This document provides a training manual on creating, changing, and viewing purchase contracts in SAP MM. It outlines the key steps to create a contract by entering header data such as the vendor, validity period, and items including the material, quantity, and price. Contracts can be created manually or from a purchase requisition. The manual also describes how to change contract data using transaction code ME32K and view contract details with ME33K. The goal is to guide users through setting up binding purchase agreements with vendors for materials or services over a specified time period.

1. ! "# # ! $ % TRF/P2P/1.2.3 & ''( )''
End User Training Manual
for
SAP MM – Material Management
Process Name: Purchase Contract
Process No: TRF/P2P/1.2.3
Control Copy No: TRF/P2P/1.2.3/01
Doc Version Description Prepared by Date Reviewed by Approved by
00 Draft Srinivas .T 25/12/2009

2. TRF-SURE-EU TRG Manual (TRF/P2P/1.2.3) – 004 Rev. 00
Page 2 of 17
Enterprise Procurement to pay process in TRF has the following business processes.
Sl. No. TRF
Enterprise
Process No.
Process Name
1 TRF/P2P/1.1 PR processing
2 TRF/P2P/1.2.1 Procurement
planning
3 TRF/P2P/1.2.2 RFQ & Comparison
4 TRF/P2P/1.2.3 Purchase Contract
5 TRF/P2P/1.2.4 Create PO
6 TRF/P2P/1.3 GRN
7 TRF/P2P/1.4 Storage
Management
8 TRF/P2P/1.4.1 Inventory
verification
9 TRF/P2P/1.5 Invoice Verification
10 TRF/P2P/1.6 Vendor Evaluation
For each of the above processes, there are separate End User Training Manuals are
available
This document covers sl. No.4 of the above list, that is Purchase Contract
This End User Training manual on Purchase Contract consists of the
Following sequence of sub-processes as listed in the Table of contents (next page)

3. TRF-SURE-EU TRG Manual (TRF/P2P/1.2.3) – 004 Rev. 00
Page 3 of 17
Purchase contract –Overview & definition............................................................................. 4
This below information is only for readable purpose and creating Contract is explained below
using T code-ME41............................................................................................................... 5
1.2.3-Creating a Contract Manually (Explanation)................................................................. 5
1.2.3- Creation of Purchase Contract W.R.T PR-ME31k in SAP ........................................... 7
1.2.3-Changing the contract-ME32K ................................................................................... 13
1.2.3-Displaying the contrct-ME33K.................................................................................... 14

4. TRF-SURE-EU TRG Manual (TRF/P2P/1.2.3) – 004 Rev. 00
Page 4 of 17
Definition
In the MM Purchasing component, a contract is a type of outline purchase agreement
against which release orders (releases) can be issued for agreed materials or services as
and when required during a certain overall time-frame. (In the literature and in practice,
similar concepts may also be referred to by a number of other terms, such as "systems
contract", "blanket order agreement", "blanket contract", and "period contract".)
Structure
The contract consists of items defining the individual materials, material groups, or services
with prices and in many cases quantities.
An item is assigned to an item category, which defines the type of procurement (e.g. item
category K for consignment, or L for subcontracting).
An item of the procurement type "external service" contains a set of service specifications.
Such specifications may be hierarchically structured. The summary view of such a
hierarchical structure is termed an "outline", and the individual levels of the hierarchy are
referred to as "outline levels". Quantities are specified in service lines. Services can be
released (ordered, or called off against the contract) at item level or at the level of the
service line.
Costs can be apportioned among various Controlling objects via the account assignment.
Release orders issued against the contract (see below) are logged in the release
documentation.
Contracts can take the following forms:
• Quantity contracts
Use this type of contract if the total quantity to be ordered during the validity period of
the contract is known in advance. The contract is regarded as fulfilled when release
orders totalling a given quantity have been issued.
• Value contracts
Use this type of contract if the total value of all release orders issued against the
contract is not to exceed a certain predefined value. The contract is regarded as
fulfilled when release orders totalling a given value have been issued.

5. TRF-SURE-EU TRG Manual (TRF/P2P/1.2.3) – 004 Rev. 00
Page 5 of 17
You can also set up corporate buying contracts with your vendors. These are valid for all
plants and company codes within a client.
Over the contract validity period, certain quantities of the materials or services covered are
released (called off) against the contract as and when required through the issue of
purchase orders referencing the latter. Such purchase orders are thus termed "contract
release orders" or simply "release orders". (Outside SAP, particularly in the UK; they may
also be referred to as "call-off orders".)
!"
"#$#% & '
1. Choose in easy access –logistics-MM-Purchasing- Outline agreement- Contract Create
The initial screen appears.
2. Enter the necessary data. If you make any specifications under the group heading Default
data, this data will appear as the default data in each item.
In the Agreement type field, specify whether you are creating a quantity or value contract, for
example.
3. Press
ENTER.
The header data screen appears.
4. Enter the contract validity period. Check the other fields on this screen and make any
necessary changes (e.g. the terms of payment) and define the header conditions (Maintain
Conditions)
5. Press
ENTER .
The item overview screen appears.
6. On this screen, enter the information for each item (material number, target quantity, price,
receiving plant, or account assignment, etc.) using the same procedure as with purchase
orders.

6. TRF-SURE-EU TRG Manual (TRF/P2P/1.2.3) – 004 Rev. 00
Page 6 of 17
Material without a master record: leave the field for the material number empty and enter
the following:
– Short description of the relevant material or service in the Short text field
– Material group to which the material belongs, in the Material group field
– Account assignment category
you can enter u (unknown) or the category of an account assignment.
– The target quantity and the order unit
7. If you specify an account assignment category other than
U (field A), you must enter the relevant account assignment data for the item. To do so,
choose Item ® Account assignments (see also Account Assignment).
8. If necessary, review the details for each item. Select the item(s) to review. Then select Item
Details
9. Enter the desired conditions.
10. Enter further text for the item if any additional instructions to the vendor or Goods Receiving
are necessary. Choose Item
11. ® Texts ® Text overview.
12. Save the contract.
13. The contract is created in the SAP System.

7. TRF-SURE-EU TRG Manual (TRF/P2P/1.2.3) – 004 Rev. 00
Page 7 of 17
"#$#% ( #)# ) %"* +,
The contract is a binding commitment to procure a certain material or service from a vendor
over a certain period of time.
S.N0 Field name/Activity Description EG: User action and values
1 vendor number Enter the vendor's
number.
300000
2 agreement type Choose an agreement
type for the outline
agreement you want to
create.
MK
3 agreement date Date the agreement
was created.
25.12.2009
4 purchase
organization
Entry of the
responsible purchasing
organization is
mandatory.
1000
5 purchase group Enter the key for the
responsible purchasing
group.
100

8. TRF-SURE-EU TRG Manual (TRF/P2P/1.2.3) – 004 Rev. 00
Page 8 of 17
Enter vendor number, agreement
type, agreement date, purchase
organization, purchase group &
plant optional as per the
requirement of TRF SBU.
Note: Contract can also be created
with reference to purchase
requisition or directly.
Click reference to Purchase
requisition
Here MK is the standard
quantity contract

9. TRF-SURE-EU TRG Manual (TRF/P2P/1.2.3) – 004 Rev. 00
Page 9 of 17
In Contract header data ,enter
Fields In header data
Vaild start
Vaild end
Target value
Payment terms
Vendor quotation date &
Other reference data.
Enter validity end date
and press enter, next
screen appears as

10. TRF-SURE-EU TRG Manual (TRF/P2P/1.2.3) – 004 Rev. 00
Page 10 of 17
In item Overview enter
Material Number, Account assignment category, target quantity since we had selected
agreement type as quantity contract
Now select purchase requisition line and click
adopt details as shown, all the details from PR
will be copied into Contract next screen
appears as

11. TRF-SURE-EU TRG Manual (TRF/P2P/1.2.3) – 004 Rev. 00
Page 11 of 17
After entering all the data, press next screen appears as
Note: Since we are creating contract with reference to PR, no need to enter all the data
.Pricing related conditions will be copied from preceding document.

12. TRF-SURE-EU TRG Manual (TRF/P2P/1.2.3) – 004 Rev. 00
Page 12 of 17
Quantity contract is created
with the number 2200000004

13. TRF-SURE-EU TRG Manual (TRF/P2P/1.2.3) – 004 Rev. 00
Page 13 of 17
"#$#% %$-
Enter the contract number to be
changed and click enter next
screen appears as

14. TRF-SURE-EU TRG Manual (TRF/P2P/1.2.3) – 004 Rev. 00
Page 14 of 17
Change the required fields as per TRF SBU requirement and save the document.
"#$#% . %%-
Note: here we can only view the information
Enter the contract number to be
displayed and click enter, next
screen appears as

15. TRF-SURE-EU TRG Manual (TRF/P2P/1.2.3) – 004 Rev. 00
Page 15 of 17

16. TRF-SURE-EU TRG Manual (TRF/P2P/1.2.3) – 004 Rev. 00
Page 16 of 17

17. TRF-SURE-EU TRG Manual (TRF/P2P/1.2.3) – 004 Rev. 00
Page 17 of 17