How to Create Contract Po in Sap
Creating contract PO in SAP can be a bit complicated if you are not well-versed in the system. However, with a bit of guidance, you can easily create contract PO in SAP. In this article, we will discuss step-by-step instructions on how to create contract PO in SAP.
What is a Contract PO?
Before we start, let`s first understand what a contract PO is. A contract PO is a type of purchase order that is used to purchase goods or services for a specific period of time. A contract PO is beneficial for businesses that have a long-term relationship with the supplier. It helps in reducing the administrative work and avoids the need to create a PO every time you need to purchase goods or services from the supplier.
Steps to Create Contract PO in SAP:
1. Create a PO: The first step is to create a PO in SAP. To create a PO, go to the SAP Menu and select Logistics -> Materials Management -> Purchasing -> Purchase Order -> Create. You will need to enter the vendor number, plant code, and other relevant details.
2. Select Contract Type: Next, you need to select the contract type. To do this, go to the “Document type” field, and select the appropriate contract type.
3. Enter Validity Dates: In the “Validity Dates” field, enter the start and end date for the contract. This will define the time period for which the contract will be valid.
4. Enter Item Details: In the “Item Overview” section, enter the details of the items you want to purchase. This includes the material code, quantity, and price. Once you enter the item details, SAP will automatically update the total contract value.
5. Enter Payment Terms: In the “Payment terms” field, enter the payment terms for the contract. This includes the payment due date, discount percentage, and any other relevant details.
6. Save the Contract: Once you have entered all the relevant details, save the contract PO by clicking on the save button.
7. Release the Contract: Finally, you need to release the contract PO for processing. To do this, go to the PO history and select the contract PO. Then, click on the release button.
Conclusion:
Creating a contract PO in SAP can be a bit daunting, but by following these simple steps, you can easily create a contract PO. By creating a contract PO, you can save time and administrative costs while ensuring long-term supply of goods or services from the supplier.