Agreement Types in Sap
A contract is a longer-term agreement with a supplier (one of two forms of “framework agreement” in the SAP system) to provide a material or service for a specific period of time. Various terms can be used for this concept in the procurement documentation, including “framework order”, “framework agreement”, “system contract” and “futures contract”. Supplier selection is an important process in the procurement cycle. Suppliers can be selected based on the quotation process. Once a supplier is pre-selected, an organization enters into an agreement with that particular supplier to deliver certain items with certain conditions. When an agreement is concluded, a formal contract is usually signed with the supplier. A framework agreement is therefore a long-term purchase agreement with a supplier. − Now that we have understood where framework agreements are stored as data – i.e. in tables where you actually suspect `standard` tasks – and how to identify them – by document category and document type – let`s look at some aspects of the process. When creating a contract, you can choose between the following types of contracts: Framework agreements are an important topic that we must constantly address in our data analysis for purchases. Unlike individual orders, which are often ad hoc in nature, framework agreements are constructs aimed at establishing a longer-term business relationship.
Contracts are often of a higher nature. This may be the case in SAP® as the organization of purchasing is of central importance (and the work can be linked to the organization of purchasing). The purchasing organization appears in the EKKO table for each contract (field: EKKO_EKORG). In corporate structures, however, it often happens that large contracts (e.B the purchase of laptops throughout the Group) are negotiated centrally and can then be used in a decentralised manner. In this case, it is possible to work with almost superior purchasing organizations that are assigned to decentralized purchasing organizations as a reference purchasing organization. The latter can then use and retrieve the framework agreements created under the reference purchasing organization. From the point of view of the data analyst, you can find the assignment of purchasing organizations (field: T024Z_EKORG) to possible reference purchasing organizations (field: T024Z_EKORZ) in table T024Z. A contract is a long-term framework agreement between a supplier and a buyer for a predefined material or service over a period of time. There are two types of contracts – the most important points to consider in a framework agreement are the following step 2 – Specify the number of the scheduling agreement.
It`s a bit more technical, but for the sake of completeness, here`s a screenshot of the table of document types with customization settings in SAP®, if they`re needed for data analysis purposes. The numerical ranges for the corresponding document types,. B for example the parameters for selecting fields, etc. are contained in this table: By clicking on the hat symbol (the header data – remember?), you arrive at the place where the target value of the contract is also visible (in this case, of course, the sum of the two elements). I will now take a closer look at the target values at the article and header level in framework agreements. `A contract is a framework agreement … The contract does not contain calendar lines, delivery quantities or delivery dates. You can clearly see the category (K or L) and the associated document type (LP, WK, MK). Our system includes a total of 154 agreements. Let`s start with examples of different types of framework agreements. Here I look at the following: Tip: If you first fill out your relevant sales organization, sales channel, and department, and then decide on the appropriate contract type, only the contract types relevant to the selected sales organization, sales channel, and department will be displayed in LoVs.
In the case of value contracts, the quantity of the item is often secondary, as the total value of the order counts. For example, a “Facility Management” value contract in the amount of €1,000,000 can be concluded with a service provider. This includes the three areas of building cleaning, necessary repairs and disposal. Here, individual quantities can be allocated much less concretely, and a construction of global value makes more sense. Another example would be office supplies (pens, post-it notepads) that are too “singular” at the post level to be included in a framework agreement. .
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