Press

ENTER .

The item overview screen appears.

6. On this screen, enter the information for each item (material number, target quantity, price, receiving plant, or account assignment, etc.) using the same procedure as with purchase orders.


Material without a master record: leave the field for the material number empty and enter the following:

– Short description of the relevant material or service in the Short text field

– Material group to which the material belongs, in the Material group field

– Account assignment category you can enter u (unknown) or the category of an account assignment.

– The target quantity and the order unit

7. If you specify an account assignment category other than

U (field A), you must enter the relevant account assignment data for the item. To do so, choose Item ® Account assignments (see also Account Assignment).

8. If necessary, review the details for each item. Select the item(s) to review. Then select Item

Details

9. Enter the desired conditions.

10. Enter further text for the item if any additional instructions to the vendor or Goods Receiving

are necessary. Choose Item

11. ® Texts ® Text overview.

12. Save the contract.

13. The contract is created in the SAP System.

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�The contract is a binding commitment to procure a certain material or service from a vendor over a certain period of time. �

S.N0 Field name/Activity Description EG: User action and values

1 vendor number Enter the vendor's number.

300000

2 agreement type Choose an agreement type for the outline

agreement you want to create.

MK

3 agreement date Date the agreement was created.

25.12.2009

4 purchase organization

Entry of the responsible purchasing

organization is mandatory.

1000

5 purchase group Enter the key for the responsible purchasing

group.

100


Enter vendor number, agreement type, agreement date, purchase organization, purchase group & plant optional as per the requirement of TRF SBU. Note: Contract can also be created with reference to purchase requisition or directly. Click reference to Purchase requisition

Here MK is the standard quantity contract


In Contract header data ,enter Fields In header data Vaild start Vaild end Target value Payment terms Vendor quotation date & Other reference data.

Enter validity end date and press enter, next screen appears as


In item Overview enter Material Number, Account assignment category, target quantity since we had selected agreement type as quantity contract

Now select purchase requisition line and click adopt details as shown, all the details from PR will be copied into Contract next screen appears as


After entering all the data, press next screen appears as Note: Since we are creating contract with reference to PR, no need to enter all the data .Pricing related conditions will be copied from preceding document.


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Quantity contract is created with the number 2200000004


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Enter the contract number to be

changed and click enter next screen appears as


Change the required fields as per TRF SBU requirement and save the document.

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� Note: here we can only view the information

Enter the contract number to be

displayed and click enter, next screen appears as




Documents

SURE-EU TRG MANUAL TRF-P2P-1.2.3 - 004 Rev 00intranet.trf.co.in/pdf/SAP End User Trg Manual/06 P2P - MM - PDF... · End User Training Manual for SAP MM ... This End User Training