Contract Determination

Purpose

This process describes how contract items that are suitable for a billing dataset are determined and contract assignments created.

It is a system process that you cannot control manually. If the item category is relevant to the contract, the system performs this process automatically during sales document processing (creating and changing sales document items) and order billing.

The item category is relevant to the contract if you have selected the Relevant to contract indicator in Customizing when you defined the item category.

Note Note

If you have selected the Relevant to contract and Update indicators in Customizing, a billing dataset can be assigned to a contract and updated in the contract standing.

This means that the billing dataset can be granted discount conditions, can contribute towards contract fulfillment and settlement can be performed.

If you have selected the Relevant to contract indicator but have not selected the Update indicator in Customizing, a billing dataset cannot be assigned to a contract and updated in the contract standing. This means that the billing dataset can be granted discount conditions, but cannot contribute towards contract fulfillment and settlement cannot be performed.

If you create an offer item, you usually want to grant discount conditions on this item but it is not to contribute towards contract fulfillment and settlement is not to be performed.

You can select the Update indicator as follows in Customizing:

End of the note.

Define	Menu path
Item categories	SAP Media Advertising Management Sales Order Sales Documents Sales Document Item Definition of Item Categories

Prerequisites

Contract customers are to be granted the agreed discount conditions (discount, bonus, fixed quantity price) automatically on advertising services sold. You do not want to assign contracts to orders manually.

You have created contracts, entered orders and made all the relevant settings in Customizing:

Define	Menu path
Contract determination	SAP Media Advertising Management Sales Contract

If discount conditions are to be inherited in booking unit hierarchies or groups, you must create the booking units and business partner hierarchies first.

Note Note

If you have not selected the Assignments to unconfirmed contracts indicator in Customizing, billing datasets can only be assigned to contracts for which the Confirmed indicator has been selected on the Status tab page.

You can select the Assignments to unconfirmed contracts indicator as follows in Customizing:

End of the note.

Define	Indicator	Menu path
Allow contract assignments to unconfirmed contracts	Assignments to unconfirmed contracts	SAP Media Advertising Management Sales Contract Settings for Specific Sales Areas General Settings Contract determination tab page

Process Flow

During contract determination, the number of contract items is reduced by excluding contract items in stages using the elimination process in the check logic.

Contract determination is performed as follows for each billing dataset that has been generated for a sales document item:

In the first step, the system imports existing contract assignments.

If you change a sales document , the system imports existing contract assignments when you confirm the sales document data.
If you create a sales document , no contract assignments exist to be imported. The first step in the check logic is not performed and the process begins with step 2.
If you bill an order , the system imports existing contract assignments.

In the second step, the system creates contract assignments for each billing dataset that has been generated for a sales document item. The check logic that is performed here is described in the Creation of Contract Assignments process.

In the third step, the system updates the contract assignments.

The system deletes contract assignments that can no longer be determined during contract determination.
Contract assignments that are determined again during contract determination are changed.
The system adds contract assignments that are determined for the first time during contract determination to the existing contract assignments.

Contract assignments that are determined and qualify for discount are entered in the billing datasets. The system displays the following data on the billing dataset screens in sales document processing:

Contract and item numbers to which a billing dataset can be assigned.
Rate indicators that specify whether contract assignments qualify for discount and bonus.
Discount and bonus records that are granted to contracts.

You can enter up to three contract assignments that qualify for discount in a billing dataset.

All contract assignments determined that do not qualify for discount are not entered in the billing dataset. If contract assignments that do not qualify for discount are created during contract determination, the system displays these assignments on the Contract Assignments overview screen. If you want to display all contract assignments that have been created during contract determination, you should proceed as follows:

Display contract assignments	Screen	Menu path
Order	Item or billing dataset document level	Contract tab page
Contract	Business data, Item overview, Assigned sales areas	Assignments pushbutton

In the fourth step, the system updates the contract standing.

The system adds contract assignments determined here to the contract standing.
If the target to be sold increases and the Discount/price adjustment in the order or Discount/price adjustment for interim settlement indicator has been selected, the system displays the discount conditions that have been determined during discount determination as follows in the contract:
1. If the Discount/price adjustment in the order indicator has been selected in the contract, the updated discount conditions (discount from scale, bonus from scale, fixed quantity price from scale) are displayed.
2. If the Discount/price adjustment for interim settlement indicator has been selected in the contract, the updated discount conditions (discount from scale, bonus from scale, fixed quantity price from scale) are only displayed in the contract if an interim settlement has been created for this contract.
3. If the Change target quantities for rolling discount indicator has been selected in Customizing, the system displays the updated target to be sold in the Agreed field in the contract. This means that even if the number, quantity or sales volume sold exceed the agreed target to be sold, these figures are nonetheless identical.
4. If this indicator has not been selected, the system does not display the updated target to be sold here.
The system transfers the updated discount conditions to the billing datasets for the same sales document item that have already been assigned to the contract item at an earlier stage if the relevant settings have been made in Customizing.
The system checks whether the contract is fulfilled.

If this is the case, the system selects the Contract fulfilled indicator .

In the fifth step, the system transfers the discount conditions to pricing. Up to three discount conditions can be transferred to pricing for each billing dataset.

If a contract is found but no prices can be determined during pricing, the system informs you that the gross contract is missing and that no assessment basis can be entered in the contract assignment.

In the sixth step, the system enters the assessment bases from the pricing procedure in the contract assignment. A billing dataset can have up to three assessment bases.

When you save the sales document data, the system updates the contract assignments and the updated contract standing.

The Contract incomplete status characteristic in the item status indicates whether contract determination can be performed successfully. This status characteristic is selected if a user skips a conflict instead of determining the contract to which the billing dataset is to be assigned. It is also selected if contract determination cannot be performed because for example no billing datasets could be generated.