Contract Release Value is not updated with Confirmation or Invoice value

[Former Member]

The release value for a contract in SRM EBP shows the value of purchase orders created using that contract. It does not take into account confirmation and/or invoice values.

For example I create a PO for 10 items at £100/each using Contract ABC. The total value of the PO is £1000 and the release value contract ABC would be £1000. If I then only confirm and invoice 5 items (£500) for the PO, the release value of contract ABC stays at £1000 even though I would expect it to update to £500

Therefore the release value of the contract could be incorrectly overstated if purchase orders are created against the contract but not actually invoiced/confirmed for their total value.

Please could you confirm the correct functionality and how I could find out the the true invoice value of purchases made using a contract?

[Former Member · Accepted solution]

Hi

<u>Which SRM and R/3 versions are you using ?</u>

<b>Meanwhile, please go through the following SAP OSS Notes, which will help in this case -></b>

Note 622045 Net value in release overview of contract is incorrect

Note 493519 Release quantities are not updated

Note 1108322 BBP_CONTRACT_CHECK wrong calculation of values

Note 1102886 Contracts: Lesser Field length for Target Value

Note 1082548 Check of Released quantity and released value in contract

Note 656181 Release synchronization of releases on services

Note 874920 Currency not allowed to be changed for a 'Released' Contract

Note 703771 Resetting release values during purchase order item deletion

Note 643823 BLAREL: Incorrect values in service segment

Note 519879 BBP_CTR_MAIN: No message when values in Contract are reset

Note 520734 Target value not converted if currency is changed

Note 528897 Documents not displayed in contract release order overview

Note 430373 BBP_CON_MNT: No releases available

Note 491993 Entry of contracts with target values

Note 437491 Purchase contract: Incorrect update of the call-off values

Note 406799 BBP_CON_MNT: Fields after contract release ready for input

Note 398168 Purchase contract: Target value is not changed

<b>Do let me know.</b>

Regards

- Atul

[Former Member]

Emily, we are having the same issue as you with our recent SRM 7 upgrade.  Did you ever find a solution where the contract release value gets updated (increased value) when the Last Delivery flag is set on a PO line item and the quantity received is less than the PO quantity?

Any help will be appreciated

Thanks
Eric

[Former Member]

Thanks very much for the advice so far.

We are using SRM 5.5 and ECC 6.0. However we are not holidng contracts in ECC but invoice verification is being carried out in ECC only.

I have had a look through those OSS notes, but none of them seem to describe the issue exactly.

It would be good to get a confirmation of what is standard. Here;s the scenario again:

1) Create PO in SRM for 2 items @ £500 against contract

(Release value of contract says £1000)

2) Carry out goods receipt for 1 item (£500) in SRM and click the last delivery tick box

(Release value of contract says £1000)

3) Enter invoice in ECC for £500 to complete the procure to pay process

(Release value of contract says £1000)

Is this expected? Probably my fault, but I couldnt quiet understand Sundeep's explanation.

Thanks in advance.

[Former Member]

Hi Emily,

Read this link:

http://help.sap.com/saphelp_srm50/helpdata/en/58/2a8442a07b0e53e10000000a155106/frameset.htm

You will probably understand that explanation better than mine !

<b>Target Value, Release Value, Aggregated Release Value</b>

You can enter a target value for the contract. The system displays the release value for the contract or the aggregated release value for the contract hierarchy.

The release value or the aggregate release value being the <b>"The sum of all values that have been ordered against a particular contract"</b>........... "<b>ORDERED AGAINST"</b> not depending on the GR or Invoice !

Hope this clarifies your doubts !!

Sundeep

[Former Member]

and yes, that is standard...the release value is on the PO amount not on the GR or Invoice amount

[Former Member]

Thanks for pointing me to the help documentation. It was interesting to read.

Although I'm still a bit confused by the section in the help on Purchasing Contracts that states the following:

<b><i>Purchasing Contract</b>

Definition

A legally binding document agreed between a purchaser and a vendor.

A purchasing contract defines the purchasing and supply of goods or services at agreed prices and conditions. The quantity and value of the purchase orders, <b>limit confirmations, and invoices</b> are released against the contract.</i>

In what context is it refering to limit confirmations and invoices?

[Former Member]

Hi Emily,

Here is the explanation to your question:

<b>"The quantity and value of the purchase orders, limit confirmations, and invoices are released against the contract."

"In what context is it refering to limit confirmations and invoices? "</b>

<b>Sundeep:</b>

Vendor contract is fullfilled by issuing orders against the contract. When a release order is created for the contract, the system automatically updates the released values in the contract. The release order value is calculated from the <b>total of the open order and delivery values, plus the value that has already been billed to the value contract.</b>

System checks this value with "Outline agreement target value" in value contract and issues warning or error message depends on configuration settings in value contract item catagory.

<b>To keep it simple it is the Sum of Open Orders(Delivery or GR not Completed) + Open GR Value (Invoice not completed) + Invoices = Sum of Initial PO</b>

Sorry, cant give a better explanation than this, and if you find anything that refutes my thinking, please share it with the community.

Hope this info helps !!

Pls assign points for usefull answers !

Sundeep

[Former Member]

We still have not got an answer to this problem. I have a OSS message outstanding with SAP, but they have not found a solution either. I would have thought others would have had this problem? I can't believe we are the only ones.

If anyone has any ideas or suggestions, it would great to hear from you.

thanks,

Matt

[Former Member]

Hi Emily,

I think the release value of a contract is definitely based on the PO value. (i.e. for example $1000 PO created in a $10,000 Contract). For business, when a PO is genereated for $1000, they have commited $1000 from a $10,000 contract, irrespective of the business receiving the goods or invoice being posted.

Hence, the released value is the value of the PO.

In case you want to reflect the right amount of the released value, depending on GR or Invoice, and if you think that you have received all your goods and dont expect anymore delivery, then the update of the qty and amount shall be reflected in a <b>CHANGE ORDER</b>, which thereby will reflect on your released value in a contract.

Hope this info helps !!

Pls assign points for usefull answers !!

Sundeep

[Former Member]

p.s. we are not using BW here so cannot get the information that way. Is there another way?