Objective
In the ever-evolving world of procurement, contracts are a pillar of procurement, setting the terms and expectations that govern every transaction and partnership.
Contract Compliance is a set of features within SAP Ariba Procurement that ensure these agreements are honored, automating adherence and providing insights into performance and savings.
A contract serves as a formal agreement between a buying organization and a supplier, outlining the terms and conditions for purchasing goods and services on an ongoing basis.
Compliance is enforced by:
This is achieved through the building blocks in the system:
Controls can be configured for:
Users must be added to specific user groups in order to have permissions to work with contracts. The following groups offer important contract permissions:
| Contract Release User: | They manage the selection of contracts in procurement actions, ensuring alignment with existing agreements. |
| Contract Agent: | Initiators of contract requests, they lay the groundwork for contract compliance and participate in initial approval stages. |
| Contract Manager: | Overseers in the contract lifecycle, they refine contract requests and oversee compliance across procurement activities. |
| Contract Administrator: | Custodians of the contract system settings, they configure and maintain the approval and operational workflows. |
| Contract Approver: | Gatekeepers of contract progression, they authorize the advancement of contract requests into actionable agreements. |
| Contract Terms Bulk Import Admin: | Handlers of mass contract data, they ensure efficient data integration into SAP Ariba from various sources. |
Contract Requests are the starting point for contracts in SAP Ariba Procurement.
There are three ways to create contract requests.
Users may be granted access to create contract compliance requests directly in SAP Ariba Buying. A step by step contract request wizard guides you through the configuration one step at a time.
Contract requests can be imported via an Excel file formatted with contract terms and pricing. Begin by exporting an existing contract to Excel to use as a template.
When contract compliance is suite-integrated with SAP Ariba Contracts, users can create contract compliance requests as part of a contract workspace. Contracts and contract compliance requests can be created, changed, or submitted from the workspace. In this scenario, the Contract Terms document serves as the contract compliance request. Typically, the approval flow is automatic and approval is handled by tasks directly in the contract workspace.
| Status | Description |
|---|---|
| Composing | A user, generally a contract agent, is composing the Contract Request. CRs that are imported from Microsoft Excel spreadsheet files are created in the Composing status. A CR can return to the Composing status if the purchasing agent withdraws the request. |
| Submitted | The contract agent has submitted the CR for approval. |
| Denied | An approver has denied the CR. |
| Approved | The CR has been fully approved. |
| SourcingConfirming | Suite-integrated sites only. Contract creation is in process for a contract request associated with a contract workspace. |
| Processing | Contract creation from the contract request is in process. The CR remains in Processing until its associated contract moves to Processed. |
| Processed | A contract has been created from the CR. |
The contract compliance lifecycle for a customer typically starts with the creation of a contract. Once the contract is created, an effective date is set, and it becomes open for use.
During the open phase, the contract is actively monitored to ensure compliance with its terms and conditions. This includes tracking expiration dates, limits, and tolerances.
If the contract reaches its expiration date or if it is manually closed, it moves into the closed phase. However, if the contract was closed manually, it can be reopened as long as the expiration date has not passed, and the limits or tolerances have not been exceeded.
In cases where the contract is closed automatically, it can be reopened by modifying the corresponding contract request. This may involve extending the expiration date or increasing the limits or tolerances to accommodate the customer's needs.
Throughout the contract compliance lifecycle, the customer may also initiate contract requests for new agreements or modifications to existing contracts. These requests go through a separate process that includes creating a new contract or modifying an existing one based on the customer's requirements.
To generate or modify contract requests, you have the option to import data from Microsoft Excel spreadsheets. These spreadsheets are widely used for presenting contracts and pricing details.
If you have a contract defined in the format of an Excel spreadsheet, you can upload it to Contract Compliance.
To upload an Excel version of a contract:
Consider the following important points when importing Excel spreadsheets for contract management:
For information about how to export and import Excel spreadsheets, see: About Creating and Managing Contracts
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