Topic overview

This article describes the role supplier contract types play in the processing of supplier contracts. You will receive information about the default values and settings for supplier contracts stored in the supplier contract types as well as their effects on the processing and further processing of supplier contracts.

Definitions of terms

Supplier contracts

A supplier contract is a general contractual agreement on supplies of goods or services between a customer and a supplier. A supplier contract is always identified by a contract category, such as Fixed quantity or Fixed date. It therefore specifies when or with which event a contract is completed. A contract release can only take place by using a purchase order.

Contract

A contract is a special order or agreement whereby a customer agrees with a supplier to receive goods of a certain quantity or value in a certain period of time for a specific price. The supplier is in return obliged to deliver the items in the contracted quantities or value in the agreed time period.

Contract release (order)

The assignment of contract line items to order line items in the sales or purchase order is also known as contract release. This contract release status of the contract line items results from this assignment, according to the contract category concerned.

Contract types

Contract types are used to identify customer or supplier contracts and to define the contract category, such as Fixed quantity, Fixed value, or Fixed date. Contract types also contain default values for contracts based on them.

Contract category

A contract is always characterized by a contract category, such as Fixed quantity or Fixed date, for example. The contract category establishes which data is displayed and entered in a customer or supplier contract and at what point in time or with what result a contract is completed. The contract release status as well as the general status Completed of a contract line item depend on the contract category. The contract category of a contract is set by assigning the contract type.

Contract category Consignment

The contract category Consignment is meant for consignment agreements with suppliers. Consignment contracts are date-based contracts with start and end date. For the respective period, prices are set for certain items and sites. Until the goods are used, for example in sales or in production, they remain the property of the supplier.

Quantity/date

The Quantity/date contract category is for quantity- and date-based contracts where both a fixed upper limit for the total quantity of the item that can be called off and an end date by which the items can be called off are established. When the agreed quantity or agreed date are reached, no further items can be called off against this contract. It does not matter which occurs first—only one of the two conditions has to apply.

Application description

Supplier contract types are used to identify supplier contracts and to define their categories. A distinction can be made between the following categories in each supplier contract type:

• Fixed quantity
• Fixed date
• Fixed value
• Consignment
• Quantity/date
• Value/date

Supplier contract types also contain further settings for the supplier contracts of a given type. The Supplier contract types application is not divided into identification and work panes. It contains input fields.

Input fields

You can use the input fields of a supplier contract type to enter or select data that is to apply to all supplier contracts of a given type. The defined data is automatically assigned to all new supplier contracts of this type and cannot be changed.

The fields in detail:

• Type – the unique identification of the supplier contract type is entered in the Type field. It is freely selectable. For systems with several organizations in particular, it is advisable to enter a number range in the Supplier contract type number range field in the Purchasing function, Number ranges sub-function in the Customizing application. If a number range is stored for the purchasing organization selected in the title bar, the next number resulting from this is proposed as identification when a new type is entered.
  The identification of the type is used to find the correct supplier contract type in further applications and queries, e.g. to assign the correct type to a supplier contract and thereby adopt certain settings.
• Description – the description serves as an additional identification feature. It can consist of a freely selectable text. Enter a meaningful and, if possible, unambiguous designation to make it easier to search for.

• Number range – a number range selected in the supplier contract type is used to automatically generate numbers for new supplier contracts according to a specific pattern.
  Further information can be found in the article Number ranges.
• Creation status – the creation status defines the general status for new supplier contracts of a given type. You can choose between the following options:
  • Released
  • In process

See also the article Actions: Release, block and complete voucher or line items.

• Category – select a contract category, which is then assigned to all contracts that use a given contract type. The following contract categories can be used:
  • Fixed quantity
  • Fixed value
  • Fixed date
  • Consignment
  • Quantity/date
  • Value/date

The category can no longer be changed if the contract type is already used in a supplier contract.

• Origin of binding unit – this field is used to define where the setting for the binding unit is taken from. The selected entry is a default value for supplier contracts of a given type. You can choose one of the following options:
  • Item – with this entry, you can adopt the setting for the binding unit from the item master data
  • Manual – use this entry to define an individual setting for the binding unit

This field is displayed if the Manage inventory in logistic units function is activated for the client in the Customizing application. This function can be found in the Inventory Management function, sub-function Warehouse inventory.

Supplier contract categories

• Fixed quantity
• Fixed value
• Fixed date
• Consignment
• Quantity/date
• Value/date

Contract categories determine which data is displayed and recorded in the supplier contract. The contract status and the general status Completed of a contract line item also depend on the contract category, which is determined by the selected contract type. The contract status results from the assignment of contract line items to order line items in the purchase order. This is also referred to as a contract release order.

The contract categories and the derived contract status of the contract line items in detail:

• Fixed quantity – the contract category Fixed quantity is used for quantity-dependent contracts in which an upper limit (plus/minus over- or underdelivery, if applicable) is specified for the total quantity of the item that can be called off.
  A contract line item of the Fixed quantity category is then called off in full if the agreed total quantity of the contract line item is reached through contract call-offs in purchase orders. Over- or underdelivery percentages are taken into account: The contract line item is therefore also called off in full if “too much” has been delivered within the overdelivery percentage or if an open call-off quantity remains that is below the specified underdelivery percentage. The date or the values are irrelevant for this contract category. If a line item is called off in full, it automatically receives the status Completed.
  The entire contract is then called-off in full and thus completed if all contract line items have the status Called-off in full.
• Fixed value – the contract category Fixed value is for value-dependent contracts in which an upper limit (plus/minus over- or under-performance, if applicable) is defined for the total amount of the item that can be called off.
  A contract line item of the Fixed value category is then called off in full if the agreed total amount of the contract item is reached through contract call-offs in purchase orders. The system uses the order line item values calculated in the order to determine the call-off status. Overdelivery and underdelivery percentages are taken into account: The contract line item is therefore also called off in full if “too much” has been delivered within the overdelivery percentage or if an open call-off value remains that is below the specified underdelivery percentage. The date or quantity is irrelevant for this contract category. If a line item is called off in full, it automatically receives the status Completed.
  The entire contract is then called off in full and thus completed if all contract line items have the status Called-off in full.
• Fixed date – the contract category Fixed date is for date-dependent contracts for which an end date is specified by which the items relating to this contract can be called off. On the agreed end date, the entire contract and all contract line items are deemed to be called off in full. Items can therefore be called off from this contract up to exactly this end date, after which they can no longer be called off. This is independent of whether the quantity or value is reached or exceeded within the scope of admissibility. Forward contracts must be settled manually via the corresponding action.
  Forward contracts are valid up to and including the date entered.
• Consignment – the Consignment contract category exists for consignment agreements with suppliers. Consignment contracts are forward contracts with a start and end date. The prices for certain items and locations are fixed for this period. The goods belong to the supplier until they are used, e.g. in sales or production.
  On the agreed end date, the contract is deemed to be called off in full. There are no restrictions with regard to the quantity or value called off. Consignment contracts are forward contracts and must therefore be settled manually via the corresponding action.
  Consignment contracts are valid including the recorded start and end dates. As a consignment purchase order always requires a consignment contract, consignment contracts are also valid until the start of the next contract. Therefore, if there is no valid contract at the time an item is withdrawn, the last valid contract will be used.

A specific contract can refer to several locations or to several companies at one or more locations.

• Quantity/date – the Quantity/date contract category is for quantity- and date-dependent contracts in which both a fixed upper limit for the total quantity of the item that can be called off and a final date by which the items can be called off are defined.
  A contract line item of the contract category Quantity/date is then completed when the agreed quantity is reached and the line item is therefore assigned the status Called-off in full. Over- or under-delivery percentages are taken into account. The entire contract is then called-off in full or completed when all contract line items have the status Called-off in full and Completed.
  When the agreed deadline is reached, no more items can be called off from this contract. The quantity/date contract must then be completed manually using the corresponding action.
  It does not matter which condition occurs first, only one of the two conditions must be met. The value is irrelevant.
• Value/date – the Value/date contract category is for value and date-dependent contracts in which both a fixed upper limit for the total value of the item that can be called of and a fixed end date are specified.
  A contract line item of the contract category Value/date is then completed when the agreed value is reached and the line item thus receives the status Called-off in full. Over- or underdelivery percentages are taken into account. The entire contract is then called-off in full or completed when all contract line items have the status Called-off in full and Completed.
  When the agreed date is reached, no more items can be called off from this contract. The value/date contract must then be completed manually using the corresponding action.
  It does not matter which condition occurs first, only one of the two conditions must be met. The quantity is irrelevant.

Customizing

You can store a number range in the Supplier contract type number range field in the Customizing application, Purchasing function, Number ranges sub-function. If a number range is stored for the selected purchasing organization, the next number resulting from this is proposed when a type is entered.

The Consignment category is only available if the Multiple inventory owners function is activated for the client under the Inventory Management function.

Business entities

The following business entity is relevant for the Supplier contract types application, which you use, for example, to

• Assign authorizations

• Set up activity definitions, or

• Import or export data

Supplier contract type: com.cisag.app.purchasing.obj.PurchaseContractType

The business entity belongs to the following business entity group:

Purchasing voucher data: com.cisag.app.purchasing.OrderData

Authorizations

Authorizations can be assigned both using the authorization roles and by assigning an organization. The authorization concept can be found in the technical article Authorizations.

Special capabilities

There are no special capabilities for the Supplier contract types application.

Organizational assignments

If the Content-based authorizations function is activated in the Customizing application, the Supplier contract types application is only displayed to a person if they have been assigned an organization in the partner master data that is integrated into at least one of the following organizational structures:

• Purchasing

The Supplier contract types application includes the Authorizations table. For a person to be able to use a supplier quotation type, they must be assigned to at least one organization in the partner master data that has been entered in the Authorizations table for the respective supplier quotation type.

Further information on the Authorizations table and a comprehensive overview of content-based authorizations can be found in the Content-based authorizations article.