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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
Preapproved 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:

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.
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.
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.
Once the Contract Terms document is approved, a Contract is created in Open status within SAP Ariba Buying and Invoicing.

The flowchart visually represents the lifecycle of a contract, from Optional Contract Request, Contract Workspace, Approval and Contract compliance. Each step plays a crucial role in efficient contract management.

Key Differences

SAP Ariba Buying and Invoicing: Contract Compliance	SAP 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.

SAP Ariba Buying and Invoicing: Contract Compliance

SAP 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.

Auto Release Contracts for Automatic Generation of Requisitions

Auto Release Contracts are a type of release order contract that can be used to automatically generate requisitions based on a configured schedule. This feature streamlines the procurement process, reducing administrative tasks and ensuring timely delivery of goods or services.

How Do Auto Release Contracts Work?

A scheduled task runs daily to identify Auto Release Contracts that meet the configured criteria.
Separate requisitions are generated for recurring and non-recurring items on the contract.
If the schedule is satisfied and the contract is valid, purchase orders are automatically created based on the generated requisitions.
If there are any validation errors, the requisition remains in a composing state, and an email notification is sent to the preparer.

To use Auto Release Contracts, you must enable the following parameters:

Application.Contract.MasterAgreement.AutoReleaseContractForPRAutoGeneration
Application.Contract.MasterAgreement.AutoReleaseContractForServiceItems

Note

The Auto Release contracts feature can only be used in realms integrated with SAP ERP systems.

Auto Release Contracts for Material Goods

To create Auto Release Contracts for material goods:

Select Create, then choose Contract Request.
Select the Item Level contract type.
Choose Yes for Release Required.
Choose Yes for Auto Release..
Enter a value for the Auto Release Preparer field.
Configure the recurring and non-recurring items, including release quantities.
Submit the contract request for approval.

Once approved, the contract will be created and become available for automatic requisition generation.

The auto release scheduled task will run daily to check for eligible contracts.
Separate requisitions will be generated for recurring and non-recurring items.
Purchase orders will be created if all validation checks are passed.

Auto Release Contracts for Services

To create Auto Release Contracts for services:

Select Create, then choose Contract Request..
Select the Item Level contract type.
Choose Yes for Release Required.
Choose Yes for Auto Release.
On the Pricing Terms page, select Add items.
Select the Commodity Code for the required service.
Set the Item Category to Service.
Enter the Max Amount and the Expected Amount.
If the item is a nonrecurring item, enter the Service Start Date and the Service End Date.
If the item is a recurring item,
Select Yes for Recurring.
Select the Frequency for automatically generating the requisition.
Select the Start Date and the End Date during which the requisitions are to be generated.
Submit the contract request for approval.

Once approved, the contract will be created and become available for automatic requisition generation.

The auto release scheduled task will run daily to check for eligible contracts.
Separate requisitions will be generated for recurring and non-recurring items.
Purchase orders will be created if all validation checks are passed.

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