Purchase Contract Parameters (tdpur0100m300)

Field Information

Effective Date

The date and time the parameters are valid. The parameters are valid up to the effective date of a more recent parameter setting.

Maintaining Contracts Always Allowed

This check box is applicable for contracts on which goods are already called or for which turnover is already booked. If this check box is selected, you can reset the contract status to Free if the status is Active.

Note: This option must be selected if you want to change the data of current contracts.

Copy Special Contract to Normal Contract

If this check box is selected, you are allowed to copy special contracts to normal contracts in the Copy Purchase Contracts (tdpur3801m000) session.

Note: If you copy special contracts to normal contracts, you can receive error messages, because normal contracts and special contracts can have different price policies.

Copy Normal Contract to Special Contract

If this check box is selected, you are allowed to copy normal contracts to special contracts in the Copy Purchase Contracts (tdpur3801m000) session.

Note: If you copy normal contracts to special contracts, you can receive error messages, because normal contracts and special contracts can have different price policies.

Evaluate Contract before Deleting

If this check box is selected, you must evaluate contract lines with the status Terminated, before you can delete the contract.

Note: You can evaluate contracts in the Evaluate Purchase Contracts (tdpur3420m000) session.

You can delete a contract by:

• Selecting the Delete Record(s) button in the Purchase Contracts (tdpur3100m000) session.
• Using the Archive/Delete/Terminate Purchase Contracts (tdpur3203m000) session. In this session, you can also delete contracts with the status Free.

Link to PCS Module

If this check box is selected, and if an order is created for a customized item that is derived from a standard item, LN checks whether a purchase contract exists that applies to that standard item. An item is derived from a standard item if the Derived-from Item field is filled in the Items (tcibd0501m000) session.

Note: You cannot create purchase contracts for customized items. However, you can link a purchase order for a customized item to a purchase contract, if the customized item is derived from a standard item. In this case, the contract of the standard item applies to the order for the customized item.

Confirmation Needed?

If this check box is selected, purchase contracts must be confirmed by the purchase business partner before you can activate them.

To confirm a purchase contract, you must enter the purchase business partner's confirmation number in the Confirmation Number field of the Purchase Contracts (tdpur3100m000) session.

Use Corporate Purchase Contracts

If this check box is selected, you can use corporate purchase contracts.

Interactive Contract Linking

If this check box is selected, and several contract lines are effective and active, you can select the contract line with the appropriate price and discounts.

If this check box is selected, the following are applicable:

• If several contract lines are valid for a purchase order line, the Selected Purchase Contract Lines (tdpur3512s000) session is displayed. This session lists the valid special contracts and the normal contract with the highest priority.
  • You can cancel the contract linking. Consequently, the contract is not linked and the Contract Ignored check box is selected for the purchase order line.
  • If a contract is specified in the Contract field of the purchase order header, this contract is marked as the preferred contract in the Selected Purchase Contract Lines (tdpur3512s000) session.
• If only one normal or one special contract is effective and active, by default LN links this contract.

If this check box is cleared, and if an effective and active contract is available for the purchase order line, by default this contract is linked. The Selected Purchase Contract Lines (tdpur3512s000) session is not started. If multiple contracts are applicable, LN links the contract with the highest priority.

A contract is linked using this priority order:

1. Special contract from the order header
2. Special contract
3. Normal contract

• If a contract is specified on the order header, but the contract is not valid for the order line, the message stating the order header contract is not valid, is not displayed.
• When you click Link Contract on the appropriate menu of the Purchase Order Lines (tdpur4101m000) session, the Selected Purchase Contract Lines (tdpur3512s000) is always started if several contract lines are valid.

Note: 

This parameter is only applicable:

• When you can manually link contract lines to purchase order lines.
• For purchase orders and not purchase schedules.

Use only Header Special Contract

If this check box is selected, only one special contract can be linked to a Purchase Order when a special Contract is linked to the Purchase Order Header. Purchase order lines can only be linked to contract lines of the special contract of the purchase order header.

Note: To enable this functionality, a custom parameter must be defined for PUR in Custom Parameters (tcmcs0195m000) session.

Link Special Contract automatically

If this check box is selected, and several special contract lines are effective and active, by default the purchase order is linked to the special contract line with the highest priority. If only one normal or special contract is effective and active, LN links this contract.

If this check box is cleared, and several special contract lines are effective and active, a contract line is not linked. Click Link Contract on the appropriate menu of the Purchase Order Lines (tdpur4101m000) session, to manually link a contract line to the purchase order. If a special contract line does not exist, and only a normal contract line is valid, by default the normal contract line is linked to the purchase order line.

Note: 

• This parameter is only applicable when contract lines cannot be manually linked to purchase order lines, for example, when copying or generating purchase orders.
• This check box is only applicable for purchase orders and not purchase schedules.

Select Special Contract at Transfer from Planning

This parameter determines the process to link purchase contracts, when transferring planned purchase orders to actual purchase orders in Enterprise Planning .

If this check box is selected, and several special contract lines are effective and active for a planned purchase order, the Selected Purchase Contract Lines (tdpur3512s000) session is started when a planner transfers a planned order to an actual purchase order in Enterprise Planning . Consequently, a planner can select the appropriate special contract line. If a planner cancels the contract linking in the Selected Purchase Contract Lines (tdpur3512s000) session, by default LN links a normal contract line, if available.

If this check box is cleared, the Selected Purchase Contract Lines (tdpur3512s000) session is not started when a planner transfers a planned purchase order to an actual purchase order in Enterprise Planning .

If this check box is cleared, the following is applicable:

• If the Link Special Contract automatically check box is selected, by default a contract is linked during planned order transfer in Enterprise Planning .
• If the Link Special Contract automatically check box is also cleared, a buyer can click Link Contract on the appropriate menu of the Purchase Order Lines (tdpur4101m000) session to manually link a contract line to the purchase order line. If a special contract line does not exist, and only a normal contract line is valid, by default the normal contract line is linked to the purchase order line.

Consider Purchase Contracts when generating Purchase Orders

If this check box is selected, and purchase orders are generated automatically, a number of purchase contract header fields are defaulted to the purchase order.

These are the following fields:

• Order Type
• Reference A
• Buyer
• Buy-from, ship-from, invoice-from, and pay-to Address Code and Contact Code
• Warehouse
• Delivery Terms
• Carrier/LSP
• Currency
• Country
• Payment Terms
• Late Payment Surcharge

In case of direct delivery, subcontracting, and consignment payment, the contract's Order Type is not defaulted. In a direct delivery situation, the carrier and delivery terms are defaulted from the linked sales order.

If the link with the contract is broken, the defaulted fields are kept on the purchase order.

Action on Exceeding Maximum Quantity

Specify the action to take when the maximum contract quantity is exceeded.

Note: You can define the maximum contract quantity in the Purchase Contract Lines (tdpur3101m000) session.

LN keeps track of the total purchased quantity when a purchase order line or schedule (line) is linked to a purchase contract line.

Allowed values

Interactive

When the purchase order line is created, LN displays a message to link the purchase order line to the contract, if required. For purchase schedules, this option is not applicable and functions as the Skip Contract option without using a quantity tolerance.

Skip Contract

The purchase order/schedule line is not linked to the contract. On the contract line, you can specify a tolerance by which the maximum contract quantity can be exceeded before the contract is skipped.

Accept Contract

The purchase order/schedule line is linked to the contract regardless of exceeding the maximum contract quantity.

Always Use Contract Price and Discount

If this check box is selected, and an order-contract relation exists, you cannot change any price and discounts fields in the Purchase Order Lines (tdpur4101m000) session or linked material price information in the Material Price Information (tcmpr1600m000) session.

To change prices and discounts in the Change Price and Discounts after Receipt (tdpur4122m000) and Material Price Information (tcmpr1600m000) sessions, you must first break the link with the contract (for which a message is displayed in these sessions).

If this check box is cleared, and an order-contract relation exists, you can change price and discounts fields in the Purchase Order Lines (tdpur4101m000) session and linked material price information in the Material Price Information (tcmpr1600m000) session. The link with the contract is kept.

Allow Zero Price

If this check box is selected, you can specify a price of zero (0) on a purchase contract price revision.

Price Stage Mandatory

If this check box is selected, the price stage must be specified for a purchase contract price revision.

Number Group

The default number group of all purchase contracts.

Step Size for Lines

The interval between successive purchase contract lines in a purchase contract.

For example, if you enter the value 10, the numbers assigned to successive contract lines are 10, 20, 30, and so on.

Default Template

The default terms and conditions template based on which a terms and conditions agreement is generated in the Generate Terms and Conditions from Template (tctrm2200m000) session, which is linked to the purchase contract.

Note: You can start the Generate Terms and Conditions from Template (tctrm2200m000) session by clicking Generate Terms and Conditions from Template on the appropriate menu of the Purchase Contract (tdpur3600m000) session.

Log Contract Transactions

Define if contract header changes are written to contract history and which changes are written to history.

Note: 

• If this field is set to Last Transaction, and turnover is written to the history records, which is determined by the Log Turnover on Contract check box, the turnover history record is not deleted when a change is made. Instead, the difference between the current and previous turnover is logged.
• For reasons of system security, you should know which user entered a change and when.

Performance aspects

The setting of this field could affect system performance and database growth. For more information, refer to Log history data.

Allowed values

All Transactions

LN writes all changes to the history. The history records contain the transaction type, the logon code, the transaction date/time, and so on.

No Logging

LN does not write changes to the history.

Last Transaction

LN only writes the last change to the history. The history record contains the transaction type, the logon code, the transaction date/time, and so on.

Log Contract Line Transactions

Define if contract line changes are written to contract history and which changes are written to history.

Note: 

If you want financial data to be reconciled, you must set this field to All Transactions and select the Log Turnover on Contract and Log Financial Economic Transactions check boxes. Otherwise reconciliation cannot be applied.

LN performs reconciliation based on the purchase contract line history in the Purchase Contract Line History (tdpur3551m000) session.

Note: 

• If this field is set to Last Transaction, and turnover is written to the history records, which is determined by the Log Turnover on Contract check box, the turnover history record is not deleted when a change is made. Instead, the difference between the current and previous turnover is logged.
• For reasons of system security, you should know which user entered a change and when.

Performance aspects

The setting of this field could affect system performance and database growth. For more information, refer to Log history data.

Allowed values

All Transactions

LN writes all changes to the history. The history records contain the transaction type, the logon code, the transaction date/time, and so on.

No Logging

LN does not write changes to the history.

Last Transaction

LN only writes the last change to the history. The history record contains the transaction type, the logon code, the transaction date/time, and so on.

Purchase Contract Archiving Implemented

If this check box is selected, purchase contracts can be archived to an archive company.

You can archive purchase contracts in the Archive/Delete/Terminate Purchase Contracts (tdpur3203m000) session.

Note: Purchase contracts must be archived before purchase orders or purchase schedules can be archived.

Purchase Contract History Archiving Implemented

If this check box is selected, purchase contract history can be archived to an archive company.

You can archive purchase contract history in the Archive/Delete Purchase Contract History (tdpur3202m000) session.

Change Requests

If this check box is selected, the change request functionality is implemented for purchase contracts.

Series

The purchase contract series for change requests.

Process Purchase Contract Change Requests Automatically

If this check box is selected, an approved change request is automatically processed.

Log Turnover on Contract

If this check box is selected, the called quantity, the invoiced quantity, and the invoiced amount are written to the following sessions:

• Purchase Contract Line - Analysis (tdpur3513m000)
• Purchase Contract Line Detail Analysis (tdpur3513m100)
• Purchase Contract Line Turnover History (tdpur3551m100)
• Purchase Contract Line History (tdpur3551m000)

If this check box is cleared, the called quantity, invoiced quantity, and invoiced amount are not displayed in the previously mentioned sessions.

Note: 

If you want financial data to be reconciled, you must set the Log Contract Line Transactions field to All Transactions and select the Log Turnover on Contract and Log Financial Economic Transactions check boxes. Else, reconciliation cannot be performed.

LN performs reconciliation based on the purchase contract line history in the Purchase Contract Line History (tdpur3551m000) session.

Update Planned Inventory Transactions

This parameter applies to purchase contract lines with a delivery contract linked to it.

If this check box is selected, planned inventory transactions are logged when the contract line is activated.

If this check box is cleared, no planned inventory transactions are logged for the contract with a delivery contract linked to it.

Note: Contra posting of planned inventory transactions is carried out if called quantities are logged for the contract line.

Log Financial Economic Transactions

If this check box is selected, financial transactions are logged when the contract line is activated.

If this check box is cleared, no financial transactions are logged for the purchase contract.

Reversal transactions are logged when a contract line is deactivated or when called quantities are updated for the contract line.

Note: 

If this check box is selected, transactions are logged based on the Standard Cost or Order Price as specified in the Log Financial Economic Transactions field of the Procurement Parameters (tdpur0100m000) session. If the Log Financial Economic Transactions field is No in the Procurement Parameters (tdpur0100m000) session, you cannot select this check box.

If you want financial data to be reconciled, you must set the Log Contract Line Transactions field to All Transactions and select the Log Turnover on Contract and Log Financial Economic Transactions check boxes. LN performs reconciliation based on the purchase contract line history in the Purchase Contract Line History (tdpur3551m000) session.

Performance aspects

The setting of this field could affect system performance and database growth. For more information, refer to Financial economic transactions.

Print Contract Acknowledgment

If this check box is selected, the Contract Acknowledgement field in the Purchase Contracts (tdpur3100m000) session has the default value Print.

If this check box is cleared, the Contract Acknowledgement field in the Purchase Contracts (tdpur3100m000) session has the default value Do Not Print.

Note: In the purchase contract procedure, you do not need to print a contract acknowledgment.

Reprint Contract Acknowledgement after Modification

This check box determines the value of the Print Status field in the Purchase Contracts (tdpur3100m000) session if you modify a contract after it is printed as a final acknowledgement.

If this check box is selected, and you modify the contract after the final contract acknowledgement is printed in the Print Purchase Contract Acknowledgments (tdpur3405m000) session, LN automatically sets the Print Status field in the Purchase Contracts (tdpur3100m000) session to Changed. As a result, you can reprint the contract acknowledgement.

If this check box is cleared, and you modify the contract after the final contract acknowledgement is printed, the Print Status field in the Purchase Contracts (tdpur3100m000) session keeps the value Original Printed.

Number of Extra Contract Acknowledgment Copies

The number of extra copies of the contract acknowledgement that you want to print.

Check Contract on Vendor Rating

If this check box is selected, a check on vendor rating must be made while inserting or modifying contracts.

Warn if Vendor Rating is Below

This field specifies the minimum value of vendor rating. If you enter or modify a contract and the vendor's vendor rating is below this value, LN gives a warning message.

Note: You can only specify a percentage in this field if the Check Contract on Vendor Rating check box is selected.