Section 11: Contracts (Outline Agreements)

11.0SAP Outline Agreements (Contracts) Overview

In SAP, contracts are referred to as outline agreements. When a prices and terms are negotiated with a vendor, this information is captured on an SAP contract so that it will be available for ongoing purchasing activities. Contracts can be set up at the 3SO level so that all equity member hospitals can purchase materials via that contract, or at the Hospital Level, it is a pricing agreement or service agreement that is specific to one hospital.

Once a SAP outline agreement is created, a source list is also created. The source list indicates the plants that this contract is extended to. All requisitions and purchase orders obtain information from the contract such as price and vendor catalogue number for the stated term of the contract. If a contract term has expired and no replacement contract has been created, SAP will use the information in the info record to assign pricing, vendor catalogue number and tax codes.

3SO will manage the creation of SAP outline agreements and all changes to them. Hospital site buyers will have access to display contracts.

11.1Display SAP Outline Agreement (Contract)

Use Transaction Code ME33K to display a contract in SAP. <Enter

At the Display Contract: Initial Screen enter the Contract number (10 digit number beginning with 46) and <Enter>

It will then display the items on the contract as follows:

To look at the header details on a contract select the icon. The following information is found in the header: contract start and end date, vendor name, Payment Terms, Reference numbers, salespersons name and contact number, and the invoicing Vendor (Payee) for the Purchasing vendor.

If you need to find out more details on a particular item on the contract you can select/highlight the line item and select the icon. This will show the following information about the specific material such as vendor catalogue number, tax code, price, uom conversion, and contract quantity.

11.2Searching for Contracts in SAP

The common ways to search for contracts in SAP are:

  • ME3N – List display outline agreement by agreement number
  • ME3L – List display outline agreements by Vendor number
  • ME3M – List display outline agreements by Material number

11.3 Linking Contracts to PO’s

A contract is linked to a PO in the same manner as a requisition is converted to a

Purchase Order. The Document overview button is turned on and Contracts is

selected. The contract is then placed in the shopping cart and converted to a

PO.

TheContract Number is received from Contract and Procurement Specialist (Format: Begins with 4600xxxxx)

Go to PO CREATE

Click on Document Overview On

Select Tree

Select Contracts

Enter contract number into the highlighted field (Purchasing Document)

Execute using the clock

Process as any PO as found in Section 8, including all details from the contract as provided by the Contract and Procurement Specialist.

Note: Remember to include validity dates, which can be found in the Header on the Additional Data tab.

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