Purchase Contract (BMD)

Purchase Contract (BMD)

Quantity contracts are agreements for a company to order a certain quantity of a product during a specified period. In source determination, contracts replace the purchasing information records and can be assigned in the source list as the fixed source for MRP.

Target groups are purchasing managers as well as buyers. If purchase requisitions and purchase orders do not yet exist, they are created after the contract. You can check the released purchase orders that are referenced to a contract by monitoring the contract.

Key Process Steps Covered

  • Create a purchase contract
  • Make mass changes to purchase contracts
  • Approve purchase contract
  • Monitor notification (optional)
  • Manage source lists
  • Create a purchase requisition
  • Assign requisition and creating purchase order
  • Find purchase documents by requirement tracking number
  • Approve purchase orders
  • Monitor contract item (optional)
  • Post goods receipt
  • Create supplier invoice

Benefits

  • Reduce procurement costs
  • Secure supplies
  • Maintain transparency of supplier agreements

Where is Purchase Contract(BMD) being used?

This Scope item is used in the following way:

  • As a management function of Sourcing and Contract Management within Sourcing and Procurement Scope Item Group

Process flow of Purchase Contract (BMD)

Find below the process flow of the scope item Purchase Contract as it is defined for release s4h-2021.


Download Process Flow of Best Practice scenario Purchase Contract (BMD) - S/4HANA OP
Ref: Sourcing and Procurement of SAP S4H-2021
Best Practices related to S/4HANA*1) Yearly Updates are released per September of each year
*2) The Quarterly updates are released per Februari, May, August and November
Details of future releases can be found in the SAP Roadmap section of each product. Go to SAP Roadmap Product Finder.
Knowledge Center Scheer Nederland | The Process Experts Visit also the SAP Cloud ERP knowledge center of Scheer Netherlands. The following topics are covered:
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