Framework Agreement

[former_member797771]

Is it possible to enter one global Framework/Umbrella Agreement which has multiple "sub-agreements" with the various cost centers applied into SAP itself? The vendor would then be able to invoice the "sub-agreements" but the entire Contract would be managed at the Framework level.

[former_member751964]

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[IngridNikkels]

Please let me first explain the 2 solutions we offer in S/4HANA for Managing and Creating contracts.

With SAP S/4HANA for Enterprise Contract Management and Assembly (E-CMA) we close the gap in our portfolio for the management of legal documents. In the past in ERP we only offered solutions to manage operational contracts (in Procurement and Sales) with commercial data / line items.

SAP Enterprise Contract Management and Assembly, is a suite of applications and is the next generation for the creation and management of legal documents in enterprises. It can be integrated into all core business processes, assembles all types of documents based on templates, text blocks, rules and simultaneously store all documents in a central online repository.

Enterprise Contract Management (E-CM): Manage the lifecycle of all legal content (sell-side, buy-side & corporate contracts, NDAs, policies & patents etc.) in one central repository, as a core capability of S/4HANA (On Prem or Cloud) which seamlessly integrates into core business processes.

Enterprise Contract Assembly (E-CA): Built on SAP Business Technology Platform for Template Experts to manage clauses & templates for creation of legal documents, integrating seamlessly with SAP Enterprise Contract Management for automatic assembly of buy & sell-side contracts & any other legal documents based on approved clauses and templates.

Global Framework/Umbrella Agreements can be managed in E-CM and created with E-CA and E-CM together based on a released template in E-CA.

Cost Centers and invoicing are details belonging to the operational part of the contract in S/4HANA.

A Legal Transaction is the central record in E-CM in which a legal Framework Agreement can be managed and linked to the operational contract in S/4HANA. Sub-Agreements can be created in seperate Legal Transactions and linked to the Framework agreement in order to keep everything together.

I will check how cost centers and invoicing is handled in MM Purchasing Contracts.