Evaluating sales contracts

If a sales contract is used for a sales order or sales schedule, you can evaluate the sales contract during and after the sales 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.

Note

The Evaluate Sales Contracts (tdsls3420m000) session is mandatory if the Evaluate Contract before Deleting check box is selected in the Sales Contract Parameters (tdsls0100s300) session.

To evaluate contracts in the Evaluate Sales Contracts (tdsls3420m000) session:

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

How a contract line is evaluated depends on the value of the Quantity Binding check box in the Sales Contract Lines (tdsls3501m000) session. This check box determines whether the Agreed Quantity that you agreed with your sold-to business partner is a mandatory quantity to sell.

If the Quantity Binding check box is selected in the Sales Contract Lines (tdsls3501m000) session, the Evaluate Sales Contracts (tdsls3420m000) session prints the differences between:

  • The Called Quantity and the Maximum Quantity fields in the Sales Contract Lines (tdsls3501m000) session.
  • The Called Quantity and the Minimum Quantity fields in the Sales Contract Lines (tdsls3501m000) session.

If the Quantity Binding check box is cleared in the Sales Contract Lines (tdsls3501m000) session, the Evaluate Sales Contracts (tdsls3420m000) session prints the lines that exceed the boundaries that you specified in the Evaluate Sales Contracts (tdsls3420m000) session.

You can accept small negative or positive deviations regarding the quantities. The deviations are calculated as follows in the Evaluate Sales Contracts (tdsls3420m000) 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
  • After a sales contract is evaluated, the Evaluation [y/n/repeat] field is updated in the Sales Contract Lines (tdsls3501m000) 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.