0301 bpm contracts

Starter pack for grocery retailing

July 2012

English

0301: ProcurementContractsBusiness Process Manual

© 2012 SAP AG. All Rights Reserved. SAP confidential and proprietary information

Starter pack for grocery retailing0301: Procurement Contracts - Business Process Manual

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Contents

1 Purpose........................................................................................................................................ 51.1 Process Flow......................................................................................................................... 6

2 Prerequisite.................................................................................................................................. 62.1 Related Master Data.............................................................................................................6

3 Process Overview Table...............................................................................................................74 Process description...................................................................................................................... 8

4.1 Creation of a Contract...........................................................................................................84.2 Release Contract................................................................................................................... 94.3 Release Order for the Contract...........................................................................................104.4 Contract Monitoring.............................................................................................................11



Procurement: Contracts

1 PurposeA contract in a grocery retailing is a type of a purchase agreement with the supplier against which release orders (releases) can be issued for agreed articles when required during a certain overall time frame. Often in practice similar concepts may also be referred to by a number of other terms, such as "systems contract", "blanket order agreement", "blanket contract", and "period contract".

The process of contracts is normally starting with supplier negotiations with the supplier about delivering of a certain quantity or value of merchandise on specific conditions for a given period of time. After such agreement with the vendor the agreed information is maintained in a form of a contract. The system supports the buyer with the possibility of contract monitoring, where several contracts can be selected and analyzed. Contracts can take the following forms: Quantity contracts

This type of contract is used, when the total quantity to be ordered during the validity period of the contract is known in advance. The contract is regarded as fulfilled when release orders totaling a given quantity have been issued.

Value contracts This type of contract is used, if the total value of all release orders issued against the

contract is not to exceed a certain predefined value. The contract is regarded as fulfilled when release orders totaling a given value have been issued.

The contracts will be created centrally, which means that the agreement is valid for all of the sites assigned to the purchasing organization.



1.1 Process Flow

2 Prerequisite2.1 Related Master Data

Generic Art. Single Art.

Article GPA_1044001-006

GPA_1045

Vendor GPA-V322 GPA-V322



3 Process Overview Table

Step Step Name NWBC Role name*

Transaction Code

Expected Results

1(Chapter 4.1)

Create Contract PO POWER ME31K Quantity contract was created under the number 46000. Make a note of the number.

2(Chapter 4.2)

Contract Release PO POWER ME35K

3(Chapter 4.2)

Message determination PO POWER ME35K

4(Chapter 4.3)

Create Purchase Order / contract determination

PO POWER ME21N Purchase Order created under number 45. Note the PO number.

5(Chapter 4.4)

Contract Monitoring PO POWER WCOC

*The roles listed above must have been installed to test this scenario in the SAP NetWeaver Business Client (NWBC). They must be assigned to the users testing this scenario.



4 Process description4.1 Creation of a ContractIn this process, a quantity contract will be created.

Procedure 1. Access the transaction using one of the following navigation options:

Option 1: SAP Graphical User Interface (SAP GUI)

SAP Menu Logistics Retailing Purchasing Requirements planning Environment Purchase Order Outline Agreement Contract Create

Transaction code ME31K

Option 2 : SAP NetWeaver Business Client (SAP NWBC) via Business Role

Business Role PO POWER

2. On the “Create Contract: Initial Screen” make the following entries:

Field name Description User action and values Note

Vendor GPA-V322

Agreement type MK

Agreement date Today

Purch. Organization 1000

Purchasing group 102

Site Leave blank

Storage Location 1001

Choose Enter. Perhaps you have to enter also the Company Code: 1000

Validity end End of year

Choose Enter.

Article GPA_1044001 or GPA_1045

Targ.qty 1000

3. Choose Enter. Messages appear (e. g.): You have entered a storage location but no plant. Please confirm all messages with Enter.


Starter pack for grocery retailing0301: Procurement Contracts - Business Process Manual 4. Choose Back.5. Choose Save.

6. Choose Back.

ResultQuantity contract was created. Make a note of the number.

4.2 Release ContractIn this process, the contract will be released.



SAP Menu Logistics Retailing Purchasing Requirements planning Environment Purchase Order Outline Agreement Contract Release

Transaction code ME35K



2. On the “Release Contract: Initial Screen” make the following entries:

Field name Description User action and values Note

Release Code 01

3. Choose the Execute button

4. Choose the created contract number from chapter 4.1

5. Click the button

4.3 Release Order for the Contract Contracts do not contain any details about delivery times. To ensure that the vendor knows which quantities are required by which time, you have to create a release order for a contract. When you create a release order, data (vendor data, price, terms of delivery) is copied from the contract directly to the purchase order.You release a contract by creating a purchase order with reference to the existing contract. Purchase orders created in this way are called release orders (also releases or contract release orders).





SAP ECC 6.0 menu Logistics Retailing Purchasing Purchase Order Purchase Order Create ME21N Vendor Known

Transaction code ME21N



When entering the transaction, over the Button ‘Document Overview On’ you can divide the screen in two parts: On the left hand side, the Work Area is displayed. The system uses this area to display the objects that can be selected and edited hierarchically in a selection tree. On the right hand side the detail view for the selected documents shown (Header Data, Item Overview,Item Data).

2. Choose the Call Selection Tree button and set the flag for Contracts

3. Choose the Execute button

4. Select a Contract order number and choose Adopt 5. Choose ‘Document overview off’6. Make the following entries:

Header Data Purchase Order

Field Value

Purchase Type NB

Purchasing Organization (Adopt from Contract)

1000

Purchase Group (Adopt from Contract) 102

Vendor (Adopt from Contract) GPA-V322

Item Data Purchase Order

Field Value

Site GP00

Article (Adopt from Contract) GPA_1044001or GPA_1045

Order Quantity 50

Delivery Date Today +1 weeks

7. Choose Save.



ResultPurchase Order created. Note the PO number.

4.4 Contract Monitoring Contract monitoring capability within SAP ERP supports the buyer with an overview of all created contracts for the selected vendors. This transaction shows the status of the contracts including whether they are open, over- or under-booked and presents all of the purchase orders referencing to the given contract.


SAP ECC 6.0 menu Logistics Retailing Purchasing Seasonal Procurement Procurement Monitoring Contract Monitor

Transaction code WCOC



When entering the transaction, the screen is divided in two parts: On the left hand side, the Work Area is displayed. On the right hand side the detail view for the selected documents shown (Header Data, Item Data, Internal Contract Apportionment).

2. Choose the Call Selection Tree button and set the flag for Only Contracts w Releases

3. Choose the Execute button 4. Double-click on Contract Number (see chapter 4.1)

5. Choose button . Now you can see your created purchase order under Releases.

In the contract monitor, you monitor contracts that you created in transaction ME31K or changed in transaction ME32K, and release orders that you created in purchase order creation.

The contract monitor enables you to monitor the following contract information:o Header and item data

You can determine, for example, which contracts are still open and which have expired.



o Release orders


0301 bpm contracts

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