diff distribute contract and centrally conract

[Former Member]

hi gurus

wht is different between distribute contract and centrally contract plz tell me detail.

[Former Member · Accepted solution]

Hi Gaurav,

Distributed Contracts

Use: - In one particular SAP system you can create contracts that are to be made available to other independent SAP systems (that is, you can "distribute" contracts to these systems).

The central system (in which the contract is created) and the local systems (in which procurement is also carried out using this contract) are all separate, independent SAP systems.

Prerequisites: - Distributed contracts are distinguished from normal contracts by the agreement type. In order to be able to distribute contracts, you must set up identical purchasing organizations and purchasing groups in the central and local systems.

Centrally Agreed Contract

Use: - It is possible to create contracts that do not relate to just one particular receiving plant. In this case, a centrally agreed contract is created without specification of a plant. The plant is not specified until a contract release order is created.

You can maintain different conditions for individual plants in the central contract or different ordering addresses or goods suppliers in the vendor master record, for example.

An enterprise with a central purchasing department (= Reference Purchasing Organization) buying materials for several plants can agree a high-level contract which may apply to a vendor's entire corporate group and which can be utilized by other purchasing organizations within the enterprise. The use of such centrally agreed contracts usually results in more favorable conditions of purchase. (Outside SAP, such contracts may also be referred to as "national", "group", or "corporate" contracts.)

A centrally agreed contract is involved if:

A single purchasing organization procures for an entire corporate group, or

A reference purchasing organization makes a contract available to other associated purchasing organizations, enabling the latter to issue release orders against this contract

Features: -

Plant Conditions: -

The centrally agreed contract allows prices and conditions to be determined individually for each receiving plant via the Plant conditions function. One advantage of this is that differences in transport costs due to varying distances between vendor and receiving plant locations can be taken into account.

When you create contract release orders for plants without plant conditions, the conditions of the contract item are used.

If certain plants are not to issue release oders against the contract, you should block the central contract from use as a source of supply by these plants in the source list.

Partner Roles: -

Vendors may assume different roles (partner roles) in the procurement process. Partner roles (sometimes also referred to as "partner functions") include the roles of "ordering address", "goods supplier", and "invoicing party".

The partners you can store in the vendor master record in the Partner Roles view apply to a certain purchasing organization.

In addition to the partners that are valid at purchasing organization level, you can maintain different partners for individual plants or vendor sub-ranges. In this case, the system will determine a different ordering address in a purchase order for your Atlanta plant than the one determined in a purchase order for your Minneapolis plant, for example.

Activities

Maintaining Plant Conditions

When maintaining the centrally agreed contract, choose Edit ® Plant conditions ® Overview.

On the overview screen that then appears, enter the desired plant and choose Plant prices.

An item overview screen appears, starting from which you can maintain conditions.

Choose Item ® Conditions to access the condition maintenance screen.

Return to the overview and repeat the process for all plants for which you wish to store plant-specific conditions.

Save your input.

Maintaining Partners

You can maintain the different partners either in the vendor master record or individually in the contract. If the partners have been maintained in the vendor master, they are suggested in the contract.

Maintaining partners in a contract

In the contract, choose Header ® Partners.

The Data Retention Level: Partners screen appears. Enter the plant and/or vendor sub-range, and choose ENTER. The Maintain Partners screen appears.

To see which partners have already been maintained, select the desired item and choose Level.

Enter the desired partner and return to the item overview for the contract.

Save your input.

Maintaining partners in the vendor master

Choose Extras ® Different data on the Partner Roles (partner functions) screen in the vendor master record.

On the Create Different Data screen, enter the plant or vendor sub-range and select Partner Roles.

Click . The Change Vendor: Partner Roles screen appears.

Enter the desired partners and click to save your input.

Read the following links for more:

http://help.sap.com/erp2005_ehp_03/helpdata/EN/75/ee0ef255c811d189900000e8322d00/frameset.htm

http://help.sap.com/erp2005_ehp_03/helpdata/EN/75/ee0ef255c811d189900000e8322d00/frameset.htm

Regards,

Nani.

[MadhuKolla]

Hi,

It is possible to create contracts that do not relate to just one particular receiving plant. In this case, a centrally agreed contract is created without specification of a plant. The plant is not specified until a contract release order is created.

A centrally agreed contract is involved if:

• A single purchasing organization procures for an entire corporate group

or

• A reference purchasing organization makes a contract available to other associated purchasing organizations, enabling the latter to issue release orders against this contract.

Regards,

Pravin

[Former Member]

Hi,

Centrally agreed contract will be contract agreed at company code level for all plants under that Co code.

Distribute the qty or value among the plants.

regards

Suresh

[Former Member]

Hi

Centrally agreed contract

A contract negotiated by a purchasing organization for an entire corporate group (represented by a "client" in the SAP system).

Such corporate contracts enable more favorable conditions to be obtained (through bulk buying) than if individual organizational units within the group enter separate contracts.

A centrally agreed contract is involved if:

One single purchasing organization procures for an entire corporate group.

A reference purchasing organization makes a contract available to other purchasing organizations linked to it, so that the latter can issue release orders against that contract.

Distribution of contracts

Distributing contracts enables you to take advantage of the favorable conditions of a Centrally Agreed Contract negotiated by the central purchasing department as the Reference Purchasing Organization.

As a result, local purchasing organizations can order materials and services on better terms than would otherwise be the case.

The local purchasing organization issues release orders for materials or services against the centrally agreed contract and sends these orders direct to the vendors. At the same time, the local purchasing organization documents its own release orders and sends certain data from them back to the central purchasing organization.

All central and local release orders are documented in the central purchasing organization.