Friday, June 3, 2011

Outline Agreement-Contract


Which all are the two types of contracts?
  Value Contract and quantity Contract.

Quantity contract

a)      A contract is an outline agreement between you and your customer that is valid for a certain time period.
b)      The contract does not contain any schedule lines, delivery quantities, or delivery dates.
c)      You can agree on special price agreements or delivery times.
d)     The customer fulfills the contract with individual release orders.
e)      Schedule lines are created in the release order when it is placed.
f)       Release orders are created with reference to a contract.

Value contract

a)      In value contract the customer agrees to purchase a fixed dollar value (target amount) of goods and services during the defined period.
b)      The value contract can contain other agreements between you and your customer that are checked in the release orders, such as:
a.       Special price agreements
b.      Customer restrictions
c.       Material restrictions.

                        Materials for Value Contract

    1. If the material needs to be restricted in a release order for a Value Contract then it can be achieved either through a Product Hirarchy or Assortment Module for value contracts.
    2. If both the product hierarchy and the assortment module are maintained in the document, all of the materials that belong to one or other of the material groups are valid for the release order.
    3. If nothing has maintained then all the materials defined in sales can be released unless there are any other restrictions in copying control at item level.
    4. These materials are also limited in that they must be permitted for the sales area assigned to the value contract (copying control).
    5. Assortment modules for value contracts are maintained in the master data for products, in which you can define a validity period for each material in the assortment module.     

Value contract – release


    1. You can release the contract with individual release orders which you can process like the usual standard orders.
    2. Delivery quantities and times are stored in the schedule lines for the release order.
    3. You can create releases in any currency and the total value is updated in the currency of the contract.
    4. Once you create a release order the system will check the release order value with the target value specified in the contract. In customizing you can decide how the system should react when the release quantity excedded the target quantity
    5. Values in the contract can only be updated when the assignment is defined at item level.

Value contract - Billing

    1. You can either bill the value contract directly (Delivery or Order related) or you can bill each release order.
    2. A billing plan allows you to bill the contract for several dates and partial quantities at once. The system automatically adjusts the open billing dates if you make a subsequent change to the target value in an item in the value contract.
    3. The system does not allow you to automatically bill value contracts that have not been completely released.

Two types of value contracts
                                                              i.      WK1 General Value contract: This order type allows you to refer to different materials and services                        according to the selection options described earlier.
                                                            ii.      WK2 Material-related value contract: This is used when the contract contains exactly one material (for                example, configurable).

Partners authorised to release in a contract


In the value contract more than one Sold-To-Party (AA- Contract relevant Sold-To-Party) and Ship-To-Party can be specified as partners.

            Date determination

To propose contract duration automatically in a contract in the sales document type for contract you must define:

1.      Date rule ( Specify when the contract should start For Example: todas date or installation date)
2.      Duration category ( Define the duration of the contract, thus the end date)
3.      If you assign a contract profile to the sales document type then the syatem will automatically determine the default values specific to the contract such as:
Ø  Rules for determining start and end dates
Ø  Duration category
Ø  Subsequent activities
Ø  Cancellation procedures

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