Manage Purchase Contracts (Version 2)
Application component: Fiori UI for Manage Purchase Contracts
App type: Transactional
Line of business: Sourcing and Procurement
Leading industry: Cross Industry
Solution capability: Purchase Contract Management (S/4 CLD)
Scope items: Consumable Purchasing|Purchase Contract|Procurement of Services
Description:  With this app, you can view, create, and manage purchase contracts. 
A worklist application to manage Purchase Contracts
Key features:  You can use this app to:   Search for purchase contracts based on different criteria, such as creation date, validity status, attention required, and so on.   Create purchase contract templates, which will further enable you to reuse data whenever you create new purchase contracts.   Create value contracts or quantity contracts. When creating a purchase contract, you can:  Provide header details, delivery details, payment terms, references, conditions, partner, notes, attachments, and so on.Note Please refrain from adapting custom fields in the section Header Information. The fields in this section are displayed in the header of the document and are predefined. Custom fields added to this section will not be visible in the display mode.   Add items in either the flat list or the hierarchy list.  A flat list is a linear view of items in a purchase contract. A flat list can only consist of functional items that need not be arranged in any structured order. It cannot contain groups of items; therefore item sets cannot be added to flat lists.   A hierarchy list is a hierarchical view of items in a purchase contract. A hierarchy list can contain item sets and functional items arranged in a structured order. For more information on creating items in the hierarchy list, see section Item Hierarchies in Purchase Contracts.   Furthermore, you can provide item details, such as quantity, price, conditions, supplier confirmation control details, GR/IR control details, account assignment, delivery address details, notes, attachments, and so on.     Provide the Incoterms Version. An incoterms version is an edition containing a list of international terms for transportation that is defined by the International Chamber of Commerce (ICC).   Assign an item category to an item in a purchase contract. You can create items for a purchase contract with the following item categories: Standard Consignment (K) Material Group (W) Subcontracting (L) Note   Consignment (K): In consignment processing, the vendor provides materials and stores them on your premises. The vendor remains the legal owner of the material until you withdraw materials from the consignment stores. Only then does the vendor require payment. The invoice is due at set periods of time, for example, monthly. In addition, you can also arrange with the vendor that you take over ownership of the remaining consignment material after a certain period    Material Group (W): This item category is recommended for materials belonging to the same material group, but with different prices. When you create an item for a purchasing document, you enter the short text (description) and material group; however, you cannot mention the price. The price and material number cannot be specified until a release order is created against the purchasing document.   Subcontracting (L): This item category is a form of procurement where the required product is manufactured by a supplier (in this case the subcontractor) to whom you provide certain components. You can provide these components either directly from one of your plants, or indirectly through one of your suppliers. Using the provided components, the subcontractor completes the manufacturing process and delivers the required product to the ordering party.  Note   When you choose item category Consignment, the fields Account Assignment and Net Price will not be applicable for purchase contract items, and hence are unavailable on the item page.   The item category Material Group is only applicable for value contracts.   The item category Subcontracting is only applicable for contract types MK and WK. It is also only applicable for the following account assignment categories:  Project (P)   Unknown (U)     You can link purchase requisition (PR) item category to follow-on contract item category, using the configuration step Define Document Types for Contracts. For example, if you link a PR item category Standard to a contract item category Material Group, then the follow-on contract items created from the PR with item category as Standard will only accept Material Group as the item category. If another value is selected, an error message is displayed after clicking on Create.     Maintain the field to update the info record at the item level of a purchase contract. The info record determines prices and conditions that the system automatically suggests when you are creating purchase contract items. An info record, and subsequently the prices and conditions it contains, can apply to an entire purchasing organization or to a single plant within a purchasing organization. For example, if you create a purchase contract for a plant for which an info record has been defined at plant level, the purchase contract is based on the conditions in the plant info record and not on the conditions that apply to the entire purchasing organization. The value you select for this field determines how the info record is updated with respect to plant-level info records. The following values are available:   No update: The info record is not updated.Note During the creation process, choose this option avoid the creation of an info record.   Update with or without plant: If an info record exists at plant level, it is updated. Otherwise an info record is updated at purchasing organization level.   Update with plant (if no plant ban): If plant conditions are allowed for the plant, an info record is updated at plant level.   Update without plant (if no plant requirement): If plant conditions are not necessary for the plant, an info record is updated at purchasing organization level.   Note The fields Info Record Number and Info Record Update are visible only for item categories Standard, Consignment, and Subcontracting.   Create purchase contract items for materials or services. You can enter the ID of a product master data in the Material field or you create a free-text item for the required materials or services by entering a short text.  The Product Type Group defines whether the product master data(*) or the free-text item is a service or a material.  (*The product type group is assigned to a product master data via the material type.)    Maintain the shipping instruction for each item. Note If material or plant are filled after maintaining the shipping instruction, the shipping instruction is overwritten by the respective master data as it takes precedence over manual entry.   Indicate if a purchase contract item is a catalog-relevant item. You can specify if a purchase contract has catalog-relevant items at the header and item levels. The header-level checkbox Catalog Relevant is only used to default items as catalog-relevant items during their creation. The item-level indicator Catalog-relevant Item is independent of the header-level checkbox.Note  The catalog-relevant indicator is only valid for material items with item category Standard. It is invalid for free-text items. This indicator is applicable only for functional items. It is unavailable for item sets.  To enable/disable catalog items for purchase contracts, you, as a configuration expert, need to use the search function to open the item Purchase Contract Processing (Sourcing and Procurement: Operational Procurement) in your configuration environment. Then, turn the switch on/off by configuring the activity Activate Catalog Items for Purchase Contracts. For more details, see Configuration Help.   Enable and select the Kanban process at the item level of purchase contracts under the section GR/IR Control. The following Kanban indicators are available:  Replenishment element for Kanban   Scheduling agreement for JIT calls   Scheduling agreement for summarized JIT calls   Note Kanban is a means of signaling the demand status for a certain material. The replenishment or production of a material is not triggered until a certain production level needs the material. The signal for replenishment is issued by an indicator, that is sent by a demand source (consumer) to the supply source (supplier).   Enable acceptance of purchase contract items at the point of origin. You can indicate if the acceptance of an ordered item is to take place at the point of origin (that is, on the supplier's premises) by selecting Origin Acceptance in the section GR/IR Control for the specific item. If you set the indicator, you must post the goods receipt to the valuated GR blocked stock using the movement type 107 as soon as the goods have been accepted at the supplier's facility. In a second step, you can post the goods from valuated GR blocked stock to unrestricted-use stock using movement type 109 as soon as the goods have been delivered by the supplier.Note   You cannot change this indicator in the item of the purchase contract after you have posted a follow-on document for the item.   If you provide the fields , , and , then based on the material master data,  is automatically selected. However, you can overwrite the default value and deselect it as per your requirement.     Manage tax code, tax date, and tax country/region. Tax date is the date on which the tax value should be taken into consideration for a document. This date may be relevant for a VAT change, for example. If you activate the tax date, it is prefilled with the delivery date for the item. If the delivery date is not available, the field is prefilled with the document date. The tax date field is available only if the Time-Dependent Taxes feature is enabled for the relevant country/region. Tax country/region is filled with a default value coming from the country/region of the company code of the receiving plant. In case this cannot be determined, the country/region of the company code in the document header is the default. In case the tax code is empty no default value is filled into the tax country/region field.    Assign one or more account assignments to a purchase contract item. If you use multiple account assignments, the distribution indicator enables you to define how the quantity and value of the purchase contract items are distributed to individual account assignment items.   Choose the supplier's sub-range from the value help under the section Delivery Terms for a purchase contract item. For more information, see Vendor Sub-Range in Purchasing.   Activate Public Sector Management (PSM) fields for account assignment. During the creation of a purchase contract, you can activate PSM related fields for single or multiple account assignments. Note As a prerequisite, the PSM related fields can be activated for a company code only when a Funds Management (FM) area is assigned to the company code. With the implementation of the Business Add-In (BAdI) Change of Field Controls within Account Assignment for Industries (MM_PUR_S4_ACC_FC_FIORI_INT), the following fields appear in the section Account Assignment depending on the account assignment category selected at the item level:   Fund   Grant   Budget Period   Functional Area   Cost Centre   WBS Element   Budget Account   Note PSM account assignments for stock materials in purchase contracts is not supported.   Copy items in a purchase contract.Note You can copy items that are blocked or deleted. However, the copies of these items will not be blocked or deleted.   Block and unblock purchase contract items. You can block and unblock purchase contract items during the creation or update of a purchase contract. Note   You cannot create purchase orders for items that are blocked. However, the blocked or deleted items are considered in the calculation of consumption percentage.   If you delete a blocked item, its blocked status changes to No, and deleted status changes to Yes. The action Delete takes precedence over the action Block.     Delete and restore purchase contract items. You can delete purchase contract items during the creation or update of a purchase contract. When you delete an item in a draft document, the item is deleted and removed from the document. However, when you delete an item in an active document, the item is logically deleted and marked with a deletion indicator. You can further restore items that are marked with a deletion indicator.  You cannot create purchase orders for items that are deleted.   If you delete a blocked item, its blocked status changes to No, and deleted status changes to Yes. The action Delete takes precedence over the action Block.     Add conditions with a condition type, for example, Cash Discount, to an existing date range or a new date range. Note  You can add conditions to a new date range only when editing a purchase contract. The Price Unit of an item cannot be modified after the creation of the purchase contract. If you change the existing conditions, to ensure the latest and accurate values are displayed in the purchase contract, schedule a job using the Determine and Update Price of Contract Item template in the Schedule Update of Price for Purchasing Documents app.  For more information, see sections Header Conditions and Price Simulation in Purchase Contracts and Item Conditions and Price Simulation in Purchase Contracts.   Create, edit, and display additional information in the Notes section at the header and item level of purchase contracts. Note You can adapt the text in the Notes section at the header and item levels from other objects, such as RFQs, other purchase contracts, etc., for header notes and material master records, info records, etc., for item notes. You can do this by configuring the activities Define Copying Rules for Header Texts in Contracts and Define Copying Rules for Item Texts in Contracts in your configuration environment. You can also edit the reference texts based on the configuration. For more information, see the Configuration Help for the respective activities.   View, assign, or unassign partners, for example, suppliers and their associated partner functions, such as ordering address and invoicing party, to a purchase contract on the partner tab at the header level of a purchase contract. If the Partner tab is activated and a supplier is maintained at the header of the purchase contract:   A partner with partner function (for example: BA = Ordering Address, LF = Supplier, RS = Invoicing Party), is entered automatically, if maintained in the supplier master data.   A default partner with partner function (for example: BA = Ordering Address, LF = Supplier, RS = Invoicing Party), is entered automatically, if more than one partner with the same partner function exists in the supplier master data and one partner is marked as the default partner.   If multiple partners exist for the same partner function and no default partner is maintained in the supplier master data, a partner for the specific partner function can be selected manually. (Business functions are, for example, BA = Ordering Address, LF = Supplier, RS = Invoicing Party)   Note Note the special handling for the partner function: Supplier  The partner function and the partner itself are set to READ-ONLY.   The update or deletion of the supplier is done via the field Supplier on header level of the purchase contract (the Delete button does not work for this partner function).    If you enter a second partner with the role Supplier, this partner function is deleted directly as it is not allowed to have multiple partners with the same partner function.      Add attachments to a purchase contract. For more information, see section Attachments in Purchase Contracts.   Display the product compliance status of an item and the product compliance status of the entire purchase contract. For more information, see Product Compliance in Purchase Contracts.   Search for legal transactions and assign them to a purchase contract. You can also display the legal transactions associated with a purchase contract. For more information on the legal transactions, see the documentation for Manage Legal Transactions.   Use the button Save in Preparation to save new purchase contracts without releasing them. Selecting Save in Preparation allows you to create and save a purchase contract without releasing it. For example, while creating a purchase contract, if you need to exit the creation process to double-check and clarify certain details, you can select Save in Preparation. You can further save your current progress even if there are errors due to incomplete entry fields. You only need to ensure that you specified a contract type.Note When you select this feature, the document will not be submitted for approval. Additionally, you cannot use these purchase contracts to create follow-on documents.The approval status is set to Not Yet Relevant and the purchasing document status is set to In Preparation. After the purchase contract has been saved with this status, you can revisit the purchase contract any number of times to makes changes. When you finally are ready to submit the purchase contract for approval, you need to click Save.This option is only available before a contract has been created.   Renew an existing purchase contract from the list. You can change or extend the validity period, target quantity, or target value of an existing purchase contract. Note that in this case, no follow-on document is created.   Copy an existing purchase contract from the list. When you copy a purchase contract, a new document is created, which opens in edit mode. You can update and save information in the new purchase contract based on your requirement. Note   Conditions are not copied to the new purchase contract.  Net Order Price and Validity To are not copied to the new purchase contract.     Withdraw a purchase contract sent for approval. Select the purchase contract and choose Withdraw from Approval. This cancels the approval process for the selected purchase contract. This also changes status of the purchase contract to In Preparation. You can then make the required changes to the purchase contract and submit it again for approval. Note You can only withdraw a purchase contract that is in the status In Approval.   Edit purchase contracts irrespective of the document status. However, you cannot edit purchase contracts in the SAP GUI for HTML app Change Purchase Contract. Purchase contracts can be edited only in the SAP Fiori app Manage Purchase Contracts.   Delete purchase contracts. You can delete draft purchase contracts that are not yet saved. However, you cannot delete purchase contracts in statuses, such as In Preparation, In Approval, Rejected, Released, and so on. Once a purchase contract is saved (or saved in preparation), you can only archive it to remove it from the database. For more information, see section Archiving Purchase Contracts.Note You can delete the changes to an edited purchase contract only if you do not save the changes. The purchase contract with the information before the recent modification would still be available in the database.   View all the approvers responsible for approving the workflow of a purchase contract in the list and object pages. This is possible only if the field Step to be completed by: is set to One of the recipients in the section Recipients in the app Manage Workflows for Purchase Contracts.    View the supplier evaluation score for the previous six months. By clicking the score, you can navigate to the analytics app Operational Supplier Evaluation to view the price/time variance, quality score, and so on.   View the Consumption Percentage of the purchase contract at the header level of the document. This percentage is calculated based on the type of contract selected. The consumption percentage is calculated using the following formula:  For quantity contracts: = [(Net Release Order Value of Item 1 + Net Release Order Value of Item 2 ) / (Target Value of Purchase Contract Item 1+ Target Value of Purchase Contract Item 2) ] * 100   For value contracts: = [(Net Release Order Value of Item 1 + Net Release Order Value of Item 2 ) / (Purchase Contract Header Target Value)] * 100     View the Consumption Percentage of the purchase contract at the item level of the document under the section Contract Consumption and Leakage. The consumption percentage is calculated using the following formula:  For quantity contracts: = [(Net Release Order Quantity of Item ) / (Target Quantity of Purchase Contract Item)] * 100   For value contracts: = [(Net Release Order Value of Item ) / (Purchase Contract Header Target Value)] * 100  Blocked or deleted items are also considered in the calculation of consumption percentage.   View the facet Attention Required, which indicates the approaching expiration date and/or the consumption of a purchase contract, and perform the necessary action. The following indicates the levels of attention required:  Very High (Color - Dark red): ((Consumption >= 80% AND Expiry Date = 100 OR Expiry Date    High (Color - Red): Consumption >= 80% OR Expiry Date    Medium (Color - Orange): Consumption >= 50% OR Expiry Date    Low (Color - Green): Rest     Create a purchase order from a purchase contract item. You can create purchase orders from items of an approved purchase contract. To create a purchase order for specific items of a purchase contract, open the purchase contract, select the relevant items and choose Create Purchase Order. You can create purchase orders from items added in the flat list and the hierarchy list.Note You cannot create purchase orders for items that are blocked or deleted. However, the blocked or deleted items are considered in the calculation of consumption percentage.   View, email, or print addresses in scripts that are specific to a language of a country with the help of International Address Versions. For more information, see chapter International Address Versions (Client-Specific).   View, assign, or unassign partners, for example, suppliers and their associated partner functions, such as ordering address and invoicing party, to a purchase contract.   View other potential sources of supply for the items in a purchase contract.   View release order documents for all items of a selected purchase contract.   View the total net amount of release order items in the purchase contract by calendar month.   Create purchase orders directly from purchase contracts. To create a purchase order for all items of a purchase contract, select a valid purchase contract and choose Create Purchase Order.    View the approval details, such as the processors involved and status, under the Approval Details section. These details are displayed based on the current configuration in the flexible workflow. For more information on the flexible workflow, see Manage Workflows for Purchase Contracts. Note During the creation/edit of a purchase contract, you can view the simulated approval details in the Approval Details section based on the workflow configuration and the entries in the document.   Cater to inquiries from workflow approvers.  The inquiry process enables you to modify purchase contracts sent back for rework. You can also respond to comments from approvers. You can view the Rework Required indicator for purchase contracts (on the list page) that have been sent back by the approver for rework. When choosing these purchase contracts, you can view the Rework section that contains the Comments from Approver. You can read the comments and make the required changes in the purchase contract. You can then enter your Comments to Approver and resubmit.Note You will also receive a notification that a purchase contract has been sent back to you for rework. On choosing this, you will be taken to the My Inbox app where you can view the details and take the required action. Please note that you can use the My Inbox app only if you have the required roles and authorizations.   Note  You can modify the properties of different fields that appear on the user interface of purchase contracts. You can make the fields hidden, read-only, mandatory, or optional as per your requirement. To modify the properties, create an implementation for the BAdI Change of Field Control for Purchase Contract Header and Item in the Custom Logic app.  
Business roles: Purchaser
Production Planner : 
Plans, monitors and adjusts material supplies produced internally and ensures material availability for sales order fulfillment and production supply. Collaborates internally with customer care and other production planners.

Cash Manager : 
Is responsible for overall liquidity status of group corporate, executes cash transactions and centrally manages bank accounts with rich attributes, including overdraft limit and signatories, approves for opening or closing bank accounts, etc.

Production Supervisor - Discrete Manufacturing : 
Ensures, together with his team, a smooth production process. Ensures that the manufacturing plan created by the production planner is executed under consideration of shop floor related issues like personnel shortage, machine breakdowns, etc.

Purchaser : 
Ensures that demands of materials and services are fulfilled by creating and monitoring purchase orders.

Cash Management Specialist : 
Executes cash transactions and centrally manages bank accounts with a wide range of attributes, including overdraft limit and signatories, utilizing approval process for opening or closing bank accounts, and the regular inventory/auditing process.

Material Planner - External Procurement: (is an add-on role to the Material Planner)
Ensures the availability of materials for production supply plans and monitors and adjusts material supplies procured externally. Collaborates internally with production planners and externally with suppliers.

Inventory Manager : 
Manages inventory with respect to quantity and value.

Accounts Payable Accountant : 
Carries out the most important functions in accounts payable accounting with a special focus on creation and execution.

Production Supervisor - Process Manufacturing : 
Ensures a smooth production process. Ensures that the manufacturing plan created by the production planner is executed under consideration of shop floor related issues like personnel shortage, machine breakdowns, etc.

Shipping Specialist - Just-In-Time Supply : 
Processes outbound deliveries for Just-In-Time calls.

Shipping Specialist : 
Processes outbound deliveries.

Purchasing Manager : 
Manages the procurement area. Acts as an approver and has a special KPI view.

Receiving Specialist : 
Processes inbound deliveries.