Value Contract

[Former Member]

Dear Experts,

I need your help. I checked in the definition of WKN that a dummy material called WKM2 has to be assigned in the IMG settings against " Value Contract Material" then only the creation would proceed.

Can someone guide me as to how to create this dummy material? and what are the steps involved in the processing of a value contract?

Please advise.

[Former Member]

hi,

Value contract type WK 2 (material-related)

You can create contracts for one material (usually configurable) with this type of value contract. A software company is an example of where this kind of contract is often used. There, a contract for the value of $500,000 is made with the customer for one specific software product.

You can also agree on the length of the contract for this type. The contract duration can be agreed at item level and can be different from the contract duration specified at header level.

In order to achieve technical control of value contract items for value contracts referring to an assortment module or a product hierarchy, you need a material in the item. This is, for example, important for controlling control derivation and statistics update. You can set this material as default. This predefined material is then automatically copied into the item. The item category group for value contracts must be assigned to the material in the material master. If a material is entered, then the item category is created for the value contract. This item category is taken from the item category group in combination with the sales document type.

Procedure

To create a value contract, proceed as follows:

In the initial screen, choose Logistics ® Sales and distribution ® Sales.

Choose Contract ® Create.

In the Contract type field, choose Value contract, and enter the required organizational data.

The values for sales organization, for distribution channel and the division are usually proposed from user-defined parameters. Entries for the sales office and the sales group are optional.

In the standard system, the following two sales document types are defined:

– Value contract general (VC1)

– Value contract general (VC2)

Choose Enter.

Enter the following data:

– Customer number of the sold-to party in the Sold-to party field.

– Customer purchase order number for this document

– Validity period in the Valid from and Valid to fields

– Description of value contract

– The master contract number (see also Master Contracts)

– Material number(s)

– Target values for the materials

The target value is the planned entire value for the material in the contract.

– only for value contracts not referring to material: Product hierarchy and/or assortment modules

Additionally, you can define contract duration for the value contracts VC2 in the Contract start date and Contract end date fields. You can define both contract duration and header level per item. The contract duration at item level can be different to the contact data at header level.

Choose Enter.

If you want to enter further data for the header or items, select the corresponding menu entry. If you wish to change data for an item, select the item before you choose the menu entry.

Enter all the necessary data.

Save the document.

pl reward if it helps.

Thanks,

Sadhu Kishore

[Former Member]

Hi Sadhu,

You have not understood the problem possibly..!

Using VA41 I create a contract using wk1 as the order type for a target value of say USD 1000. In the Assortment Module I mention all the materials that I want for this value contract. In the change mode I assing this assortment module number to this contract.

Now when I am trying to release this contract by VA01 w.r.t. contract number, it is saying " copying items directly into value contract not permitted"...still I go ahead and say copy. It copies the material into the order. But the entire contract value gets executed in one shot. I want to release this contract of 1000 usd for the same material X in 4 sales orders each 250 usd . So How do I do that?

When I saw the value contract assortment material in WKN item cat defn at IDES it is mentioning a dummy materila WKM1. So I asked as to how to go about it?

Also if you can explain as to how the release of value contract would take place in the scenario mentioned above, I will be grateful.

Thanks in advance.