Renewal of Contracts - SAP Documentation

Use

This function allows the system to renew contracts.

Integration

It is part of Sales and is available to you in the Contract menu as follows:

Function	Screen	Menu path
Change contracts	Initial screen, Business data	Edit Renewal
Monitor contracts	Initial screen	Monitoring Contracts For renewal

Prerequisites

You want the system to create follow-on contracts for contracts that are no longer valid.

You do not want to create follow-on contracts manually for regular customers who expect to sell the same number of advertising services in the following year as the number sold in the previous year. You want to use automatic renewal of contracts as possible entries.

When creating the contracts, you have selected the Renew automatically indicator on the Status tab page and made all the relevant settings in Customizing:

Define	Menu path
Contract renewal	SAP Media Advertising Management Sales Contract Settings for Specific Sales Areas Make General Settings Contract renewal tab page
Preassign contract attributes	SAP Media Advertising Management Sales Contract Settings for Specific Sales Areas Preassignment of Contract Attributes

Caution Caution

Contracts for renewal have been confirmed and final settlement has not been performed. You cannot renew contracts if this is not the case.

End of the caution.

Features

If you have selected the Renew automatically indicator on the Status tab page when creating contracts, they can be renewed as follows by the system:

Prerequisite

Procedure

You want to manually renew a contract with a validity period that has expired.

Choose Start of the navigation path Edit Next navigation step Renewal End of the navigation path from the Business Data screen or the initial screen in contract editing.

You want to renew all contracts with a validity period that has expired in collective processing .

Choose Start of the navigation path Monitoring Next navigation step Contracts For renewal on the initial End of the navigation path contract monitoring screen .

This function allows you to determine all contracts that are to be renewed by a particular date. You can determine all contracts in which the Renew automatically indicator has been selected that have not yet been renewed. If you have selected the Perform contract renewal indicator, the system renews all contracts that match the selection criteria.

You have defined the lead time for renewal and the period that can fall between the end of the validity period for preceding contracts and the start of the validity period for follow-on contract in Customizing. You can change the lead time for renewal defined in Customizing when you determine the contracts to be renewed.

The following selection criteria for determining and renewing contracts are available to you:

Organizational data
Contract data
Indicators
Additional indicators for evaluation and output generation.

You can schedule contract renewal as a batch job that is performed by the system on a regular basis in the background.

Creation of follow-on contracts

During contract renewal, the system displays the renewal date and the identification key for the follow-on contract on the Status tab page in the preceding contract. The system selects the Contract renewed indicator. The identification key for the follow-on contract is displayed in the preceding contract.

The system copies contract items, assigned business partners and sales areas from the preceding contract into the follow-on contract.

Validity period

The validity period for the follow-on contract is preassigned from Customizing. If you have specified that the validity period commences at the start of the month of the first placement and the standard validity period of a contract is twelve months when you preassigned the contract attributes in Customizing, the system preassigns the start and end of the contract and calculates the validity period for the follow-on contract for the first advertising service sold.

If you entered the validity period for the preceding contract manually, the system calculates the validity period for the follow-on contract from the standard validity period. The point at which you renew the contract and the maximum interruption that has been defined in Customizing for contract renewal determines whether the validity of the follow-on contract directly follows the preceding contract.

You can define the maximum interruption for contract renewal as follows in Customizing:

Define	Menu path
Maximum interruption for contract renewal	SAP Media Advertising Management Sales Contract Settings for Specific Sales Areas Preassignment of Contract Attributes

Values

When contracts are renewed, values from preceding contracts are copied into the follow-on contract regardless of whether the preceding contract is fulfilled, over-fulfilled or not fulfilled.

If you have selected the Increase discount for over-fulfillment indicator in Customizing, values from an over-fulfilled contract are copied into the follow-on contract as follows:

If the over-fulfilled contract has reached the next discount level, the system copies this discount into the follow-on contract and enters the target agreement as of which the discount level is achieved in the follow-on contract. The actual advertising services sold are not entered in the follow-on contract.

If you have selected the Reduce discount for non-fulfillment indicator in Customizing, the system copies values from a contract that is not fulfilled into the follow-on contract as follows:

If the non-fulfilled contract has not reached the discount level that has been achieved according to the target agreement, the system copies discount from a lower discount level into the follow-on contract and enters the target agreement as of which the lower discount level is achieved in the follow-on contract. The actual advertising services sold are not entered in the follow-on contract.

Caution Caution

If the target agreement cannot be set using a scale quantity or a scale value when the follow-on contract is created because the target agreement is zero and this is not admissible, the system increases the target agreement so that the next scale value or quantity is achieved.

End of the caution.

You define control of discount transfer as follows in Customizing:

Define	Indicator	Menu path
Discount transfer	Increase discount for over-fulfillment, Reduce discount for non-fulfillment	SAP Media Advertising Management Sales Contract Settings for Specific Sales Areas Preassignment of Contract Attributes

If a contract is renewed before the end of the validity period, billing datasets are assigned to the contract in whose validity period they fall. This means that billing datasets are either assigned to the preceding contract or the follow-on contract.

Control contract renewal

In addition to the indicators described above, the following additional indicators are available to you in Customizing for controlling contract renewal:

Indicator	Use
Renew contracts without assignments	If you have selected this indicator, contracts for which no advertising services have been sold can be renewed. If you have not selected this indicator, the system displays an error message when renewing contracts for which no advertising services have been sold.
No renewal for agency orders	If you have selected this indicator, contracts for agencies cannot be renewed.
Confirm new contract automatically	If you have selected this indicator, the system selects the Confirmed indicator automatically in the follow-on contract. If advertising services that can no longer be assigned to the preceding contract due to the validity period being past are to be assigned to a contract during renewal, you must select this indicator in Customizing.
Send renewal notification immediately	If you have selected this indicator, the system generates renewal notifications that can be sent to the contract holder during renewal. If you have not selected this indicator, renewal notifications are not generated until the contract holder sells an advertising service.