How to Create Master Contract ?

[Former Member]

Hi ,

Can anybody tell me purpose of Master Contract clearly and How to create it?I have been trying to create it but it is not allowing me to enter any sales docs types in the master contract and system is not allowing me to mention in the QC also.What could be the problem?

2.Material Determination-In the material determination screen i have created the record.It is working fine in the sales order(if i enter material 1 ,material 2 details are displaying).But same thing is not working in Cash Sales Document.Why?

3.What is the clear difference between Sales Order and Scheduling Agreement?

Reward Points for sure for the right answers

Venkat

[Former Member]

Thanks

[Former Member]

http://help.sap.com/saphelp_dm40/helpdata/en/6c/d6fb1906254d13b120e708ffacab71/content.htm

A Master Contract Management business object that depicts a number of account contracts arranged in a group or ranking order.

You can assign one or more participants to a master contract, in order to represent processes such as combined settlement, overdraft protection, and payment distribution and monitoring. The assignment can have a time limit.

A master contract forms a container that does not adopt any of the functions of a participant account. Postings can only be made to participant accounts, not to the master contract. However, the master contract can have attributes such as limits and financial conditions.

The system stores each change in the master data.

A participant can exist in more than one master contract at the same time, whereby these master contracts can be based on products with different features. For example, an account can participate in a combined settlement and also be used as a funding account for overdraft protection. Restriction: Does not apply to products with the feature Payment Distribution and Monitoring.

Only account contracts can participate in master contracts. Master contracts themselves cannot participate in other master contracts.

The system represents a master contract using independent contract elements (such as limit management or locks) and business partners.

The individual contract parts are not used exclusively for master contracts; it is only when they are linked together that they form a structure that enables a master contract to be depicted with its characteristics and options.

The relationship between the master contract and the related account contracts is also defined by the participant attributes.

A master contract is based on a master contract product, which in turn is based on the product category Master Contract.

The attributes and contract elements used in the Master Contract product category determine the scope of functions and descriptive characteristics.

The master contract product can enable further differentiation in the actual master contract. If it does not permit changes, the master contract must completely adopt the default values from the master contract product.

Master Contract Management:

This application component bundles contracts into master contracts and provides special processes and functions for these master contracts. You can use it, for example, to execute overdraft protection, or to distribute payments from a single account in the master contract to the participant contracts.

The application component bundles different processes and functions that you can also use separately:

· To grant preferential prices for a group of accounts of different bank products and different account holders, implement the Bundle Pricing process (combined settlement).

· To offer the transfer of a sum of cash from at least one funding account to a funded account, implement the Overdraft Protection process.

· To automatically process deposits and disbursements for a group of contracts according to specified rules via a higher-level contract, implement the Payment Distribution and Monitoring process.

You use an Implementation Guide (IMG) to implement the application component. Note that this also contains parts of the Implementation Guide (IMG) for Account Management, which you need to maintain only once.

Parts of Account Management were used for development and for the documentation.

The application component Master Contract Management provides the following processes and functions:

· Master Contract

· Overdraft Protection

· Combined Settlement

· Payment Distribution and Monitoring

[Former Member]

Dear Venkat,

<a href="http://help.sap.com/saphelp_erp2005/helpdata/en/dd/55fd0d545a11d1a7020000e829fd11/content.htm"><b>Master Contract</b></a> - The master contract is a document under which you can group contracts as lower level contracts. It contains the general terms which apply for all the lower level contracts over a specified period.

You group contracts as lower level contracts under a master contract to ensure that

• The terms in the master contract are granted in all the lower level contracts

• The data in all lower level contracts remains consistent

You can group the following documents under a master contract:

• Quantity contracts

• Value contracts

• Service contracts

The link between the master and lower level contracts is controlled by the referencing procedure which is assigned to the master contract type in Customizing. The referencing procedure determines which data is copied from the master contract into the lower level contracts.

A master contract contains header data only. In the master contract, you can record:

Business data

Partner data

Contract data

Billing plan data

On the overview screen of the master contract, there is a list of all the lower level contracts which refer to it. You can branch from this list into the individual contracts.

<a href="http://help.sap.com/saphelp_erp2005/helpdata/en/dd/55fd27545a11d1a7020000e829fd11/content.htm">Creating Master Contract</a>

<b>Material Determination for Cash Sales:</b>

Check if you have assigned Material Determination Procedure to Sales Document Type - Cash Sales (BV in standard system or CS). In IMG under

Sales and Distribution -> Basic Functions -> Material Determination -> Assign Procedures to Sales Document Types.

<a href="http://help.sap.com/saphelp_erp2005/helpdata/en/33/00f9c39d6911d194e200a0c9306794/content.htm"><b>Sales Order</b></a> - The sales order is a contractual agreement between a sales organization and a sold-to party about delivering products or providing a service for defined prices, quantities and times.

In sales order processing, the system implements various functions:

In the sales order, functions such as pricing and printouts are available. The system checks whether the material is available for the requested delivery date and if necessary, transfers the requirements to materials planning. Shipping deadlines and shipping points are determined in delivery scheduling.

Another part of this component are the special sales order types - rush orders and cash sales.

Cash Order - In cash sales the goods are paid for in cash.

Rush Order - In a rush order transaction, the customer picks up the goods or you deliver the goods on the same day as the order is placed. However, the invoice is created later.

<a href="http://help.sap.com/saphelp_erp2005/helpdata/en/33/4361299d7a11d194e200a0c9306794/content.htm"><b>Scheduling Agreement</b></a> - A customer scheduling agreement is an outline agreement with the customer containing delivery quantities and dates. These are then entered as schedule lines in a delivery schedule. You can either create schedule lines when you create the scheduling agreement or you can create them later.

You fulfill a scheduling agreement by creating the deliveries in the schedule as they become due. You process deliveries for a scheduling agreement in exactly the same way as you process a normal delivery. After you have carried out the delivery, the system updates the Delivered quantity field in the scheduling agreement item with the delivery quantity. The following graphic shows the document flow for scheduling agreements.

<a href="http://help.sap.com/saphelp_erp2005/helpdata/en/dd/55fc81545a11d1a7020000e829fd11/content.htm">Creating a Cash Sale</a>

Regards,

Naveen.

[Former Member]

On the overview screen of the master contract, there is a list of all the lower level contracts which refer to it. You can branch from this list into the individual contracts.

Hi,

I cannot see any contract list in that screen.Can you send me a screen shot..please my email is therudra@gmail.com

Everything else is excellent information

Venkat