create fixed rates contracts

[former_member696994]

Hi,

I have to map fixed rate contracts , neither the quantity nor the value is fixed.

For eg : If excavation of ground is to be carried out. Client hires a contractor and executes the work. The client will issue the Purchase order for excavation for all kind of condition i.e.  if it rocky or smooth soil or clay.

1. Excavation of rock  Rs 1000/m3
2. Excavation of normal soil Rs100 /m3
3. Excavation of clay  Rs 50/m3

At this point of time client does not know what type of soil will come up during excavation.

As the contractor starts excavation based on the site condition the contactor would bill the client. If it’s a normal soil during excavation then he bills only for normal soil and not for other two. 

Mapping in sap-ps

We have created a contract inME31K We have created the service activity and maintained line item, Tentative quantity and rates , then create PR and PO. During service entry sheet acceptance in T-code ML81N,  actual quantity is entered.

My question

1.Is it the right procedure to execute fixed rate contract.

2  But few items w.r.t the above example is not used. As the PO is created for this unused items their commitment cost appears in the cost report S_alr_87013533 which is not required and need to be eliminated. How to map this scenario ?

[sanjeevc]

1.Is it the right procedure to execute fixed rate contract.    

yes not a issue.

2  But few items w.r.t the above example is not used. As the PO is created for this unused items their commitment cost appears in the cost report S_alr_87013533 which is not required and need to be eliminated. How to map this scenario ?

you are feeling this due to not using detail planning:

First after detail planing you need to execute you project work, Let say after site survey you need to create order where consider (what type of soil will come up during excavation) one service item would be freeze from all service items. this will prevent unwanted commitment as you desired.

Regards,

Sanjeev