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Object documentation Purchasing Contract 


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, limit confirmations, and invoices are released against the contract.


A purchasing contract (also referred to as a “contract”) is a purchasing document within the mySAP Supplier Relationship Management (mySAP SRM) solution that the strategic purchaser negotiates with a vendor, outlining the terms of agreement between the two parties. The strategic purchaser typically creates a contract as soon as it becomes clear that the relationship with a vendor will be long-term.

Companies use contracts to purchase goods and services from vendors at agreed prices and conditions, such as rebates and quantities to be ordered.

Once a contract has been created, it can be used for sourcing purposes in the following ways:

·  By strategic purchasers to find sources of supply to fulfill purchase orders

·  By employees when ordering from the company catalog

Contracts can be uploaded to the company catalog so that employees can use contracts for sourcing directly from the catalog. For more information, see Upload of Contracts to a Catalog.

Contracts can also be included within a contract hierarchy. This facilitates negotiating and changing related contracts because changes made to the contract at the top of the hierarchy cascade down to the subordinate contracts in that hierarchy. For more information, see Contract Hierarchy Definition.


Contracts usually consist of two distinct parts:

·  Header data

·  Item data


You can also create a basic contract that does not contain any item data.

Contracts have different statuses, depending on the stage of the contract lifecycle. The table below explains some of the statuses:

Name of Status



You set this status after the contract is complete. This status must be reached in order for the contract to be available for sourcing and so that you can create purchase orders or invoices against it.


If follow-on documents exist, this status is irreversible.


The system sets this status as soon as the validity period is in the past or the header target value of the contract is exceeded.


You can search for all expired contracts, thus allowing you to negotiate these expired contracts further. If you want the owner of the contract to receive an inbox message once the contract expires, the system administrator can schedule a job to run the report Check Purchasing Contract Data.

In Negotiation

You set this status if a contract had the status Held when you choose Negotiate.

In Renewal

You set this status if a contract had the status Released when you choose Negotiate.


You can set this status to temporarily remove a contract from being taken into consideration as a source of supply.


You set this status if a contract has expired or if no more releases are to be made.


This status is irreversible. You can continue to find closed contracts using the search and they can still be used as templates.


Along with the global outline agreement, the contract is one of the central business objects of the Contract Management application in mySAP SRM.

Contracts are also used with the following functions and components within mySAP SRM:

·  SAP Bidding Engine

·  Sourcing

·  SAP NetWeaver Business Intelligence (BI)

·  Search and Classification (TREX)

For more information about how these functions are integrated with the purchasing contract, see the Integrationsection of the document Global Outline Agreement.


See also:

Contract Creation

Processing Contracts

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