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Commitment flow from PR to Contract

Hi Gurus,

We require WBS budget commitment in service contract level. WBS budget is committing correctly in Service PR. While we are creating service PO from service PR, it is getting populated correctly. But while we are trying to create Service contract, commitment budget is not flowing from PR. In this case if we create Service PO from Contract, double budget is getting consumed as well as commitment of PR is not getting reduced.

Thanks & Regards,

Biswajit Dey

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3 Answers

  • Best Answer
    Dec 08, 2017 at 05:14 AM

    Dear All,

    We have came to a conclusion. Since there is no issue of budget commitment with PR & PO, we're omitting contract in this procurement process.We will create service PR & service release order(SRO) with reference to that service PR. Validity start & end date will also can be incorporated in that SRO. That'll be the only legal document with the vendor (not considering the RFQ). As per requirement, service entry sheet will be created from that SRO (time to time). Here we will not get the benefit of value restriction as contract header value.

    Thanks & Regards,

    Biswajit Dey

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    Former Member
    Nov 22, 2017 at 11:15 AM

    Why cannot follow sequense of Contract- > PR -> PO

    1. Create service contract

    2. Create service PR from service contract

    3. Create service PO from service PR

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    • Hi Jurgen,

      I do agree with your comment. Buyer can assign more quantity than PR while creating a contract. But our system is already incorporated with a check that we can't increase quantity in Contract or PO (if created from PR). Also we always create value contract. So even after we change the qty (by changing config), we can still create PO until the contract header value get exhausted.

      We just need to track the budget consumption from PR to PO level. Let us assume 1000$ has been consumed in PR. Vendor negotiation price is 1200$. So if we enable budget consumption in contract also, we can easily find how much budget is actually going to be consumed for a particular procurement.

      Thanks & Regards,

      Biswajit Dey

  • Nov 28, 2017 at 04:50 AM
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    • Hi KK,

      This resolution was already tried. But commitment plan in contract is not working if there is account assignment exists in purchase requisition. In case of service requisition, account assignment is mandatory in PR level (with item category 'D'). So we can't go for commitment plan since it is not acceptable for contract creation from service requisition.

      Thanks & Regards,

      Biswajit Dey