Purpose

The purpose of this document is to define the conversion approach to create 9040 - Purchasing Contracts and outline agreement 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..

An outline agreement in SAP MM is a long-term purchasing agreement with a vendor, defining terms, prices, and quantities for materials or services over a set period. The two main types are Contracts and Scheduling agreements,

In SAP ECC, contracts are as per the below

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

in SAP ECC, there are few outline agreements to be migrated into S/4.

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.

A catalog contract in SAP is defined as specialized, legally binding, long-term procurement agreement (value or quantity) published within a digital catalog to enforce negotiated pricing, It streamlines compliant purchasing by automatically applying agreed rates to catalog items, enabling users to order directly from pre-approved, contract-covered items in SAP.

The outline purchase agreement is often referred to as a blanket or umbrella purchase order. It is basically a long-term agreement between the purchasing department and vendor for material or services for a defined period of time. The purchasing department negotiates with the vendor a set of terms and conditions that are fixed for the period of agreement.

Conversion Scope

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

The data from legacy system includes:

1. The plants and purchasing organizations are in the migration scope.
2. The material and vendor in the Contracts are in the migration scope.
3. The contract is still within the validity period.
4. Only approved and released contracts can be migrated.
5. Meta data for the contracts from Icertis (TBC- main source and need the data from R2 team).
6. ECC Source list will be the one of the source to identify the scope of the contracts.
7. Contracts scope will be verified with the one year consumption (TBC)
8. Company codes are in migration scope.
9. Material Groups are in migration scope.
10. Vendor + Purchasing Organizations combination is in migration scope at Purchasing Document Header data level
11. Material + Plant combination is in migration scope at Purchasing Document Item data level.

The data from legacy system excludes:

1. Deletion Indicator (EKKO-LOEKZ) = "X" at Purchasing Document Header level
2. Validity period End (EKKO-KDATE) < System date at Purchasing Document Header level
3. Deletion Indicator (EKKO-LOEKZ) = "X" at Purchasing Document Item Data level
4. Header contracts with no line item data.
5. Open Purchase Orders, Quotation requests
6. Master Conditions - During the creation of outline agreements, you can specify just one time period for each variable key.

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

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

9. Version management (document change management).

10. ternal services (planned and unplanned services).
11. Item categories (Third-Party, Enhanced Limits, Consignment, Subcontracting).

12. Multilevel item hierarchy.

Notes (only for information):

1. If multiple records exist for the same material and vendor, select only the one with the most recent effective date.
2. Migrating SAP purchasing contracts requires converting released, approved legacy agreements into active S/4HANA contracts, often maintaining original contract IDs. 
3. If Purchasing info record is already available, the price is taken from this info record.

Process-Flow diagram:

Important Tables for Purchasing Contracts:

1. EKKO: Purchasing Document Header data.
2. EKPO: Purchasing Document Item data.
3. EKKN: Account Assignment in Purchasing Document

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

N/A

Document Management

Legal Requirement

N/A

Special Requirements

Different countries/regions have differing legal requirements (TBC)

Any intercompany contracts (TBC)

Target Design

The technical design of the target for this conversion approach. . The below table shows the specific Tables and Key fields as per the Migration Cockpit Template will provide all the details for the target design

Conditions Data 

NOTES on CONDITION RECORDS ( (Confirmed by Youssef El Mokaddem)

In S/4HANA, purchasing Contracts Conditions data is stored in A016- Contract Item table  When Purchasing Contracts are migrated via the Migration Cockpit, the system automatically generates a new condition document number (KNUMV) during Purchasing Contracts creation.

SAP purchasing contract conditions are stored primarily in A016 (condition record numbers by contract/item) and KONP (condition items/values), with pricing details in PRCD_ELEMENTS (S/4HANA) or KONV (ECC). These tables link contract document data (EKKO/EKPO) to pricing, discounts, and validity periods

For the conditions data make sure during the migration of contracts, the net price field (EKPO-NETPR) is well maintained to reflect the conditions data.  All existing Price conditions (PB00 ; PC & ZI01) from ECC systems (WP2/PF2) will be migrated as part of Purchasing outline agreement creation with the new Price condition PMP0 in S/4.

Key SAP Purchasing Contract Condition Tables:

• A016: Document Index: Variable Key (Links contract to condition record number).
• KONP: Condition Item (Contains price, discount, or surcharge amount/percentage).
• PRCD_ELEMENTS: Pricing Element (S/4HANA - replaces KONV).
• KONV: Purchasing Condition Records (ECC).
• EKKO: Purchasing Document Header (Contract number).
• EKPO: Purchasing Document Item (Contract item). 

Key Fields & Usage:

• Find Condition Records: Enter contract number (EBELN) and item (EBELP) in table A016 to find the condition record number (KNUMH).
• Get Condition Values: Pass the KNUMH from A016 to table KONP to get prices or percentages.
• Validity: Condition records are valid for specific periods stored within KONP. 

There is no need to:

• Migrate A016 data
• Migrate KONV/KONP
• Maintain an XREF for KNUMV
• Populate EKKO/EKPO-KNUMV manually
• KNUMV is a technical, system-generated key and will be created automatically when the Purchasing Contracts and its conditions are loaded.

So the correct approach is to leave it blank — S/4 will generate it.

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  Syniti Knowledge Platform's (SKP) staging tables. There are 2 possibilities:

1. The data exists. Syniti Knowledge Platform's (SKP) connects to the source and loads the data into Syniti Knowledge Platform's (SKP) staging tables.
2. . 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 Syniti Knowledge Platform's (SKP); cannot connect to the source, data is loaded to the repository from the provided source system extract/report.
3. The data does not exist (or cannot be converted from its current state).  The data is manually collected by the business directly in Syniti Knowledge Platform's (SKP). This is to be conducted using DCT (Data Collection Template) in Syniti.  (TBC)

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) - TBC

Target Ready Data Collection Template will be created for data with exception of some fields which require transformation as mentioned in the transformation rule.

if business confirms  that contract is needed then ‘DCT’ to be used to collect information for missing contracts (TBC)

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 Syniti 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 Syniti.
      
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

Value Mappings Register Link: MM Config Values.xlsx - Google Sheets

Transformation Run Sheet

Transformation Rules

Transformation Mapping

Value mapping tables google drive path - MM Config Values.xlsx - Google Sheets

Transformation mapping sheet google drive path - Conversion Specification - Mappings - Google Sheets

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

5) G/L Accounts

6) Cost Centers

7) Profit Centers

8) WBS Elements

9) Asset Master Data

10) Sales Order data

S/4 HANA Data Migration Cockpit Template (for the reference to Syniti team to help the technical build for the conversion program:

Configuration

Conversion Objects

Error Handling

Post-Load Validation

Project Team

Completeness

Accuracy

Business

Completeness

Accuracy

Key Assumptions

• 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