Guaranteed Minimum

You can use this function in purchasing contracts or mixed-use purchase orders in SAP Supplier Relationship Management (SAP SRM), Procurement for Public Sector (PPS), to obligate funds for a contract line item or order-type line item. This is useful, for example, if you want to guarantee your suppliers a minimum value for which you will purchase goods or services. You can reserve funds for the guaranteed minimum amount when releasing the contract or ordering the mixed-use purchase order. Note that the commitment of funds changes from contract commitment to purchase order commitment when the release order is ordered.

Integration

You can use this function in the following business scenarios:

Public Sourcing and Tendering
Contract Management and Administration
Operational Procurement
Procurement Services

Note Note

The guaranteed minimum in PPS is similar to the commitment plan that is available for purchase contracts in SAP ERP. For more information, see SAP Help Portal at http://help.sap.com/ under Start of the navigation path SAP ERP Next navigation step SAP ERP Central Component Financials Public Sector Management Funds Management Recording Actual and Commitment Data Integration with Materials Management Commitment Plan for Purchase Contracts End of the navigation path .

End of the note.

Prerequisites

You have activated the business function SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1). Note that you can only use this business function in conjunction with the business function SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1). In other words, you must activate both business functions.

You have done the following in Customizing for Supplier Relationship Management under Start of the navigation path SRM Server Next navigation step Procurement for Public Sector Functions Application Settings Guaranteed Minimum End of the navigation path :

You have activated the Guaranteed Minimum fields by choosing Activate Tab and Fields.
Note
If you select the Use Non-Funds-Management Fields in Earmarked Funds checkbox in Customizing, for example the following information is included in the account assignment data when the system creates an earmarked funds document for the guaranteed minimum:
- Cost center
- General ledger account
End of the note.
You have activated a warning to notify purchasers that the guaranteed minimum of an SAP SRM contract may not be fulfilled before the contract expires. You have done this under Activate Check for Fulfillment of Guaranteed Minimum.

For more information, see SAP Solution Manager under Start of the navigation path SAP SRM Next navigation step Configuration SAP SRM <number of current release>, PPS Funding Guaranteed Minimum End of the navigation path .

Features

You can specify a guaranteed minimum amount and related Funds Management or accounting data in the following procurement documents:

Contract, either for the entire contract at header level or for individual items at item level
Mixed-use purchase orders, only at item level and for lines items for which an order type is selected
RFx, at item level

The guaranteed minimum amount is also displayed in RFx responses if it was specified on the preceding RFx.

The following fields related to guaranteed minimum are available:

Field	Document	Location in Document	Purpose
Use accounting data only	Contract, item level Order type line item in purchase order	Account Assignment Guaranteed Minimum	You select this checkbox if you want to automatically take over the accounting data specified in the contract to the releasing purchase order as a template, but you do not want the system to reserve funds in Funds Management. The system does not create an earmarked funds document.
Guaranteed Minimum Amount	Contract, header or item level Order type line item in purchase order	Account Assignment Guaranteed Minimum	Minimum amount that you guarantee to pay to the supplier. The SAP ERP system reserves funds for this amount by automatically creating an earmarked funds document for the guaranteed minimum amount.
Company Code	Contract, header or item level Order type line item in purchase order	Account Assignment Guaranteed Minimum	Indicates the company code because every earmarked funds document is created for a specific company code and account assignment.
Earmarked Fund Document Number	Contract, header or item level Order type line item in purchase order	Account Assignment Guaranteed Minimum	Provides a direct link to the earmarked funds document. Note: This document number is only available when the budget has been approved and an earmarked funds document has been created.
Initial Amount	Contract, header or item level Order type line item in purchase order	Account Assignment Funds Reservation	Indicates the amount that is reserved at the time when the contract or mixed-use purchase order is released.
Remaining Amount	Contract, header or item level Order type line item in purchase order	Account Assignment Funds Reservation	Indicates the amount that remains after release orders have been created against the contract or mixed-use purchase order.
Obligation Created On	Contract, header or item level Order type line item in purchase order	Account Assignment Funds Reservation	Date when the earmarked funds document was created
Obligation Changed On	Contract, header or item level Order type line item in purchase order	Account Assignment Funds Reservation	Date when the earmarked funds document was changed. Note that you can change the earmarked funds document manually.
Guaranteed Minimum Level	Contract, header level	Header Basic Data	Indicates whether you have specified a guaranteed minimum amount at header or at item level.

More Information

Working with Documents with Guaranteed Minimum

Earmarked Funds

Integration with SAP ERP Funds Management