Comparing Amendment Types

Objectives

After completing this lesson, you will be able to:
  • Identify amendment types and the implications of each one on the contract lifecycle.
  • Compare contract workspace editing possibilities available based on amendment type.

Amendment Types

The amendment process of a contract enables the contract project owner to make changes to the contract documents, and the workspace itself. For example, they can add a new Statement of Work to an agreement, or change the language or expiration date of the workspace. Amending a contract allows you to specify the types of changes you are making as well as restrict access as needed for different amendment types. An amendment unlocks the contract workspace for editing by creating a new version for it.

The table below lists the amendment types available in the SAP Ariba system and defines their characteristics.

AmendmentDefinition
AdministrativeIndicates an administrative change, no change to the actual contract terms. You can only edit the Overview, but not the contract attributes, and the team members.
Price UpdateIntended to update only the prices in a Contract Line Items document without changing the status of the contract.
AmendmentIndicates that changes are required to the contract beyond just editing dates. This may include changes to the commodity or item coverage, changes to the pricing terms, or verbiage in the contract by adding separate addenda documents with additional clauses to the contract workspace.
RenewalThe contract is being amended to change the active dates for the contract, for example, the effective date, and the reminder settings.
TerminationIntended to close the contract before it's expiration date. It allows you to change the expiration date and reminder settings.

Note

Depending on your SAP Ariba solution’s configuration, you may have additional fields available for each amendment type.

Administrative Amendments

Administrative amendments allow you to update non-contract details, such as adding a team member, uploading a supplemental document, or modifying a description field. However, they do not alter the contract terms. If you select this amendment type, the Contract Status field does not change (the value stays Published).

Out of the box fields that become editable through an administrative amendment are:

  • Name
  • Description
  • Owner
  • Access Control

Instead of republishing the workspace after making changes, you will complete the amendment. However, completing an administrative amendment triggers project state change notifications, just as if the workspace were published. Any events normally triggered by workspace publication will also occur. Additionally, completing an administrative amendment increments the workspace version number.

Play the video to learn how to create an administrative amendment for a contract workspace.

Price Update Amendments

If a customer uses contract line items documents to store their pricing in a contract workspace, they can perform Price Update amendments to modify the pricing information there.

Note

Price Update Amendments are available only in realms that have the contract line item documents functionality configured. It only permits existing items to be modified, line items cannot be added or deleted.

This amendment type is used to update pricing only in the Contract Line Items Document without changing the workspace status. A change in the status of the contract workspace usually requires a lengthy approval flow, but in this case, it is avoided as the status does not change to Draft Amendment. The contract status remains as Published but the version will say (editing).

Note

When line items from a sourcing event are added to an existing contact, the amendment type is automatically set to Price Update. In such cases, if no Contract Line Items Document is available in the contract workspace, the items are added to the pricing terms Excel document.

Play the video to learn how to create a Price Update amendment for a contract workspace.

Amendment Amendments

Performing an Amendment amendment, also known as a full amendment, indicates that changes are required to the main contract workspace attributes and documents. This type of amendment allows you to change any part of the project. This may include changes to the commodity or item coverage, changes to the pricing terms, or verbiage added to the contract by adding separate addenda documents with additional clauses to the contract workspace.

Note

Changing a workspace that is associated with a task that is set to repeat for each draft reactivates the task.

If your SAP Ariba Contracts solution is integrated with SAP Ariba Procurement solutions, each Amendment or Renewal amendment of a contract workspace that contains a Contract Terms document also triggers a new version of the corresponding contract in SAP Ariba Procurement solutions. Contract Term Attributes during a renewal amendment indicates the contract period for which the contract is applicable.

Play the video to learn how to create an Amendment amendment to a contract workspace.

Renewal Amendments

A Renewal Amendment indicates that the contract workspace is being amended simply to change the active dates for the contract, such as the effective date, the expiration date, and the reminder settings. This could represent situations where the contract was extended with the same terms as the previous version.

Note

If the contract expiration type is Auto Renew and you want to extend the contract after the last expiration date has passed, choose Renewal.

If you want to extend contracts that are in expired status, you can choose Renewal amendment to update the expiration date and publish the contract immediately without having to first create an Administrative amendment.

Practice creating a renewal amendment by completing the Creating a Renewal Amendment exercise below.

Creating a Renewal Amendment

Business Scenario

Learners create a renewal amendment for the contract workspace.

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