Purpose

The purpose of this document is to define the conversion approach to create 9040 - Purchasing Contracts in S/4 HANA.

A purchasing contract is a legally-binding purchase agreement that contains special conditions that are negotiated between a buyer and a seller, covering the supply of goods or the performance of services. The contract is valid for a specific period, during which goods and services are released against the contract. The purchasing contract enables buyers to create purchasing contracts for frequently procured goods or services. A released contract can be used as a source of supply for the procurement of goods or services through a purchase order, a goods and service acknowledgement or a supplier invoice. The releases made against the contract by these documents are updated in the contract..

In SAP, contracts are of two types:

1. Quantity Contracts (Contract type MK)
2. Value Contracts (Contract type WK)

A quantity contract is defined as the type of contract where the total quantity to be ordered during the validity period of the contract is known in advance. The contract is regarded as fulfilled when release orders totaling a given quantity have been issued.  

When material is required,  a Purchase Order is created with reference to the Contract for delivery of the material. The Purchase Orders, created with reference to contracts, are also known as call-off orders.

A value contract is defined as is a long-term, legally binding agreement with a customer or vendor to purchase/supply goods or services up to a specified total monetary value within a set period. It does not specify exact delivery dates or quantities, allowing for flexible release orders until the target value is met.

Conversion Scope

The scope of this document covers the approach for converting active Purchasing Contracts from Legacy Source Systems into S/4HANA.

• The plants and purchasing organizations are in the migration scope.
• The material and vendor in the quote are in the migration scope.
• The contract is still within the validity period.
• If multiple records exist for the same material and vendor, select only the one with the most recent effective date.
• Migrating SAP purchasing contracts requires converting released, approved legacy agreements into active S/4HANA contracts, often maintaining original contract IDs. 
• If Purchasing info record is already available, the price is taken from this info record.

The data from legacy system includes:

1. Only approved and released contracts can be migrated.

The data from legacy system excludes:

1. Header contracts with no line item data.
2. Open Purchase Orders, Scheduling agreements, and Quotation requests
3. Master Conditions - During the creation of outline agreements, you can specify just one time period for each variable key.

4. Scales are not supported during the creation of outline agreements.

5. Volume rebate conditions in outline agreements are not taken into account.

6. Version management (document change management) is not supported.

7. ternal services (planned and unplanned services) are not supported.
8. Item categories (Third-Party, Enhanced Limits, Consignment, Subcontracting) are not supported.

9. Multilevel item hierarchy is not supported

Important Tables for Purchasing Contracts:

1. EKKO: Header data.
2. EKPO: Item data.

The following structures or features are supported in SAP S/4HANA:

1. Header Data

2. Supplier Address

3. Header Texts

4. Item Data

5. Delivery Addresses

6. Account Assignment

7. Item Texts

List of source systems and approximate number of records 

Additional Information

Multi-language Requirement

Document Management

Legal Requirement

Special Requirements

Target Design

The technical design of the target for this conversion approach.

Data Cleansing

Conversion Process

The high-level process is represented by the diagram below:

Data Privacy and Sensitivity

Extraction

Extract data from a source into . There are 2 possibilities:

1. The data exists. connects to the source and loads the data into . There are 3 methods:
   1. Perform full data extraction from relevant tables in the source system(s).
   2. Perform extraction through the application layer.
   3. Only if ; cannot connect to the source, data is loaded to the repository from the provided source system extract/report.
2. The data does not exist (or cannot be converted from its current state). The data is manually collected by the business directly in . This is to be conducted using DCT (Data Collection Template) in

The agreed Relevancy criteria is applied to the extracted records to identify the records that are applicable for the Target loads

Extraction Run Sheet

Selection Screen

Data Collection Template (DCT)

DCT Rules

Extraction Dependencies

Transformation

The Target fields are mapped to the applicable Legacy field that will be its source, this is a 3-way activity involving the Business, Functional team and Data team. This identifies the transformation activity required to allow to make the data Target ready:

1. Perform value mapping and data transformation rules.
   1. Legacy values are mapped to the to-be values (this could include a default value)
   2. Values are transformed according to the rules defined in
2. Prepare target-ready data in the structure and format that is required for loading via prescribed Load Tool. This step also produces the load data ready for business to perform Pre-load Data Validation

Transformation Run Sheet

Transformation Rules

Transformation Mapping

Transformation Dependencies

Pre-Load Validation

Project Team

Completeness

Accuracy

Business

Completeness

Accuracy

Load

The load process includes:

1. Execute the automated data load into target system using load tool or product the load file if the load must be done manually
2. Once the data is loaded to the target system, it will be extracted and prepared for Post Load Data Validation

Load Run Sheet

Load Phase and Dependencies

Pre-requisites:

1) Vendor Master Data

2) Material Master data

3) Material Groups

4) Purchasing Info Records

Configuration

Conversion Objects

Error Handling

Post-Load Validation

Project Team

Completeness

Accuracy

Business

Completeness

Accuracy

Key Assumptions

• Master Data Standard is up to date as on the date of documenting this conversion approach and data load.
• Purchasing Contracts are in scope based on data design and any exception requested by business.
• Migrate released and approved contracts only. Note that the supplier is not informed again after migration of a purchasing contract because only released purchasing contracts are migrated to the SAP solution.
•  If a contract has not been released or approved in the legacy system, create a new purchasing contract with a new contract ID in the SAP solution and copy the data from the legacy system into the new purchasing contract in your SAP solution manually.

• The contract ID in your SAP solution must be the same as in the legacy system. Change the contract ID for technical reasons only (for . if the number range of the migrated contracts would exceed the number range in the SAP solution).

• If the purchasing contract is related to materials or services, the purchasing status must be set to active in the corresponding materials or services.

• Migration of change history, document flow history and approval history is not supported.

• Migration of administrative data is not supported, for example, creation date and time, creation user, last changed date and time.

See also

Change log