Cannot create contract with service hierarchy

Dear SAP gurus,

We are in SRM 7.01 with backend ECC 6.05. We are using classic scenario and central contract management.

We would like to activate the contract with service hierarchies in SRM. We have done the following:

1. Activate business function SRM_SERVICE_PROC_1

2. Activate service procurement switch SRM_701_SERV_PROC_GE

3. Activate Central Contract Management switch SRM_701_SERV_PROC_CCM

4. Assign transaction type contract with Show Indent = "X" and "HIER_SE"

5. Assign authorization "SAP_EC_BBP_ST_PURCHASER" to the purchaser

After that using user id purchaser in step 5, I try to create contract in SRM. I see that I can add line "Outline", but then after the line is added:

- I cannot add information on the outline level (the description and product category is greyed out), When I click detail it also greyed out

- I also cannot add subline to the outline level

Do I miss something in here?

Btw, if I use central contract with hierarchies, can I use it for local sourcing in SC in SRM (we are in classic scenario).

Best regards,

John