create a sap contract -...

SAP How to Guide – Create a Contract

DoF | COOG | I,TWD | Application Services - SAP 7/08/2014

Create a SAP Contract

Overview For all Procurement of goods and services valued at or above $10,000 (GST Inclusive), and all consultancies (regardless of value), a contract must be created. This allows contract details to be gazetted. Purchase order(s) can then be created that reference the contract.

SAP Contract Layout

The SAP contract is divided into several different sections:

1. Create Contract: Initial Screen This section contains details regarding the supplier of the goods or services, type of agreement, the division, branch and group where the contract is created.

2. Create Contract: Header Screen This section contains the date range of the contract and the total value of the contract (GST Inclusive). Further data that can be entered includes reference data containing RFT numbers and SON numbers.

3. Create Contract: Item Overview Screen This section contains details regarding each line item making up the contract. These details are kept in GST exclusive format, and contain a brief description, GST code and Account assignments.

4. Gazettal Criteria Screen This section contains details used in public reporting on AusTender (arrangements valued at or above $10,000).

5. Completion This section contains details about the completion process for contracts created.

6. Attaching Documents This section contains instructions on attaching documents in SAP.

7. Contract workflow This section confirms who can release documentation within SAP.

8. Printing the Contract This section contains instructions on printing contract details entered into SAP.

Prerequisites

Ensure that:

The contract does not already exist.

Ensure that PGPA subsection 23(3) approval to commit relevant money has been obtained.

If it is a multiyear contract, ensure that the “Multi-Year Commitments Considerations Form” has been completed and attached to relevant documents.

If an indemnity is required, ensure it has been granted in accordance with PGPA section 60.

Ensure that the required procedures of the relevant Business Group, Accountable Authority Instructions and Enterprise Management Office have been completed.

For advice on procurement and contract reporting, contact the Financial Governance team,

Enterprise Management Office (ph. 02 6215 2443).

https://www.tenders.gov.au/?event=public.home

mailto:[email protected]


DoFD | COOG | I,TWD | Application Services - SAP 7/08/2014

From within the Portal MENU PATH Portal > Home > Procurement > Contract > Create

Create Contract: Initial Screen

Step 1: Vendor Each Vendor (supplier) to the Department has a unique SAP Vendor number. If known, enter the Vendor number.

If the Vendor number is not known, use the Search icon to perform a search for the Vendor using a number of different criteria such as by name, postcode, etc.

You can enter a wildcard search (*) on “Name” to limit the search even further, e.g. to search for

Telstra Australia, enter “*telstra*”

Click on the “Start Search” button.



Select the correct Vendor and click the Copy icon to accept the selection and return to the Create Contract: Initial Screen.

Step 2: Agreement Type

Use the Selector icon next to the Agreement Type field to display the drop-down list. Select the appropriate Agreement Type, (e.g. CNCG for General Consultancies, or NCGC for General Contracts) as shown in the list below:

Click the Continue icon to accept the selection and return to the Create Contract: Initial Screen.

Explanation of Agreement types:

Type Description CNCG All non-legal consultancy contracts.

CNLC All legal consultancy contracts.



NCCE General contract for goods and services (Capital Expenditure). Note: Some assets/and or WBS/Project elements would use this agreement type.

NCGC General contract for goods and services (non-Capital Expenditure). Note: Some assets would use this agreement type.

NCPH General contracts for personnel hire.

Step 3: Agreement Date The Agreement Date is the date that the arrangement was entered into (e.g. the date the contract was signed by the last party). Be careful to ensure that the date is correct as it cannot be changed later in the process.

Step 4: Purchasing Organisation Enter the “Purchasing Organisation” for the Business Group, special Project or Administered

Account as appropriate. If you don’t know the Purchasing Organisation, use the Selector icon to display a selection list of codes.

Step 5: Purchasing Group. Enter the appropriate “Purchasing Group” code. If don’t know the Purchasing Group, use the

Selector icon to display a selection list of codes.

Step 6: Account Assignment Category Enter the appropriate “Account Assignment Category” code if known.

To search for a code click in the field and use the Selector icon to display a selection list of codes. The basic rule is:

Select K: When creating a Contract against a Cost Centre.

Select A: When creating a Contract against an Asset.

Select P: When creating a Contract against a Project.

Select F: When creating a Contract against an Internal Order.

Step 7: Plant

The “Plant” Code indicates the delivery address. If unknown use the selector icon to display a selection list of codes.

Note: If the correct delivery address is not displayed check the correct Purchasing Group was selected in the



Create Contract: Initial Screen > Purchasing Group field.

Step 8: Material Group The “Material Group” Code indicates the procurement arrangement (such as a Standing Offer) that the Contract was established under.

Use the selector icon to display a selection list of codes and click the Copy icon to accept the selection and return to the Create Contract: Initial Screen. For goods or services not engaged under a panel arrangement, use:

Material Group code 01 for non-panel services; and

Material Group code 02 for non-panel goods.

Step 9: Continue to next screen

Press the Enter key or click on the Overview icon to continue. Note: If the Agreement Date is earlier than today’s date a warning message will appear at the bottom of the

screen.

If the Agreement Date is correct, press the enter key to continue.



Create Contract: Header Screen

Note: The Company Code, Agreement Type, Purchasing Group, Purchasing Organisation, Vendor, and Agreement

Date currently pre-populated from information provided in the Create Contract: Initial Screen.

Step 1: Validity Start Date The Validity Start date is the “start date” of the Contract (the date the goods and/or services under the contract are to start being delivered). Enter the date into the blank field or use the selector icon to choose a date from the calendar (e.g. 30.04.2012).

Step 3: Validity End Date The Validity End date is the end date of the Contract (the last date of delivery of the goods and/or services). Enter the date into the blank field or use the selector icon to choose a date from the calendar (e.g. 30.06.2012).

Step 4: Target Value The “Targ. Val.” field represents the total value of the contract including GST. Enter the total value of the contract (e.g. 110,000)

Step 5: Quotation Date The “Quotation Date” is the date that the quote was received from the Supplier. Enter the date the quote was received in the Quotation Date field (e.g. 01.04.2012).

Step 6: Quotation The “Quotation” is the identifier that the Vendor uses to reference the quote. If the quotation included a reference, enter the quotation reference in the Quotation” field (e.g. RFQ9010801). If no quote or reference number is provided, leave blank.

Step 7: Your Reference The “Your Reference” is the reference number (Procurement Reference Number or Request for Tender number) that the Department uses to refer to the approach to market process. In the field; enter the reference number (e.g. FIN00COOG0000). If no reference number is provided, leave blank.



Step 8: Salesperson The “Salesperson” is the name of the Vendors contact person.

Enter the vendor contact name in the Salesperson field (e.g. Friendly George). If no vendor contact person is provided, leave blank.

Step 9: Our Reference The “Our Reference” is the reference number of the Standing Offer Arrangement (panel) the contract has been entered into under. Enter the Reference Number in the Our Reference field (e.g. SON121212). A list of Panel Reference Numbers can be found by searching AusTender.

Step 10: Telephone The “Telephone” is the contact number of the Vendors contact person. Enter the vendor contact number in the Telephone field (e.g. 02 6215 2222). If no vendor contact number is provided, leave blank.


Press the enter key or click on the Overview icon to continue. Note: If the Validity Start is earlier than the Agreement Date a warning message will appear at the bottom of the

screen.

If the Validity Start date is correct, press the Enter key to continue.




Create Contract: Item Overview Screen

Note: The Agreement Type, Agreement Date, Vendor, Currency type, Account Asset Category, Material Group and

Plant, currently pre-populate from information provided in the Create Contract: Initial Screen and Create Contract: Header Data.

For Each line Item

Step 1: Item Category Leave the “Item Category”, blank.

Step 2: Account Assignment Category The “Account Assignment Category” pre-populates from the Create Contract: Initial Screen. It can be manually changed if line items require different Account Assignments, in the case of a Contract that covers multiple areas.

Step 3: Material Leave the “Material” field blank.

Step 4: Short Text Enter a concise, meaningful Short Text description of goods/services provided, (e.g. Stationery for office cupboard).

Step 5: Target Quantity The “Targ. Qty” is the GST exclusive value of the line item. Enter the Target Amount (GST Exclusive) of the goods/services provided (e.g. 100,000) in the “Targ. Qty” field.

Step 6: Order Unit The “OUn” (Order unit) is the type of unit that the line item is measured in. Enter the appropriate unit of measure, (e.g. ea for each) in the OUn field.

Step 7: Net Price The “Net Price” is how many units of the line item Finance is receiving. Enter “1” in the Net Price Field.

Step 8: Per field The “Per” field indicates the purchase order price unit, leave blank.



Step 9: Material Group The “Material Group” is pre-populated from information provided in the Create Contract: Initial Screen. The material group should not need to be changed.

Step 10: Plant The “Plnt” (Plant) field is pre-populated from information provided in the Create Contract: Initial Screen. The Plant should not need to be changed.

Step 11: Deletion Flag The Deletion Flag field is not used, leave blank.

Step 11: Item The item field is not used, leave blank.

Step 12: Continue to next Screen

Press the Enter key or Click on Overview icon to continue to the Create Contract: Item 00010 screen.

Step 13: Create Contract: Item 00010 screen Select an item from the “Tax Code” field. The common tax codes are:

Tax Code P1 for standard taxable items; and

Tax Code P0 for non-taxable items.


Press the Enter Key or click on the Account Assignment button to continue.



Step 15: Complete the GL Account. As required, complete the following fields for Contract; enter a

Cost Centre where account assignment category is “K;

Cost Centre and Internal Order for category “F”; and

WBS Element for category P.)

Step 16: Continue to next screen Press the Enter Key to have the system automatically complete the Funds field.

Note: The Company Code, CO Area, Fund, Functional Area, Fund Centre and Commitment Item should all be left

blank as these fields will be completed automatically by the system.

Step 17: Review Review the populated fields to ensure that the correct Fund has been populated.


Click on the Copy icon to continue.



Gazette Criteria Screen Step 1: Save

Click on the Save icon if the Contract is worth $10,000.00 and above, the Gazette Criteria Screen will open for completion.

Note: Gazetting is the process of publicly publishing contract information onto AusTender.

Step 2: Blocking reason “Blocking reason” is a flag; only enter a Blocking Code if the Contract is NOT to be gazetted.

Generally this field is left blank or not blocked). Use the Selector icon to display a drop-down list of possible Blocking Codes.

Step 3: Contact Code The “Contact Code” is the detail of who interested members of the public should contact with enquiries. This field is pre-populated with code “0001” that corresponds to the Procurement Advice and Financial Policy Team and should not be changed.

Step 4: Office Postcode The “Office Pcode” is the post code of the postal address of the Department of Finance and




Deregulation. The Office Post code field is pre-populated and should not be changed.

Step 5: Description Description - Enter a brief concise description of the Contract goods/services (no more than (I thought it was 100 characters) This description will be reported publically and should not contain reference to names or dates. Please do not use the prefix “provision of” or “providing”

Step 6: UNSPS Code The “UNSPS Code” (the United Nations Standard Products and Services Code) is a universal, hierarchical convention used for gazettal purposes to classify products and services.

Enter the appropriate industry code, e.g.80140000 or use the List icon to display a drop-down list of codes. To search for a specific code, click on the Triangle

next to the Search Criteria to display a search section as shown below. Enter a free text description.

Finance typically use industry codes starting with 8, so enter 8* in the code search criteria.

Step 7: Procure Method The “Procurement Method” should be selected from the dropdown box

Step 8: ATM ID The “ATM ID” is the reference number (Procurement Reference Number or Request for

Tender number) that the Department uses to reference the approach to market.

In the field enter the reference number (e.g. FIN00COOG0000). If no reference number is

provided, leave blank.

Step 9: Planned End Date The “Planned End Date” is the end date of the Contract (i.e. the last date of delivery of the goods and/or services) This date pre-populates from data entered on a previous screen and should not be changed.

Step 10: SO Reference The “SO Reference (Internal Agency Number)” is a free text field that is not publically reported. Enter additional information/descriptive text as required.



Step 11: SO Notice Identifier The “SO Notice Identifier (AusTender2 Number)” is the reference number of the Standing Offer arrangement that the contract has been entered into under, if the contract was procured from a panel. Enter the Reference Number in the Our Reference field (e.g. SON121212). A list of Panel Reference Numbers can be found by searching AusTender.

Step 12: Consultancy The “Consultancy” box is used to flag consultancy contracts for reporting purposes. Leave blank for non-consultancy contracts (General/Personnel Hire or Capital Expenditure).

If the contract is flagged as a consultancy Use the selector icon to display the drop-down list to choose a reason for the engagement. (e.g. Skills not currently available in the agency)

Step 13: Confidentiality “Contract Confidentiality” is used to report contracts that contain information and/or clauses agreed as being confidential.

Confidentiality Reason – use the Selector icon to display a drop-down list to choose a reason for Confidentiality (e.g. Privacy Act 1988). Select ‘Other’ to provide specific details not included in the drop-down list, details must be entered in the Other Description field.

Note: General confidentiality clauses/provisions and Deeds of Confidentiality are not reported.

“Output Confidentiality” is used to report contracts where the information obtained or generated as a result of performance of the contract is agreed as being confidential.

Output Confidentiality Reason – use the Selector icon to display a drop-down list to choose a reason for Output Confidentiality (e.g. Secrecy Provisions). Select ‘Other’ to provide specific details not included in the drop-down list, details must be entered into the ‘Other’ Description field.

Step 14: Production Run/Gazettal Run Production Run Section: “Gazettal Run No” and “Gazettal Run Post Date” are to be left blank.




Step 15: Check

Click the Check button the system checks the data for errors. If there are no errors, the Gazette document complete message will be displayed at the bottom of the screen.

Step 16: Continue

Click the Transfer button to save the gazettal data to the contract and continue.

Completion The system displays a message in the Status bar referencing the Type of Contract created and the Contract number allocated by the system, e.g. "Consultancy General created under the number 2100003275”.

Ensure that you write this number down.



Attaching Documents Select Display Contract from the menu.

Step 1: Enter Agreement (contract) number and press enter

Step 2: Click on the Services for Object icon located in the top right of the screen.

Step 3: From the dropdown menu, click on Create > Create Attachment

Note: In the Portal you may get the following message:

Step 4: Click “Yes” and wait for redirection to a browser window.



Step 5: Search the browser and select your document you want to attach. Click Open to continue.

Note: The system will give you a confirmation message.

Step 6: Check that your document is there, by clicking the services button again, then select

“Attachment List”.

Step 7: Continue icon.



Contract Workflow This function allows you to confirm who will Release the Document.

Step 1: Select Display Contract from the menu.

Step 2: Enter Agreement (contract) number and Click on Overview icon.

Step 3: Click on the Services for Object icon located in the top right of the screen.

Step 4: From the dropdown menu, click on Workflow > Workflow Overview.

Step 5: The following pop up screen will display.

Step 6: Ensure that the most recent title line of the “workflow for release of contract” is highlighted in yellow (there will only be one line unless there have been changes made to the contract).



Step 7: Move your cursor down and click on the link under the heading Agent or “Information”

.

Step 8: This screen will show the recipient for the release of the contract, this will be whoever the next delegate for approval will be on this contract, in this case the contract is sitting in Jacqueline Hattingh’s Portal inbox.

Step 9: Should you feel there is an error with this recipient, please send a message to Service Desk-SAP

mailto:[email protected]



Printing the Contract MENU PATH Portal > Home > Procurement > Contract > Print / Transmit

Step 1: Enter contract number (eg 2100003275) under document number.

Step 2: Change processing status to: 1 (Successfully processed - Released) – Note that you are not able to print a contract until it has been released.

Step 3: Click Execute icon.

Step 4: Tick the box on the left side of the screen next to the green tick and NEU.

Step 5: Select Display Message button.



Step 6: Select Print icon, only print page 1, and follow the normal network

prompts for Followme Print function.