Best practices for creating contracts manually | SAP MM

 Best practices for creating contracts manually

Creating a contract 

We can create a contract in one of the following ways 

Manually: we enter all contract data by our self. 

By reference: We can use one of the following documents as a reference (from which we take data from): 

• Purchase requisitions(PReq) 
• Request for quotation(RFQ) 

We can also combine the two options. For example, we can copy data from a reference document and then modify or add to this data as required.

Step 1 

Enter the transaction code ME31K in the quick launch SAP window then, click enter to start manual creation of a contract.

OR

On the SAP Easy Access screen below, select SAP Menu > Logistics > Materials management > Purchasing > Outline agreement > Contract > Create.

The initial screen appears.

Step 2

Enter the required data. If you specify data under the heading Default data for items default data, this data will appear by default in each item. The system defaults the current date for the Contract date field.

In the Agreement type field, we specify whether we are creating a quantity or value contract, for example. MK Quantity Contract

Step 3 

Press enter to create contract.

The header data screen appears.

Enter the contract validity period (End of validity). Check the other fields on this screen. Make any necessary changes (e.g. payment conditions, target value, ...) and then define the conditions at header level.

Click on Enter.

Step 4 

The item overview screen appears.

On this screen, we enter the information relating to each item ( material, target quantity, price, receiving plant) in the same way as for orders.

Material without a master record: leave the material number field blank and enter the description of the article or service in the Short text field.

Enter the material group to which the item belongs in the material group field.

Enter the account assignment type we can enter u (unknown)

Enter target quantity and Net Price.

If we want to specify an account assignment type other than U (Column A), we must enter the corresponding for the item. To do this, select the item and then

select Item > Account assignments

Step 5 

We can enter additional text for the item if it is necessary to give further instructions to the supplier or receiving point. To do this select Item > Texts > Text overview.

Click on Save to create contract.

Quantity contract created under the number 4600000138

Contract is created in the SAP system. In order to send the contract information to the supplier. The system creates a message for the contract. For information on how to send the message to the supplier, see Output messages.