Contract for Central Procurement with SAP Ariba Contracts (4B0)

Contract for Central Procurement with SAP Ariba Contracts (4B0)

In this scope item, you can integrate value and quantity contracts. These are agreements for a company to order certain quantities of products during a specified period. In SAP Ariba Contracts, users can negotiate prices for goods and lean services to be procured, and they can sign a legally binding contract with a supplier. Pricing details are passed on from SAP Ariba Contracts to the operational system, so that operational purchasers can use these prices to buy goods or services as required. 

Central procurement offers a centralized contract process across industries with a deep integration into the customer's landscape. It connects SAP Ariba Contracts to the customer’s ERP or SAP S/4HANA Cloud systems, and exchanges business documents to ensure end-to-end business processes into finance and logistics that run in the connected systems.

Key Process Steps Covered

  • Create contract in SAP Ariba Contracts
  • Set up and review contract terms
  • Approve contract
  • Send contract to SAP S/4HANA Cloud
  • Create operational purchase contract automatically
  • Approve and release operational purchase contract automatically
  • Use operational purchase contract as source of supply
  • Create purchase order against operational purchase contract

Benefits

  • Manage purchase contracts for materials and lean services
  • Automate and accelerate the contract lifecycle
  • Standardize and control contract development
  • Minimize effort for tracking and administration of contracts
  • Optimize the value of contracts by supporting full-scale reporting
  • Strengthen operational, contractual, and regulatory compliance
  • Reduce TCO significantly for procurement departments through centralized process

Additional Information

  • This scope item requires an additional SAP S/4HANA Cloud license

Software Products

  • SAP S/4HANA Cloud
  • SAP Ariba Contracts
  • SAP Ariba Cloud Integration Gateway
  • SAP S/4HANA or ERP (Central Procurement)

Where is Contract for Central Procurement with SAP Ariba Contracts(4B0) being used?

This Scope item is used in the following way:

  • As a core function of Central Procurement within Sourcing and Procurement Scope Item Group

Process flow of Contract for Central Procurement with SAP Ariba Contracts (4B0)

Find below the process flow of the scope item Contract for Central Procurement with SAP Ariba Contracts as it is defined for release s4hc-2111.


Download Process Flow of Best Practice scenario Contract for Central Procurement with SAP Ariba Contracts (4B0) - S/4HANA Cloud
Ref: Sourcing and Procurement of SAP S4HC-2111
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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