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Former Member

Migration of legacy contract release values into ECC

Hi Experts,

I am writing to get any inputs/ideas you may have on legacy contracts migration in MM.

Scenario: Let's say the contract is of total value 100000 AUD and they have consumed 70000 AUD already, if we do not bring in the 70000 AUD in the release history, we lose the control that prevents purchase beyond the next 30000 AUD off this contract.

This release being in the form of open or closed purchase orders, I have the following questions:

1. What is your experience with migrating the release value for the active legacy contracts to ECC?

2. Do you normally load the closed and open purchase orders against the active contracts to let the system update the release values?

3. If yes, how are the follow-on processes (GR, invoice and accounting) handled in this case?

4. If not, is there any way to programmatically update the release values?

I thought about loading only the delta value (remaining unconsumed value) as the total value of the contract, but I see two issues with it in our project:

1. Ours is a case of SAP CLM being the leading system for contracts and the total  value of the contract is pulled through from the master agreement to generate the legal contract document that is shared with the supplier. In addition, amendments would happen in CLM on the total value. Hence we cannot afford to load only the unconsumed value in CLM

2. Even if we manage to customize the interface to send through the unconsumed value from CLM from a custom field,

     a. this would involve a constant maintenance of this value in CLM for amendments

     b. true spend information is lost because of missing total information

Any thoughts you may share on this migration would be of use to me.

Thanks & Regards,

Subhasini

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2 Answers

  • Best Answer
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    Former Member
    Oct 26, 2015 at 02:23 PM

    Hi,

    No way to update programmatically the release values for your open contract and I do not think any business will agree!

    Depends on business requirement - you can proceed but what about real information on payment of 70000 AUD ?

    As you are migrating you can create a new contract with value 30000 AUD with  legacy contract document type ZLWK or ZLMK- if the all  payment 70000 AUD done.

    OR

    Create contract with 100000 AUD and based on follow-on processes (GR, invoice and accounting)- you can go for following:

    Create release order/call off with legacy release order/call off document type(ZRNB) with respect to contract for 70000 AUD

    Create goods receipt document with respect to release order/call off for value 70000 AUD

    Create invoice with respect to release order/call off for value 70000 AUD

    Once above done you can create new release order/call off with 30000 AUD with release order/call off document type(NB)

    For more refer on similar type on how to handle open PO migration

    SAP PO's migration- | SCN

    Regards,

    Biju K

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  • Oct 26, 2015 at 02:13 PM

    1. What is your experience with migrating the release value for the active legacy contracts to ECC?

    As per your example you only bring open value, in your case 30,000/ AUD. You can not bring over release valye

    2. Do you normally load the closed and open purchase orders against the active contracts to let the system update the release values?

    As a best practice, you only load Open PO Qty, this means if you PO of 100.. and you have GR 20 .. Open PO qty is 80 ..will go to new system ... Only Open PO Qty..

    For Cutover- You do not take reference of contract .. if you are considering that PO will have reference of contract then you have calculate Release value based on OPen PO qty .. then add that value to your contract .. Now you create your contract first .. then you have to mention your contract in the PO so that system can consume release value.. but I would recommend .. create PO with Open PO qty without any reference

    3. If yes, how are the follow-on processes (GR, invoice and accounting) handled in this case?

    _ You can not take Closed PO to new system.. so PO history is out of question... Golden Rule.. Only PO Qty

    4. If not, is there any way to programmatically update the release values?

    No

    I thought about loading only the delta value (remaining unconsumed value) as the total value of the contract, but I see two issues with it in our project:

    1. Ours is a case of SAP CLM being the leading system for contracts and the total  value of the contract is pulled through from the master agreement to generate the legal contract document that is shared with the supplier. In addition, amendments would happen in CLM on the total value. Hence we cannot afford to load only the unconsumed value in CLM

    As you are migrating, I think change management should communicate to vendors that there is change in the system and values will reduce..But I am not expert on CLM so can not comment much

    2. Even if we manage to customize the interface to send through the unconsumed value from CLM from a custom field,

         a. this would involve a constant maintenance of this value in CLM for amendments

         b. true spend information is lost because of missing total information

    Any thoughts you may share on this migration would be of use to me.

    Add comment
    10|10000 characters needed characters exceeded