Contents

Introduction ............................................................................................................................................ 2
Configuration Guide ................................................................................................................................ 2
1. Define Document types ................................................................................................................... 2
2. Define Screen layout at Document level........................................................................................... 5
Transactional Data................................................................................................................................... 7
1. Create the Contract ......................................................................................................................... 7
2. Create the Purchase order ............................................................................................................... 9

Introduction
By definition Contracts are long term agreements the business enters with the vendor for providing a
certain quantity of a product for period of time. In SAP, this can be represented by a Purchasing
Contract. Contracts can be created for the value or quantity.
These contract can be set up to reduce or to be utilized by purchase orders that are being placed with
reference to the contracts. Typically the businesses scenario for using Contracts would be when they
want to reserve capacity at the vendor or for booking greige in the manufacturing context.

Configuration Guide
The following configuration needs to be in place to for the Contract and call to work in SAP.

1. Define Document types

IMG Path:

There are 3 different standard document types to be used from, depending on the type of contract. You
can also define additional document types here. Make sure the number ranges are assigned to the
document types.

Select a document type and double click on Allowed Item categories to define the item
categories that can be used with the specific document type. Typically all item categories are
allowed, similar to the purchase order but can be customized depending on the business
scenario.

Select on a specific Item Category and double click on Link Purchase requisitions to define the Purchase
requisition types that can be used to be converted in to a Purchasing Contract.

2. Define Screen layout at Document level

You can make specific fields mandatory/optional/display here.
IMG Path:

Select the Field selection group MKK for Quantity Contract and WKK for Value Contracts and select the
group from below to make changes to specific fields.

Transactional Data
1. Create the Contract
Transaction: ME31K
In this step we will be creating the Contract to be sent to the vendor.
Enter the highlighted information and hit Enter.

The following Item categories will be used for Contract.

Blank when ordering with material code

M when ordering without a material code; only using Short text

Enter the number of units (in this case since we are entering a quantity contract) and save the Contract.

2. Create the Purchase order

Transaction: ME21N
When you create the purchase order need to create it with reference to the contract you want to draw
down from.

Next select the Contract to be referenced.

Enter the quantity on the purchase order and save.

Note that the Contract number is referenced on the purchased order as shown below.

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Author: Malith Tharaka Perera

E-Mail: malith_p@hotmail.com / tharakap@learnsaptips.com
Website: www.learnsaptips.com
View my profile in LinkedIn

Disclaimer
This article is done based on my research and readings, unless otherwise stated. The views expressed are
my own and not of anyone else.
Author accepts no liability for the content of the articles in this website or for the consequences of any
actions taken on the basis of the information provided. Using this information is at the users own
discretion and responsibility.

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