Contract (SAP Library - Materials Management)

Contract

Use

When creating and processing contracts, you can enter data in the AFS system at SKU level. The AFS system also allows you to create multi-level contracts, which you can use to optimize planning. The contract at the highest level of a multi-level contract is the one that determines the total quantity of various releasable materials of a material group. With reference to this AFS contract, you can create several quantity or value contracts that specify the value at material or SKU level more precisely.

Features

Simple Quantity and Value Contracts

To create a contract choose Logistics ® Materials management ® Purchasing ® Outline agreement ® Contract ® Create. The processing of data at SKU level in simple contracts essentially corresponds to the procedure in all purchasing documents. SKU values can be copied from a reference object and from the purchasing info record and from grid control data (purchase grid).

Via

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you come to the SKU Overview screen from the item overview. You can then enter SKU values and specify the quantity and stock category for each SKU. In addition, you can set the contract complete indicator for each SKU. The system also displays the schedule line number and the additional material number.

In contracts you can round SKU values and specify quantities using a predefined distribution profile (presizing) just as you can in other purchasing documents.

In order to see which quantities can still be ordered at SKU level with reference to this contract, choose This graphic is explained in the accompanying text

Open target quantity. The system will display the still open quantities at SKU level. If one creates purchase orders with reference to this contract, the open quantities will decrease in the contract.

Multi-Level Contract

The AFS system allows you to build multi-level contracts and thus create contracts with various levels of detail in various planning periods. With this AFS function you can reserve capacities at your vendor already in an early planning phase by completing an AFS contract. This contract merely determines the total quantity, the material group, the selectable materials within the material group, and the validity period. You can create at a later time additional value or quantity contracts containing more detailed information at material or SKU level with reference to this contract. An AFS contract can only be called through another value or quantity contract, but not through a purchase order. The validity period of all value and quantity contracts that have been created with reference to another contract must be within the validity period of the superior contract.

Example: You close an AFS contract with your vendor in January in which you agree to accept 1,000,000 pieces of materials A and B of the material group T-shirts in the time period between July 1^st and December 1^st. Based on this contract the vendor can at that time already count on the production of certain quantities and reserve capacities for you. At a later point in time you specify in detail which quantities of which materials / SKUs you need. In April you close a quantity contract with reference to the AFS contract, which specifies that you want to obtain 7000 pieces of material A during the time period of July 1^st to September 1^st. You specify any SKU values in a third contract, which is created with reference to the level 2 contract.

Activities

In the AFS standard system you create an AFS contract with the agreement type AFSK. You can also define your own agreement type for AFS contracts.

Enter various selectable materials for further contracts in the AFS contract. Choose the item category M (Material unknown) in the item overview. Enter the total quantity and the material group and go via to the view in which you can enter individual materials and prices.

To see which quantities with reference to the AFS contract have been specified in other contracts, choose This graphic is explained in the accompanying text

Released qty.

If you create a contract for SKUs with reference to another contract for SKUs, you can have open target quantities at SKU level displayed. For this choose This graphic is explained in the accompanying text

in the standard toolbar to the right of the SKU table view. Then the input help (F4) will only offer you those grid values that are components of the superior contract. If you enter SKUs in the inferior contract that are not part of the superior contract or if the quantities of the inferior contract exceed those of the superior contract, the user sees either a warning or an error message, depending on the Customizing settings.