Cancellation 

Use

In order to determine when, why and by whom a contract may be cancelled, you can define a cancellation procedure that contains information on the cancellation parties, cancellation dates and cancellation reasons. Cancellation reasons provide particularly valuable information that can be sent to the SAP Business Information Warehouse to analyze your contract process.

Prerequisites

You must have created a cancellation procedure and assigned it to the appropriate contract type in the IMG for Customer Relationship Management under CRM  ® Transactions  ® Settings for Contracts  ® Cancellation.

Activities

       1.      When you create a contract, you can choose a cancellation procedure that is relevant for the contract type in the Cancellation tab page. 

       2.      If one of the parties decides to cancel the contract, you can enter the details in the Cancellation tab page. Depending on the cancellation procedure and the information you enter here, such as cancellation party, the system calculates when the contract can be cancelled, in other words, it generates a new contract end date.

       3.      Once the end date of the contract has been reached, the system sets the contract status to “completed”. It is then no longer possible to create release orders for the contract. For more information about what happens to a contract with completed status, see Completion Rules.