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 plants and purchasing organizations are in the migration scope.
• The material and vendor in the Contracts 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.
2. Meta data for the contracts from Icertis (TBC- main source and need the data from R2 team).
3. ECC Source list will be the one of the source to identify the scope of the contracts.
4. Contracts scope will be verified with the one year consumption (TBC)
5. Company codes are in migration scope.
6. Material Groups are in migration scope.
7. Vendor + Purchasing Organizations combination is in migration scope at Purchasing Document Header data level
8. 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.

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

Summarize Document Management requirement, if any

Legal Requirement

N/A

Special Requirements

Different countries/regions have differing legal requirements (TBC)

Any intercompany contracts (TBC)

Target Design

With Functional input, document the technical design of the target fields that are in the scope of this document.

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 (TBC )

Data Cleansing

All data cleansing should take place in the data source system as defined in this document, unless system limitations prevent it.

If data cleansing is managed outside of the source system (e.g. Syniti Migrate, 3rd Party Vendor, DCT), the necessary documentation must be produced and appended to this deliverable for sign-off.

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 inSyniti Knowledge Platform's (SKP). This is to be conducted using DCT (Data Collection Template) in Syniti.

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)

Target Ready Data Collection Template will be created for Data Object 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)

<Object> DCT Rules

Extraction Dependencies

List the steps that need to occur before extraction can commence

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 Migrate 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 Migrate
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

List the Configurations required before loading can commence

Conversion Objects

Error Handling

The table below depicts some possible system errors for this data object during data load. All data load error is to be logged as defect and managed within the Defect Management

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.

Any additional key assumptions.

See also

Insert links and references to other documents which are relevant when trying to understand this decision and its implications. Other decisions are often impacted, so it's good to list them here with links. Attachments are also possible but dangerous as they are static documents and not updated by their authors.

Change log