Advancing Contract Management

Objective

After completing this lesson, you will be able to apply identification strategies for contracts created via a Contract Workspace.

Contract Workspace

SAP Ariba Contracts

If SAP Ariba Contracts is integrated with SAP Ariba Buying and Invoicing, the creation of contracts takes place within SAP Ariba Contracts.​

In suite-integrated sites, SAP Ariba Contracts addresses three key areas of contract lifecycle management with the following features:​

  • Document Creation​
    • A suite of tools streamlines the process of creating rich contract documents, including tasks, workflows, approvals, and more.​
  • Template Library​
    • Workspace templates are used to control the steps involved in all different contract creation processes, providing a standard, reusable method of creation.​
  • Clause Library​
    • Pre-approved contract clauses are stored for selection by contract authors.​
  • Word Integration​
    • A tight integration with Microsoft Word allows authors to work directly in Word documents while supporting document synchronization, versioning, and detailed tracking of changes.

Analyze Contract Workspace Process Flow

Compliance contracts created via a contract workspace​

  1. A contract workspace is created where collaboration takes place with relevant stakeholders, such as legal teams or procurement departments. The workspace serves as a central hub for all contract-related activities.​
  2. ​The Contract Terms document within the workspace contains the pricing terms and other key information that will be used to create the compliance contract within SAP Ariba Buying and Invoicing.​
  3. The Contract Workspace is reviewed and must be approved by all necessary stakeholders. This step may involve multiple rounds of revisions and negotiations until all parties are satisfied.​
  4. Once the contract terms document is approved, a contract is created in open status within SAP Ariba Buying and Invoicing.

Contract Workspace Process Flow

The process starts with an optional contract request, followed by the creation of a contract workspace, then approval, and finishes with contract compliance.

Key Differences

SAP Ariba Buying and Invoicing: Contract ComplianceSAP Ariba Contracts
  • A feature within SAP Ariba Buying and Invoicing.​
  • Enforces compliance with established pricing terms and limits.​
  • Used to track spend, supplier performance, and savings within contracts.
Compliance Contracts begin with a Contract Request created either manually or via import.
  • Full contract authoring solution.​
  • Suite of tools for:​
    • Document Creation​
    • Collaboration and Negotiation​
    • Tasks and Approvals​
  • Contract Terms contains pricing terms and limits for Procurement.​
The Contract Terms document acts as the Contract Compliance Request within SAP Ariba Buying and Invoicing.

Contract Workspace

Contracts created in SAP Ariba Contracts via a Contract Workspace:​

  • ​Inherit a contract ID with the prefix CW.​
    • For example: CW59376​
  • Cannot be created, imported, or deleted in the SAP Ariba Buying and Invoicing module.​
  • Are closed in the SAP Ariba Buying and Invoicing module when the associated Contract Workspace is closed in SAP Ariba Contracts.​
  • Have a new version created in the SAP Ariba Buying and Invoicing module with the status Open when the associated Contract Workspace is amended in SAP Ariba Contracts.

No Release Order Receiving and Invoicing.

Unlike Release Order contracts which process receipts and invoices against each Release Order, No-release Order Contracts do not allow release orders to be issued against them. Instead, there is the option to allow direct receiving and invoicing (configurable in step 1 of the Contract Request Wizard).​

​No Release Order Contracts can alternatively be used solely for bookkeeping purposes when direct receiving and invoicing have been disabled.

Toggle switches for invoicing and supplier permissions” A screenshot displays a series of six toggle switch options related to invoicing and supplier permissions. Each option is presented with a question followed by two choices: “Yes” or “No.” The options include “Release Required?,” “Allow invoicing against contract?,” “Default invoice requester from contract?,” “Allow suppliers to add non-catalog items to invoice?,” “Allow supplier to edit invoice unit price?,” and “Allow supplier to enter invoice accounting?.” All toggle switches are set in the ‘No’ position, indicating restrictions on these actions within the system.

Since no release orders will be issued to update Used and Available amounts, the system has to use other types of accumulators to keep these amounts up-to-date.​

  • If invoicing is enabled, it uses invoicing accumulators.​
  • If invoicing is disabled, it will use receiving accumulators.​
  • If both invoicing and receiving are disabled, it will default to use the system parameters mentioned earlier which will have no effect.
Invoicing EnabledReceiving EnabledUsed to Calculate Use and Available Amounts and Quantities
YesNoInvoicing Accumulators
NoYesReceiving Accumulators
YesYesInvoicing Accumulators
NoNoDetermined by systems parameters
  • If enabled, users can receive against the contract.​
  • If receiving is enabled, SAP Ariba will perform a three-way match between the Contract, Receipt, and Invoice.​

​If receiving is not enabled, SAP Ariba will perform a two-way match between the Contract and Invoice. You may wish to consider additional invoice-level approvals for these use cases.

Invoice: Represented by a blue rectangle. Receipt: Shown as an orange rectangle. Contract: Depicted by a green rectangle. These three elements are interconnected by arrows, suggesting a cyclical process. The image likely illustrates financial or administrative interactions involving invoices, receipts, and contracts.

Creating a No Release Order Contract

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