How to Create Open Contract in Sap Sd

Creating an open contract in SAP SD can be a useful tool for businesses to manage their procurement needs efficiently. An open contract allows for repeated or scheduled delivery of goods over a set period, eliminating the need for repeated transactional processes. In this article, we will take a closer look at how to create an open contract in SAP SD.

Step 1: Create a contract with a vendor

To initiate an open contract, a purchasing document must be created. In this case, a contract with the vendor needs to be created. This can be done by following the below steps:

1. From the SAP Easy Access menu, navigate to the Purchase Order section.

2. Select the Create Purchasing Document button.

3. Select the Contract option in the dropdown menu.

4. Enter the vendor code, contract validity dates, and other relevant information.

Step 2: Assign the Material Master to the Contract

Once the vendor contract is created, the next step is to assign the Material Master to the contract. The Material Master contains all the relevant information about the goods that the business intends to procure, including the price, quantity, and delivery schedule. The following steps can be followed to assign the Material Master.

1. Navigate to the relevant Material Master.

2. Select the Procurement tab.

3. Choose the Contract option from the Procurement Type dropdown menu.

4. Enter the Contract Number in the Contract field.

5. Enter the validity dates of the contract in the Validity Period section.

6. Enter the Purchase Quantity and Net Price in the Relevant Fields.

Step 3: Create the Schedule Line

After assigning the Material Master to the contract, the next step is to create a schedule line. A schedule line defines the delivery schedule for the goods. It includes information such as delivery date, quantity, and other relevant information. The following steps can be followed to create a schedule line.

1. From the Purchase Order screen, select the Schedule Lines option.

2. Enter the desired delivery date and the quantity required in the relevant fields.

3. Save the schedule line by clicking the Save button.

Step 4: Release the Contract

Once the schedule line is created, the contract needs to be released to the vendor. This informs the vendor to start delivering the goods as per the schedule line. The following steps can be followed to release the contract.

1. From the Purchase Order screen, select the Release button.

2. Select the desired Release Strategy for the contract.

3. Click the Save button to complete the process.

In conclusion, creating an open contract in SAP SD can help businesses optimize their procurement processes while improving their efficiency and accuracy. By following the steps mentioned in this article, you can create an open contract and manage your procurement needs effectively.