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How to Create SAP SD Contract - Free SAP SD Training
How to Create SAP SD Contract - Free SAP SD Training
Outline agreements play an important role in nearly all business processes. Customers and
vendors agree on the goods to be provided under certain conditions and within a specific
period of time. Outline agreements streamline business processes for both partners in a
business relationship. The two main outline agreements are:
scheduling agreements
contracts
There are two types of contracts – value and quantity. Contracts can cover both goods
and services. Generally, no restrictions apply to the different contract forms.
A contract is an outline agreement between you and your customer that is valid for a
certain time period. The contract does not contain any schedule lines, delivery quantities,
or delivery dates. The same functions are available in contracts as in orders. You can also
agree on special price agreements. The customer fulfills the contract with individual
releases. Schedule lines are created in the release order when it is placed. The release
order is then processed like any standard order. Any special agreements regarding prices
are copied from the contract.
Release orders are created with reference to a contract. This generates a document flow
record that allows you to update released quantities and values in the contract.
Once you have entered the contract creation initial screen, you have to select relevant
contract type. Each contract type has its own functionality and viewing based on the
configuration done at backend.
mandatory and it has to be populated else system would not allow you to proceed further.
In order to opt for a required contract type, either press F4 on the respective field and it will
show all LoVs (List of Values).
List with Contract Types
Hint: if you populate your relevant Sales Organization, Distribution Channel and Division
first and then opt for the relevant contract type, only contract types relevant for the selected
Sales Organization, Distribution Channel and Division will be displayed in LoVs.
The following master data is involved when creating a contract. This master data fetches
relevant information and populates the relevant fields accordingly.
C U S T O M E R M A S T E R DATA
M AT E R I A L M A S T E R DATA
Material description
Unit of measure (Stock Keeping Unit – SKU)
Transportation group
Loading group (fork lifter, manual handling etc.)
Taxation information
C U S T O M E R M AT E R I A L I N F O R E C O R D S
Used to maintain customer relevant SKU codes which are mapped with the company
code
OUTPUT MASTER
The process of communication with customer once the contract is created via printout of
the quotation which is sent to customer by post, fax or email.
This is the initial screen of contract once you have selected the relevant contract type and
sales area (the combination of Sales Organization, Distribution Channel and Division is
technically termed as Sales Area in SAP SD).
You can see Sold-To Party and Ship-To Party fields at the top left of the screen just below
the contract field. One Sold-To Party can have multiple Ship-To Parties. If there are many
Ship-To parties associated with one Sold-To Party, a dialog box will pop up in the contract
screen. You select the relevant Ship-To Party which the Sold-To Party has instructed you to
ship the products at.
Press F4 or button on the Sold-To Party field to search for your relevant Sold-To Party.
You can search by Search term maintained in the customer master or also by Name. To
remain specific with your search, enter relevant Sales Organization so that only customer
maintained in your Sales Organization will be displayed.
If you decide to find the customer with name, enter customer’s first name with * before and
after the name. This is called a wild-card search.
Example: *demo*.
Hint: You can use asterisk to be more specific in your search and press Enter to get output
of your search.
Search Results
Double click on the required Customer line in the contract to select that customer.
Press Enter once you have selected the Sold-To Party, so that the SAP system can accept
the customer and proceed with the contract creation.
Since this customer has two Ship-To Parties, a dialog box is popped up to select the
relevant one which your customer, Sold-To, has instructed. Double click on the required
one and same will be selected.
Sold-To and Ship-To Partied were Successfully Populated
If there’s only one Ship-To Party, once you press Enter, Ship-To Party will automatically get
populated. Since the contract is a legal document, system will prompt to populate validity
dates:
Validity of Contract
Populate contract validity dates, i.e. Valid From and Valid To dates:
Select Validity Dates using Calendar
Use F4 to search for the material the same way we did for customer and repeat the same
process for entering multiple line items (if required).
If you press Enter without entering the Quantity, the system will prompt:
SAP Asks to Enter Quantity of Material (at the bottom of the screen)
Enter Quantity.
Go to Edit > Incompletion Log or Ctrl+F8 to see if the contract Created is Complete.
Check Incompletion Log of Contract
If there is anything or fields which needs to be populated, the system will prompt and new
window will be displayed.
Enter the PO Number. PO stands for Purchase Order and it is a number of customer’s
purchase order.
Enter PO Number in Contract
Press or F5 to populate the next data, if any. Once all the required data is populated,
the system shall take you to the main screen of the contract.
SAP SD Contract is Complete
If the document is complete, the system will prompt the relevant message accordingly.
.
Header of Contract
If you want to see the pricing of the individual material, select that line item and press this
conditions button .
Once you have created the contract and satisfied with the information populated, press
or CTRL+S to save the contract.
SAP SD Contract was Successfully Saved
Did you like this tutorial? Have any questions or comments? We would love to hear your
feedback in the comments section below. It’d be a big help for us, and hopefully it’s
something we can address for you in improvement of our free SAP SD tutorials.
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August 16, 2017 at 7:40 am