Contract Processing in CRM 

Purpose

The business process Contract Processing in CRM comprises the steps you require in order to create and process sales contracts in the SAP CRM system. 

Process Flow

The following process runs in SAP CRM:

       1.      Create sales contract

You create a quantity or value contract in SAP CRM with the following information:

○     Products, partner/product ranges (PPR) , product category

○     Business partners, such as sold-to party, ship-to party, and responsible employees

○     Contract term

       2.      Choose sales agreement

If you have created a sales agreement for the customer and products, you can assign this sales agreement to the contract so that the product list and prices of the sales agreement are copied to the contract. For more information, see Sales Agreement Processing in CRM.

       3.      Negotiate conditions

You agree on the conditions of the contract with the customer, for example the contract term or quantity discounts. This can take place across various sales channels, such as via a Web shop, directly over the telephone, or during a sales visit.

You can store the price agreements in the contract.

       4.      Maintain target and estimated values

You determine how much of the product the customer can release by entering a target monetary value if you are working with value contracts, or a target quantity if you are working with quantity contracts. 

If you use quantity contracts you can also enter an estimated monetary value for the contract that can later be used for reporting purposes, such as analyzing expected sales revenue or the sales pipeline figures.

       5.      Maintain authorized partners

You can define several sold-to parties or ship-to parties who are authorized to release products from a contract. For more information, see Authorized Partners.

       6.      Maintain cancellation details

You can use a cancellation procedure to specify who is authorized to cancel a contract, and the notice period. For more details, see Cancellation

       7.      Create follow-up actions

If you want to generate automatic follow ups, for example to inform the employee responsible for a contract of its impending expiration, you can automatically plan and trigger them. For more information, see Basic Functions ® Actions  ® Actions for Contracts.

       8.      Perform credit check

You can check the credit worthiness of the customer before the contract is approved. For more information, see Credit Management.

       9.      Release items

You send the contract for approval to the appropriate parties, such as the sales manager or the legal department. Once the contract has been approved, you can release it for use by changing the status of the items in the contract to “released”.

Result

The customer can now release products from the contract by creating sales orders. For more information, see Release Order Processing.

Contract data can also be sent to the SAP Business Information Warehouse (BI) to create contract analyses.

 

Special Features for CRM Mobile Sales

You can display contracts and create release orders in Mobile Sales but you cannot create or change contracts in Mobile Sales.