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Former Member

Contract Release Value is not updated with Confirmation or Invoice value

The release value for a contract in SRM EBP shows the value of purchase orders created using that contract. It does not take into account confirmation and/or invoice values.

For example I create a PO for 10 items at £100/each using Contract ABC. The total value of the PO is £1000 and the release value contract ABC would be £1000. If I then only confirm and invoice 5 items (£500) for the PO, the release value of contract ABC stays at £1000 even though I would expect it to update to £500

Therefore the release value of the contract could be incorrectly overstated if purchase orders are created against the contract but not actually invoiced/confirmed for their total value.

Please could you confirm the correct functionality and how I could find out the the true invoice value of purchases made using a contract?

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5 Answers

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    Former Member
    Oct 29, 2007 at 02:24 PM

    Hi

    <u>Which SRM and R/3 versions are you using ?</u>

    <b>Meanwhile, please go through the following SAP OSS Notes, which will help in this case -></b>

    Note 622045 Net value in release overview of contract is incorrect

    Note 493519 Release quantities are not updated

    Note 1108322 BBP_CONTRACT_CHECK wrong calculation of values

    Note 1102886 Contracts: Lesser Field length for Target Value

    Note 1082548 Check of Released quantity and released value in contract

    Note 656181 Release synchronization of releases on services

    Note 874920 Currency not allowed to be changed for a 'Released' Contract

    Note 703771 Resetting release values during purchase order item deletion

    Note 643823 BLAREL: Incorrect values in service segment

    Note 519879 BBP_CTR_MAIN: No message when values in Contract are reset

    Note 520734 Target value not converted if currency is changed

    Note 528897 Documents not displayed in contract release order overview

    Note 430373 BBP_CON_MNT: No releases available

    Note 491993 Entry of contracts with target values

    Note 437491 Purchase contract: Incorrect update of the call-off values

    Note 406799 BBP_CON_MNT: Fields after contract release ready for input

    Note 398168 Purchase contract: Target value is not changed

    <b>Do let me know.</b>

    Regards

    - Atul

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    Former Member
    Oct 29, 2007 at 05:14 PM

    Thanks very much for the advice so far.

    We are using SRM 5.5 and ECC 6.0. However we are not holidng contracts in ECC but invoice verification is being carried out in ECC only.

    I have had a look through those OSS notes, but none of them seem to describe the issue exactly.

    It would be good to get a confirmation of what is standard. Here;s the scenario again:

    1) Create PO in SRM for 2 items @ £500 against contract

    (Release value of contract says £1000)

    2) Carry out goods receipt for 1 item (£500) in SRM and click the last delivery tick box

    (Release value of contract says £1000)

    3) Enter invoice in ECC for £500 to complete the procure to pay process

    (Release value of contract says £1000)

    Is this expected? Probably my fault, but I couldnt quiet understand Sundeep's explanation.

    Thanks in advance.

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    • Former Member Former Member

      Hi Emily,

      Here is the explanation to your question:

      <b>"The quantity and value of the purchase orders, limit confirmations, and invoices are released against the contract."

      "In what context is it refering to limit confirmations and invoices? "</b>

      <b>Sundeep:</b>

      Vendor contract is fullfilled by issuing orders against the contract. When a release order is created for the contract, the system automatically updates the released values in the contract. The release order value is calculated from the <b>total of the open order and delivery values, plus the value that has already been billed to the value contract.</b>

      System checks this value with "Outline agreement target value" in value contract and issues warning or error message depends on configuration settings in value contract item catagory.

      <b>To keep it simple it is the Sum of Open Orders(Delivery or GR not Completed) + Open GR Value (Invoice not completed) + Invoices = Sum of Initial PO</b>

      Sorry, cant give a better explanation than this, and if you find anything that refutes my thinking, please share it with the community.

      Hope this info helps !!

      Pls assign points for usefull answers !

      Sundeep

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    Former Member
    May 31, 2007 at 04:58 PM

    p.s. we are not using BW here so cannot get the information that way. Is there another way?

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    Former Member
    Oct 29, 2007 at 12:02 PM

    We still have not got an answer to this problem. I have a OSS message outstanding with SAP, but they have not found a solution either. I would have thought others would have had this problem? I can't believe we are the only ones.

    If anyone has any ideas or suggestions, it would great to hear from you.

    thanks,

    Matt

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    • Former Member

      Hi Emily,

      I think the release value of a contract is definitely based on the PO value. (i.e. for example $1000 PO created in a $10,000 Contract). For business, when a PO is genereated for $1000, they have commited $1000 from a $10,000 contract, irrespective of the business receiving the goods or invoice being posted.

      Hence, the released value is the value of the PO.

      In case you want to reflect the right amount of the released value, depending on GR or Invoice, and if you think that you have received all your goods and dont expect anymore delivery, then the update of the qty and amount shall be reflected in a <b>CHANGE ORDER</b>, which thereby will reflect on your released value in a contract.

      Hope this info helps !!

      Pls assign points for usefull answers !!

      Sundeep

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    Former Member
    Jun 09, 2015 at 02:42 PM

    Emily, we are having the same issue as you with our recent SRM 7 upgrade.  Did you ever find a solution where the contract release value gets updated (increased value) when the Last Delivery flag is set on a PO line item and the quantity received is less than the PO quantity?

    Any help will be appreciated

    Thanks
    Eric

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