Evaluating purchase contracts

If a purchase contract is used for a purchase order or a purchase schedule, you can evaluate the purchase contract during and after the purchase order or schedule procedure. During the contract's effectivity period, you can check if the deliveries take place as agreed in the contract. At the end of the contract's effectivity period, you can check if the agreed quantities were met.

To evaluate contracts in the Evaluate Purchase Contracts (tdpur3420m000) session, the following conditions must be fulfilled:

  • The contract status must be Active
  • Call orders must exist for the contract
  • The time elapsed (%) must be more than the specified percentage

Another session that you can use to view the progress of a contract is the Purchase Contract Results (tdpur3513m000) session.

Note

The Evaluate Purchase Contracts (tdpur3420m000) session is mandatory if the Evaluate Contract before Deleting check box is selected in the Purchase Contract Parameters (tdpur0100m300) session.

How a contract line is evaluated depends on the value of the Binding check box in the Purchase Contract Lines (tdpur3101m000) session. This check box determines whether the Agreed Quantity that you agreed with your purchase business partner is a mandatory quantity to purchase.

If the Binding check box is selected in the Purchase Contract Lines (tdpur3101m000) session, the Evaluate Purchase Contracts (tdpur3420m000) session prints the differences between:

  • The Called Quantity and the Maximum Quantity fields in the Purchase Contract Lines (tdpur3101m000) session.
  • The Called Quantity and the Minimum Quantity fields in the Purchase Contract Lines (tdpur3101m000) session.

If the Binding check box is cleared in the Purchase Contract Lines (tdpur3101m000) session, the Evaluate Purchase Contracts (tdpur3420m000) session prints the lines that exceed the boundaries that you defined in the Evaluate Purchase Contracts (tdpur3420m000) session.

You can accept small negative or positive deviations in the call order with regard to the quantities. The deviations are calculated as follows in the Evaluate Purchase Contracts (tdpur3420m000) session:

(Called Quantity + Invoiced Quantity - (Agreed Quantity * Elapsed Time Factor)) ÷ Agreed Quantity * 100%
Example
  • Agreed Quantity = 100
  • Called + invoiced = 40
  • Contract duration = 10 days
  • Time Elapsed = 6 days
                     
Negative Deviation = 40 - 100 * 6/10 ÷ 100 = -20%

If this percentage is greater than the allowed percentage, the contract line is printed.

Note
  • The Called Quantity is increased when an order/schedule is linked to a contract. The Called Quantity is decreased again when an order/schedule line is processed in the Process Purchase Orders (tdpur4223m000)/ Process Purchase Schedules (tdpur3223m000) session.
  • The invoiced quantity is increased when linked purchase order/schedule lines are processed in the Process Purchase Orders (tdpur4223m000)/ Process Purchase Schedules (tdpur3223m000) session.
  • After a purchase contract is evaluated, LN updates the Evaluation field in the Purchase Contract Lines (tdpur3101m000) session.
  • Extrapolating can produce a distorted picture if, for instance, the largest quantities are delivered at the end of the contract period. As a result, an interim evaluation will show a backlog that does not correspond with reality.

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