Contracts!!

[Former Member]

My customer has both Value Contracts and Quantity contracts. i am interested to know the following:

a. In the value contract while releasing it by sales order, Can I include any stock items that are normally desired by the customer? So that I meet the total value.

b. I am told that if one has more items in the value contract one has to create an assortment module? What is the menu path?

c. Is the Assortment Module contract specific? means everytime I get new contract from the same customer...i create an assortment module?

d. Can I close the Qty and Value contracts prematurely i.e. in the change mode alter the quantity equal to sales order quantities / values released so far...and close the contract?

e. Is there any standard report in SAP that can tell me % completion of the contract?

Your advice is requested..Thanks in advance

[Former Member]

Hi Gaurav,

Please find below in detail about value and quantity contracts.

Value Contracts

Definition

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 certain materials or a group of materials (product hierarchy, assortment module).

Assortment Module for Value Contracts

Use

This function enables you to define a list of materials that can be released from a value contract. Materials can be assigned to more than one assortment module.

An assortment module is an entry tool and can be called up from the value contract. It is valid for a certain time period.

If you delete a material from the assortment module, to which a value contract refers, you will be unable to release that material.

In the value contract, only materials with the same sales organization and distribution channel as the value contract can be taken from the assortment module. All the other materials in the assortment module are not displayed in the value contract.

Quantity contract

Definition

A quantity contract is an agreement that your customer will order a certain quantity of a product from you during a specified period. The contract contains basic quantity and price information but no schedule of specific delivery dates and quantities.(If the customer provides delivery information, you can create a scheduling agreement instead).

The customer fulfills a contract by placing sales orders against it. These sales orders are known as release orders (or call-offs).

You can specify in the contract which other partners in addition to the sold-to party are authorized to release against the contract. For further information, see Authorized Partners for Release Orders.

When you create a release order, you refer to the relevant contract, and the system automatically updates the released quantities in the contract. Otherwise, processing a release order is just like processing a standard sales order.

Hope this really helps you.

Regards,

Srikanth.A

[Former Member]

Hi Gaurav,

Yes you can go hand in hand with value contract+items.

To Configure Assortment Module,Logistics--->Sales &Dist->Master Data->Products--->Value Contract Assortment Module -

---

>Create

Remember that these have validity date & a restriction that only the materials & Services that belong to the same Sales Org. and Dist.Channel for which your order is being released will be displayed.

Hope this atleast helps to certain extent.

Reward if it helps.

SriRam