17/05/2016 ContractManagementSolution(basedonFolders...

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ContractManagementSolution(basedon Version1

FoldersManagement)
createdbyAntonKozhinonMar20,201610:39PM,lastmodifiedbyAntonKozhinonMar26,20164:25PM

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IntroductiontoContractManagementSolutioninSAPERP
WhyContractManagement?
ContractManagementLifecycle
Initiation
Approval
Negotiation
ExecutionandMaintenance
RenewalandTermination
UserInterfaceandTransactions
Workplace
Contractinterface
Contractfunctions
Contractattributes
Contractssubcomponents
LibraryofApprovalRoutes
SAPBusinessWorkplace
Reports.ContractsRegistry
HowareContractslinkedwithotherERPobjects?

IntroductiontoContractManagementSolutioninSAP
ERP
ThisDocumentdescribestheContractManagementSolutioninSAPERPbasedonNetweaverFolderManagement
modulecreatedbyateamofFITCONLLC(Russia,Moscow).

WhyContractManagement?
Evenintodaysdigitalage,legallybindingcontractsbetweenbusinessentitiesusuallyareinpaper,require
approvals,signaturesandrepresentvalue.Theyhaveperiodsofvalidities,requireexplicitactionforrenewalsor
cancellationsusuallywithathoughtgivenaheadoftimeofaction.Itisallaboutcompliance!
SAPstorescontractsrelatedtothevariousbusinessprocesseswithintheirspecificmodules:SD,MM,REFXorwith
financialtransactions,inTRM.Theyaredisparateinthesenseof:ThereisnocentralregistryforcontractswithinSAP
contractsareislandsofinformation.
Asaconclusion:
ThereisnounifiedContractobjectinSAPERPonecannothaveanallcontractsregistryinareporttoaction
on.
TherearedifferentuserinterfacesofobjectsrelatedtoContractsinSAPERPmodulesusershavetolearnto
workwithdifferentinterfaces,screensanddata.
Therearenonunifiedapproachestocontractsdatamanagementandcontractsapprovaleverybusiness
process(MMorSD)hasdifferentchecksandstepstotake.Manystepsareneededtobeprogrammedthereis
nocommonworkflowforapproval.
Oursolutionisdifferent.Ittakesintoconsideration,thatcontractsshouldbemanagedcentrallyandinaccordancewith
recordsmanagementrequirements:
AoneunifiedObjectinSAPERPforContractsdatathatislinkedtorelevantobjectsinotherSAPERPmodules
helpingtosupportstandardfunctionalityandbusinessprocesses.Itwillprovidethepossibilityofbuilding
necessaryReportsonContractsbasedononeObject,wherecontractdataisstoredinoneplaceindatabase.
AunifieduserinterfaceforthisnewContractobjectallowinguserswillworkinasimpleandcoherentuser

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friendlyinterfacewhichdoesntdifferinagreatwaydependingonthekindofbusinessprocess.
ApreconfiguredfunctionalitytocoverallneedsofbasicstepsofContractManagementbusinessprocess:
Initiation
Approval
Negotiation
ExecutionandMaintenance
RenewalandTermination
Asolutionthatprovidesthefollowingpossibilities:
Easycustomizingofpredefinedchecksandfunctions
Easyextendingandsettingupadhocchecksandfunctions
ControlofContractinterface,functionsandchecksavailableaccordingto:
Contracttype
Contractstatus
UserauthoritiesinSAPERPSystem.
FlexibleworkflowwithallnecessarypossibilitiesofcommonWorkflowandDocumentManagement
Solutions.
TightintegrationwithstandardSAPERPObjectsandprocessesrelatedtoContractManagement.
Centralizedstorageandorganizationaccordingtotheprinciplesofmanagingrecords.

Figure1.ExampleofUser'sWorkspace:aMenuontheleft,aContractCardinViewMode(showinglinked
documents)

Figure2.LinkedSAPERPdocumentsforaContract:PurchaseOrder,InvoiceandPayment

FITCONhasbuilt,implementedandenhancedthissolutionoverthepasttenyears.Itissoundandstable,inspiredby
businessrequirementsandtailoredtomeetthem.SuccessfulimplementationswithclientsinRussia,suchas

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Transneft,Sberbank,Bashneft,IESHoldingareaproventrackrecord.

ContractManagementLifecycle
SchemeoftypicalcontractlifecyclewhichiscoveredinourSolutionisfollowing:

Initiation
BasictasksontheInitiationstageinclude:
CreatingaContractcardwithrelevantdata
PreparationofContractdraftinMSWord
PreparationofotherrelevantadditionsforaContract:
Specificationofmaterialsorservices
Pricelists,etc.

AswewantinourSolutiontocloselyintegrateContractswithotherSAPERPObjects,wesuggestalsotocreateMMor
SDobjectslikePurchaseOrdersorClientordersatthisstage.Whatismoreimportant,wesuggesttocreatethese
objectsrightfromaContractcard,sosomedata(likeBusinessPartner,datesofvalidity,typesofcontract)couldbe
copiedtorelevantSAPERPObject.Alsooneoftheresultsofthisoperationisaconnectionbetween,forexample,a
PurchaseOrderandaContract.

Approval
Wheneverythingisready,itstimetodeterminearouteofContractapprovalandstartaworkflow.Wethinkthatits
moreconvenientnotjusttoenterarouteaccordingtosomemanuals,buttodetermineitautomaticallybylookingup
somekeydatainourContractcard(seeLibraryofApprovalRoutessection).

Butbeforestartingworkflowwestillhavesomethingstocheck.Basically,itssomethinglike:
AreallnecessarydocumentsattachedtoaContractcard?
DoesApprovalroutecomplytoContractdata?
AreallofapprovalparticipantsdeterminedcorrectlyandexistandactiveinSAPERPsystem?
OurSolutionhasanabilitytocustomizeandextendthesechecksbysimplyimplementingandsettingupYourown
checks.Anditssimpleasitsounds:YoucodeYourownchecksusingourtemplateforchecksandsetupinour
settings,whichareprovidedwiththeSolution.
Also,itisworthmentioningthataswehaveaPurchaseOrder(PO)linkedtoourContract,assoonasweseta
ContractsstatustoaOnapprovalvalue,aPOstatusshouldbechangedtoo.Andwedoitautomaticallyweblock
POsoitisimpossibletochangeitsdataduringtheapprovalprocess.Formakingchangesifnecessary,aContract

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CardshouldbesentbackonrevisiontoaresponsibleUser.NewstatusOnrevisionalsoautomaticallyopensupa
linkedPOforchanges.

Negotiation
SomestepsofContractLifecyclearestillmoreoftentobecarriedoutnotinSAPERPsystem,butinthemostcommon
wayusingEmailanddeliveryservices.OneofthesestepsistheNegotiationstagewhichincludesfollowingtasks:
PrintingYourapprovedversionofaContractfromSAPERPsystem.
GettingitsignedinYourCompanyandbyYourBusinessPartner.
GettingitregisteredinLegalDepartment(orDepartmentthatisresponsibleforallocationofregistrationnumber
toaContract).
ScanningYourContractandattachingittoaContractCard.

Nevertheless,thisactionscanalsobecarriedoutfromSAPERPifthereisanintegratedEDIsolution(inthiscase,
ContractDatawillberepresentedbyaXMLfileandaContractwillbesigneddigitally).
SpeakingofourlinkedPurchaseOrder(PO),attheverymomentwhenstatusofourContractwillbecomeSignedor
RegisteredourPOwillbereleasedautomatically.

ExecutionandMaintenance
ExecutionstageconsistsofoperationswhicharecarriedoutduringstepsofcommonbusinessprocessesinMM,SD
orFI:
Incoming/Outgoingdelivery
Incoming/Outgoinginvoices
Downrequestpayments,requestpayments
Bankstatements
WhatisdifferentaswehaveSAPERPObjectslinkedwithoutContractCard,alltheseoperationscanbeseenina
ContractCardasanewlinkedobjectsorasaspecialincontractreportaboutincomingdeliveriesoroutgoing
payments.ItsallwasmadepossibleviaextensionswhichwehavemadeinOpenFIandMM,SD.
AsapartofContractMaintenance,wehavedonesuchthingsas:
AutomaticnotificationsaboutContractdatesofvaliditysoUsergetsnotifiedwhenitslessthanamonthleft
(customizable)
FunctionsforchangingaresponsibleUserinaContract(duetoUsersleaveordismissal).
AndasIhavementionedbefore,allthisstuffcanbeextendedbyYourownfunctionsandchecksusingadhocsettings
inourSolution.

RenewalandTermination
WehavedecidedtohavetwopreconfiguredapproachesofcarryingoutoperationsofContractsRenewalor
Termination:
Aneasyonejustswitchingstatusesandenteringrelevantdata(newdates,reasonsofTermination,etc.)
Acomplexonehavingawholeprocedurewithworkflowinside.
InthisdocumentIwillcoveronlyacomplexapproach.Accordingtothisapproach,aUser,responsibleforaContract
termination,forexample,hastocreateanewCardfromaContractcardwhichiscalledRequestforapproval(or
simply,Request).
ThisCardlooksalmostlikeaContractCard,butofcourse,theyaredifferentinattributes.TheattributelistofaRequest
ismuchsmallerandconsistsonlyoffollowingattributes:
LinkedContractid(filledautomatically)
TypeofRequest(Termination,Renewal)
DateofRequest
ResponsibleforRequest
CompanyCode(ifnecessary,copiedfromaContractCard)
ThentheprocessisalmostsimilartoaContractapproval:
AnapprovalrouteshouldbeautomaticallydefinedbymeansofaRequeststype.
RelevantdocumentsshouldbeattachedtoaRequestCard.
Somechecksshouldbecarriedoutbeforestartingworkflow.

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WhenallresponsibleparticipantsmakeuptheirmindswithnecessarydecisionsandenterthemintheRequestCard,
thestateoftheRequestcardwillbechanged(respectivelytothedecisionsmade):
IftheRequestissubmitted,thenitsstatuswillbechangedtoSubmittedandrelevantchangeswilloccurinour
linkedContractCard.Aswelookedthroughtheprocessoftermination,thenContractsstatuswillbecome
TerminatedandalllikedSAPERPObjectslikePurchaseorderwillbeblockedforfurtherprocessing.
IftheRequestisdenied,theitsstatuswillbechangedtoDeniedandnothingreallychangesinourContract
Card.
Nevertheless,inbothcases,allrelevantUsersarenotifiedaboutthefinalresolutiononoutRequest.

UserInterfaceandTransactions

Workplace
AstheContractManagementsolutionisbasedonSAPFoldersManagementmodule,themainusertransactionis
SCASEPSanditlookslikethis:

ThisisamainworkplaceforaUser,responsibleforContractManagement.Herehecanexecutefollowing
functions:
SearchforaContract
CreateaNewContract
EditaContract
EditandViewrecentlymanagedContracts

Contractinterface
AContractisacard(orcase)inSAPERPwhichlookslikethis:

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Acardhasfollowingelements,whichwillbedescribedfurther:
Functionsatoolbaratthetopofthecardwherevariousfunctionsareplaced.ThisfunctionsallowUsersto
undertakecertainactionsaccordingtoabusinessprocessflow.Forexample,aUsercancreateaPurchase
OrderforanewContractorinitiateaprocessofContractrenewal.

Attributesatreeofattributesisdisplayedinthemiddlesectionsofthecard.Itgivesabriefoverviewofkey
attributesofaContract.Forattributesmaintenancethereisanadhocfunctionwhichwillbedescribedinsection
Contractattributes.

SubcomponentsatoolbaratthebottomofthecardiscalledToolbarofSubcomponents.Asubcomponentisa
TabwhichholdsadditionaldatarelatedtoContractwhichisimpossibleorunreasonabletosaveasattributesin
thecard.

Contractfunctions
ContractfunctionsaretheactionsavailabledependingonacurrentstateofaContract.Theseactionscanbecarried
outbyaUser(ifhehasnecessaryauthorities).Forexample:
FunctionsrelatedtoSAPERPObjects:
CreatealinkedPurchaseOrder
CreatealinkedClientOrder
CreateaFinancialTransaction
CreateaRealEstateContract,etc.
FunctionsrelatedtoContractManagement:
CreateanAppendixforasignedContract.
InitiateContractRenewalorContractTermination.
ShowContractsRegistryandmanymore.

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InourSolutionthisactionsaredependentoncurrentstateofaContractcardandUsersauthoritieshencesome
buttonsaremadeinvisibletoaUser.Asanexample,theFunctionCreateanAppendixisavailableonatoolbaronly
ifaContractCardhasthestatusSignedorRegistered,ortheFunctionInitiateContractRenewalisvisibleonlyto
UserwhohastherightsofperformingfurtheractivitiesfortheContract.
Inordertoavoidabulkyinterface,manyfunctionsareorganizedasseparateMenuButtonslikeActions,Decisions
andsoon.ItsastandardfunctionalityofNWFMmoduleofSAPERP.

Contractattributes
ContractAttributeshavetwoviewingoptions:
Asatree:

Asadialogscreen:

ToopenattributesinScreenmodeonecanusetheFunctionShowAttributes,locatedonthetoolbaroffunctions.All
attributesthatrepresentcontractdataaregroupedandorganizedbytabs:
MainDataabasicContractdatalikedates,systemandcontractids,companycode,contractclassificationdata.
PartneradataaboutPartner(CustomerorVendor)andhisBankdetails.
HomeBankDetailsadataabouthomebankaccountforaContract.
Amounts&CurrenciesadataaboutcurrenciesofaContract,amounts,taxes.
ResponsibleEmployeesadataaboutuserandhisdepartmentthatareresponsibleforaContract
maintenance.
TermsatermsofpaymentsforaContract.
TemplatesadataabouttemplatesforpreparationofadraftforaContract(anotheroursolutionprovides
TemplatecardandsettingsforcreatingaMSWorddocumentfromContractcarddata).
StatusadataaboutcurrentstatusofaContractinsystem(andswitchesthatblockoperationsinrelatedSAP
ERPobjects).
TechnicaldatatechnicaldataaboutaContractcarddateofcreationandwhenitwaslastmodified,who
createdandwhomodified,etc.).
Somemoredetailsaboutattributes:
Eachattributehasadescriptiontext,whichisshownontherightssideandisrecalculatedafterUserhitsEnter.
EachattributevisibilityislinkedtoContracttype,statusandUserauthority(adhocsettingiscreatedtoprovide
thisbehavior).Sooneattributecanbe:
mandatorywhenaContractiscreated
visiblewhenContractissigned
hiddenwhenContracttypedoesntrequireittobefilledin.
EachattributehasitsownSearchHelp.

Contractssubcomponents
ASubcomponentisanadditionalTabinContractwhichisusedtoshowormaintainsomeadditionaldataforthe

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Contract.Forexample:
LinkedObjectsalinkstoSAPERPobjects(likePurchaseOrder,Invoices,etc.)relatedtoaContract.
DocumentsalinkstodocumentswhichwereattachedtoaContractbyaUser:draftofcontract,scannedcopy
ofsignedcontract,otherdocuments.
ScheduleofPaymentalistofpaymentswhicharetobecarriedoutaccordingtothetermsofContract.Thislist
hasdataaboutpaymentstypes,dates,amounts,currencies,budgetaddresses(commitmentitems,funds
centers).
SpecificationalistofitemsfromPurchaseOrderorSalesOrder.ThisdatahelpsUsertoviewwhattheContract
isreallyabout.
RouteofApprovalarouteofcontractapproval,whichconsistsofsequentialandparallelsteps.
LoghistoryofchangesmadeinContractbyUsersinsystem.

LibraryofApprovalRoutes
Itsobviousthateverycontracthasitsownapprovalroutedependingonitstermsandadditionalclauses.Forexample,
approvalofacontractwithgreatvalue(>>1mil.USD)requirestopmanagementresolution,orapprovalofacontract
withnewVendorrequiressecuritychecksandresolutionsfromsecurityoffice.
Inordertoavoidmanualconstructionofapprovalrouteforeachnewcontractwehavecomeupwithideaofhavinga
wholeLibraryofApprovalRoutes,whereroutescouldbemaintainedandassignedtoeachbusinesscaseaccording
toaspecialkeyattributes.
ThetransactionformaintainingtheLibrarylookslikethis:

Inthetopwehavealistofroutesandtheirbasicdata(includingheadingtextandkeyattributes).Inthebottomwe
haveanoverviewofoneoftheroutes(asitlookslikeinContractandhowworkflowgoesduringApprovalstage).
SelectionofrouteinContractiscarriedoutinsubcomponentRouteOfApprovalbypressingbuttonLoadTemplate:

IfthesystemisunabletodeterminetheonlyonerouteofapprovalforcurrentContract(accordingtoitsdata)thenthe
systemwillshowalistofpossibleroutes,thataretheclosestmatch.

SAPBusinessWorkplace
ThisstandardUsertransactionisusedforContractApproval.HereUsercanoverviewhowmanyapprovaltaskshe
hasandcanalsoexecutethem:

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ExecutionoftaskopensaContractcardwithnewfunctionavailableUserResolution,whichisusertoApproveor
Rejectdocument.

AparticipantofContractApprovalcantrejectadocumentwithoutcreatinganotewithreasonsofhisresolution.
EachresolutionandcreatednoteswillbedisplayedinSubcomponentPath:

Also,inthisSubcomponentuserwillseeahistoryofapprovalasthisprocess,incommon,canhavemanyiterations
andsystemssavesdetailsofeachiteration.Soitspossibletoviewparticipantsandtheirresolutionsoneveryroundof
approval.

Reports.ContractsRegistry
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TransactionSCASEPSisaquiteconvenientplacetomanageandmaintainContractsinSAPERP,butallweknow,
thatmanyotherERPusersarealsointerestedinviewingcontractsdata.So,wehavecreatedatransactionforsuch
userscalledContractsRegistry,whichallowedthemtoselectandviewContractsaccordingtotheirauthorizationsin
ERPsystem.
ThistransactionhasawiderangeofselectioncriteriatosearchforContractsinthesystemanditshowsresultsofthe
searchasalistofmatchedContracts.
Searchcriteria:

Listofresults:

AUsercandrilldownintoselectedContractandviewitasifhewasinSCASEPS.
ForsomeprojectsContractsRegistry,ofcourse,hadsomeextensions.Forexample,ithadFavoritesListsorevenwas
usedasanentrypointforContractsonthetoolbarofthetransactionafewbuttonswereplaced:
CreateaNewContract
EditaselectedContract
ViewaselectedContract
CreateaNewAppendixforContract
UserusedthistransactionashismainworkplacetomanageandmaintainContractshewasresponsiblefor.

HowareContractslinkedwithotherERPobjects?
ItsessentialforanERPsystemtohaveprocessesandallobjectswithinthisprocessestobelinkedtoeachother.For
example,aPurchaseOrderislinkedwithInvoiceandInvoiceisLinkedtoaPayment.Contractistheobject,which
couldbeusedtoconsolidatealldataexistingwithinERPsystemandrelatedtoaparticularcontract:orders,deliveries,
invoices,requestsforpayment,payments.Inordertoprovidethisapproach,aContractfromFoldersManagementhas
tobelinkedwithotherERPobjects.

Table1.ListofSAPERPbusinessobjectslinkedtoContracts

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SAPERPObject TypeofLink Comment

PurchaseOrder Documents,DataandStatus ThislinkisusedtointegrateContract

ManagementSolutionwithProcurement.
Availableactions:
CreatePurchaseOrderfromContract
BlockPOwhenContractisonapproval
ReleasePOwhenContractissigned
FurtheroperationslikeInboundDelivery,
IncomingInvoicePostingarepossibleonly
aftertheContractissigned.

SalesOrder Documents,DataandStatus ThislinkisusedtointegrateContract

ManagementSolutionwithSales.Available
actions:
CreateSalesOrderfromContract
BlockSOwhenContractisonapproval
ReleaseSOwhenContractissigned
Allfurtheroperationsarepossibleonlyafter
theContractissigned.

FinancialTransaction Documents,DataandStatus ThislinkisusedtointegrateContract

ManagementSolutionwithLoans,Credits,
Deposits.Availableactions:
CreateFinancialTransactionfromContract
BlockFTwhenContractisonapproval
SettleFTafterContractissigned
Allfurtheroperationsarepossibleonlyafter
theContractissigned.

FundsReservations Documentsonly ThislinkisusedtoprovideContract

ManagementSolutionwithpossibilityof
maintainingpaymentschedulesforcontracts
andcarryingoutbudgetcontrol.

AccountsPayable Documentsonly ThislinkisusedinContractManagement

Solutiontoconsolidateallaccounting
documentsforContractandtoanalyzethe
executionofaContract.
UsingOpenFIEventstolinkaccounting
documentsduringpostingonairandto
unlinkdocumentsduringreversal.

AccountsReceivable Documentsonly ThislinkisusedinContractManagement

Solutiontoconsolidateallaccounting
documentsforContractandtoanalyzethe
executionofaContract.
UsingOpenFIEventstolinkaccounting
documentsduringpostingonairandto
unlinkdocumentsduringreversal..

ItsworthmentioningthateverySAPobjectfromthetableabovehasadditionalGenericObjectServicesto:
DrilldownintoContractCard
ViewContractattachments(linkeddocuments).
ItsalsopossibletochangethemasterorprimaryobjectandstartcreatingContractCardsfromSAPobjects(for
example,fromPurchaseOrder)itdependsonspecificrequirementsanddemandsofbusinessprocess.

P.S.IfYouwantsomemoredetailsorhaveanyquestions,feelfreetoaskme.

305Views
Topics:enterprise_content_managementTags:contract_management,case_management,scase,
public_sector_records_management,sap_netweaver_folder_management,scaseps

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17/05/2016 ContractManagementSolution(basedonFolders...|SCN
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PragyaPandeMar29,20166:04AM

goodread

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AntonKozhinMar29,20169:37AM(inresponsetoPragyaPande)

Thanks!
HopeYoulikedit!

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