SAP Contracts

[Former Member]

Hi there,

can someone advice me on knowing how SAP contracts work?

Like how the sales order gets created? and were does the document flow stop, do we Post Goods Issue? like in a normal sales order>delivery>shipment>invoicve> process you tend to see this.

But for Contracts, how does it work.

thanks

[former_member550050 · Accepted solution]

Hi saping SAP

Not only in SAP, the contract as a business process is a long term agreement between a company and customer for supplying certain products or products for a value for a period of time say for a year

Say order for material X for 10000 units (qty contract) or for 1 lakh (value contract) for 1 year

This means the customer requires this qty in 1 year and he takes as on when reqd

That means customer sends release order (nothing but similar to standard order) with reference to contract

May be 10 release orders or 4 release orders

Release order--delivery-PGI---billing

The billing may be different depending on th contract profile

Inimg-sd-sales-sales documents-sales document header-here you can see the entire configuration of contracts

http://help.sap.com/saphelp_47x200/helpdata/en/dd/55fd60545a11d1a7020000e829fd11/frameset.htm

This link will further will help you in understanding the same

In the release order document flow, you can see the entire set of flow starting from the contract no, provided copy controls are configured perfectly

Regards

Raja

[former_member184555]

Hi

The sales cycle of OTC (Order To Cash) will be the same. Like creating sales order with reference to a quotation, the slaes orders are created with reference to a Contract and in this case the sales orders are technically called as Release Orders.

Thanks,

Ravi