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SD contract

Former Member
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First time going to work on contracts (Quantity contract, std. value contract, matl. related value contract, service contract and master contract)....Am at client site...at requirement gathering phase....

Could someone pl guide me what would be the kind of questions needed to ask to the business users...if i get the list of questions to be asked that would be great...

Thanks

Vish

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Answers (1)

Answers (1)

Former Member
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Hi,

The key points to understand about the contract is to understand between the different types of contract used by the client and how it can be mapped to SAP.

In SAP, on a broader view, there are two general contract types you can find - i.e. Quantity Contract and Value Contract.

A value contract is a legal agreement with a customer that contains the materials and services that the customer receives within a specified time period and for a value up to a specified target value. A value contract can contain materials or a group of materials (product hierarchy, product proposal module). In brief, where a customer's credit exposure is concern, you can limit the sales of a particular of material via Value Contract.

For example, if Material A cost USD1000 per item, and if you indicate the target value for this customer is USD10,000 - result is, this customer can only buy up to 10 units of Material A from your company.

On the other hand, a quantity contract is a legal agreement with a customer that contains materials & services that the customer receives within a specified period and for a quantity up to a specified target quantity. This type of contract is commonly used and it is usually used also where production of material or available stock for a particular material within a company is scarce. Hence, you would generally want to limit a particular quantity for this scarce Material that the customer can purchase.

For example, if you have 10,000 quantity of Material B in your warehouse and you want to sell this to at least 10 different customers, then generally each of your quantity contract created for a particular customer will have a target quantity of 1,000 units only.

Note: Don't mistaken the functionality of a Scheduling Agreement with Quantity Contract in this aspect.

Master contract is generally a grouping of various types of contract (quantity contract, value contract, rental contract, service contract, maintenance contract etc.) to a master contract (doc. type = GK). The master contract contains information that is relevant for all the lower level contracts grouped.. to ensure consistency of the data (i.e. contract data, business data, partner data etc.)

With the understanding of the various types of contract in mind, you can try to gather the requirements of the client and map it accordingly to the SAP functionalities.

Hope this helps.

Rgds.

Edited by: Kok Wai Phang on Oct 13, 2010 7:10 AM

Former Member
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Hi Kok Wai Phang ,

Thank you very much for the answer....

Now client decided to go for 'Qty Contract'....I would certainly like your valuable inputs on this....

In IMG i only see value contract and master contract...why there is no option for Qty contract and Service contract....

Anyways...it would be really helpful if you let me know how can i do customizing settings in IMG for Qty contract and more finer points on that....

Once again thanking you for your previous post...

Regards

Vish

Former Member
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Any Idea how to get an error while creation of sales order when referred to a contract which validity is over....with std sap it gives warning msg...but i need error msg...

Vish

Former Member
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Not sure but i think it is not configurable as such.

thx

Dilip Sadh

Former Member
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Hi,

Apology for the very delayed reply.

I did not "follow" the thread, hence did not know there is a subsequent message on this.

I hope you have already found the answer to your question.

Technically, the quantity contract is nothing more than a Sales Document, which can be configured in VOV8, which is then further categorized by the SD document category = "G" (Contract).

The standard quantity contract type which you can make copy from is "CQ" in IMG.

As for your question relating to the checking for validity period, yes, the standard system will only generate a warning message, which has been hard-coded in the system, similarly like the warning message checking for creating a call-off order exceeding the contract target quantity, which is also hard-coded in the standard system.

It is not possible to change via configuration, but it may be possible to change only via SE91, which is strongly not recommended.

Hope the above helps.

Thanks.