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Using Situation Handling for Contract Management

Objective

After completing this lesson, you will be able to explore situation handling for contract management.

Working with Situation Handling

In SAP S/4HANA, Situation Handling refers to the framework that allows users to detect and handle potential issues or problems within the system. It provides intelligent, proactive alerts and notifications to users based on predefined rules and conditions.

The framework of Situation Handling includes the following key features:

Detection: Situation Handling uses advanced algorithms and machine learning techniques to detect anomalies, trends, and potential issues within the system. It continuously monitors data and processes to identify situations that require attention.
Alerting: Once a potential issue is detected, Situation Handling generates alerts and notifications to inform users about the situation. These alerts are delivered in real time to ensure timely response and action.
Root cause analysis: Situation Handling provides tools and capabilities to perform root cause analysis, allowing users to investigate the underlying factors contributing to a particular situation. This helps in understanding the reasons behind the issue and enables effective problem-solving.
Automatic actions: In some cases, Situation Handling can be configured to automatically trigger predefined actions or workflows in response to a detected situation. This could include initiating corrective measures, escalating the issue to relevant stakeholders, or implementing predefined mitigation strategies.
Collaboration and communication: The framework facilitates collaboration and communication among users and stakeholders involved in handling a particular situation. It provides a platform for sharing information, discussing potential solutions, and coordinating efforts to resolve the issue.

Overall, Situation Handling in SAP S/4HANA aims to improve operational efficiency, minimize the impact of potential issues, and enable proactive and intelligent decision-making. It helps organizations to effectively manage and respond to a wide range of situations, ultimately leading to better business outcomes.

Using Situation Handling for Contract Management

There are situation handling templates available for contract management:

In Situation Handling, the following templates are currently available:

PROC_CONTRACTCONSUMPTNPREDICTION Predict Consumption of Quantity Contract
PROC_CONTRACTREADYTOUSE_V2 Contract is Ready as Source of Supply
PROC_CONTRACTREADYTOUSE_V3 Contract is Ready as Source of Supply

In extended Solution handling, the following template is currently available:

PROC_ABOUT_TO_EXPIRE_CTR Expiration of Purchase Contracts

Expiration of Purchase Contracts:

As a configuration expert for business processes (SAP role SAP_BR_BPC_EXPERT), you can use this template to inform purchasers about the expiration of a purchase contract.

By default, the notification is sent when the expiration date of the purchase contracts is 30 days or less from the current date. However, you can choose to customize it to any number of days. For instance, if you want to send the notice 45 days before the expiration date of purchase contracts, you need to create a date function.

The predefined settings in this template determine that the notification addresses only members of the Procurement team category. You can also use the predefined filters Purchasing Organization, Purchasing Group, Company Code, and Supplier to narrow down the recipients.

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