Contract

[Former Member]

Hi

Can anyone tell me the process flow of quantity contract and service contract.

.As far as i know first we have to create Contract master data then wrt this we have to create relese order, then delivery(but no delivery in case of service contract) and billing.

_My Questions are _

1. Can we do milestone billing directly wrt service contract master data.(no release order)

2. Can we do normal billing(VF01)

3..what is the significant of maintaing Master Contract.Is it mandatoty ?

Regards

Joyti

[Manoj_Mahajan78 · Accepted solution]

Jyoti,

3)Master contract helps to engage all lower level contract.

It helps to avoid mismatch related terms & conditions between various contracts. This offers you consistency.

Regds

MM

[Former Member]

hi Jyoti,

If ur queries are not yet clarified, then let us know.

Else, close the thread plz!

Rgds,

Raghu.

[Former Member]

hi Jyoti,

1) Yes in a service Contract, U can directly do billing w/o a rls. Order. Generally, a service contract need not have call off or release orders, nor does it need to

be created with reference to other sales documents.

2) Not sure though, try VF01 with billing type FV.

3) Master Contracts are used to grp lower-level contracts like service contracts, value contracts etc..Contracts are grouped in order to ensure all data in the lower-level contracts remains

consistent as well as ensuring terms granted in the master contract are copied into all lowerlevel contracts.

I hope this helps.

Rgds,

Raghu.

[Former Member]

Dear Raghu,

Can you plz tell me the necessary settings or configurations that i have to do if i need to create a quantity contract.

(i.e from Master contract to Periodic Billing Plan).

regards

Jyoti.

[Former Member]

Hi Jyoti,

For Creating Contratcs Please Use the fllowing Path

Use the following menu path(s) to begin this transaction:

Logistics--> Materials Management --> Purchasing --> Outline Agreement --> Contract Create to go to the Create Contract: Initial Screen.

Transaction Code

ME31K

Hope this will help

Thanks,

Raja

[Former Member]

hi Jyoti,

Contracts(creation via VA41) are pretty much configured the same way as sales docs.

The doc types to be configured at VOV8. std doc type for Qty Contract : KM.

Quantity contracts have no schedule lines or specific delivery dates, as they are not delivered. An order from a contract is called a release order; the delivery is done from the

release order. In a quantity contract the quantity available in the contract is called the u201CTarget Quantity.u201D

The quantity that has been consumed by call off orders is called the u201COrder Quantity.u201D An ex. If U've a qty contract with 500 qty, then each rls order(VA01--reference creation to the contract) the customer places against this contract reduces the open wty by that amount, provided U've done the copy control setting with update doc flow checked.

Some imp points in the contract doc type config:

1) Billing request is for service contracts, leave it blank.

2) Grp ref proc is used, in case, U r using master contracts and ur qty contract is a lower level contract.

3) Contract data field is imp.

I hope this helps.

Rgds,

Raghu.