Contract Use and Contract Budget

Use

Seasonal procurement supports both automatic/manual contract determination and the processing of purchase order documents with and without reference to a contract.

Contract use in the order list

  • You can configure an automatic contract determination for the order list.

  • You can configure grouping by contract.

    You do this in Customizing for Seasonal Procurement under Start of the navigation path Purchase Order Handling Next navigation step General Settings Next navigation step Process Control Table for Grouping End of the navigation path .

Contract use with manual order creation

For purchase order documents that were created manually, the system checks whether there are any existing contracts for items, and issues a message if this is the case. You can start the determination manually using a pushbutton.

Order processing with reference to contract (release order)

When you create a purchase order with reference to a contract, the system first checks the contract budget generated by OTB reservation(see OTB-Relevant Contracts ). You have the following options for when the contract budget is insufficient:

  • You can configure the system so that it issues an error and does not create the purchase order.

  • You can configure the system so that it issues a warning and, if necessary, uses the available budget without contract budget.

You do this in Customizing for Start of the navigation path Seasonal Procurement under Next navigation step Open-To-Buy (OTB) Next navigation step OTB Check: Maintain Document-Type Dependent Settingsfor the document type ‘contract’. End of the navigation path

Example Example

You create a release order for the value of €1000. The contract budget is €500. The system issues a warning. For the outstanding amount, you can use the available budget (without contract budget) and/or use the options in OTB procurement.

End of the example.
Order document processing without reference to a contract

When creating a purchase order without a reference to a contract, the system checks the available budget, rather than a contract budget. You have the following options if the budget is insufficient:

  • You can configure the system to behave as in the case of a negative OTB check and therefore not to use a contract budget.

  • You can configure the system to always use a contract budget, if available.

You do this in Customizing for Seasonal Procurement under Start of the navigation path Open-To-Buy (OTB) Next navigation step OTB Check: Maintain Document-Type Dependent Settingsfor the document type ‘purchase order’. End of the navigation path

See also:

Contract Monitoring