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Contract Management and Contract Compliance understanding the terminology repeat name. CRW vs CR, Contract Terms vs. CR and Contract. |
Contract is utilized in many places in SAP Ariba, can you explain the different meaning or applications?
What is a Contract:
A Contract is an agreement that identifies terms for purchasing goods and services repeatedly over time, generally includes pricing, estimated or maximum total cost, discounts, and a time period.
In SAP Ariba solutions there are different projects used to request, manage, review, negotiate, approve and house the contract.
In SAP Ariba Contract Management, a Contract Request (CRW) may be used to initiate the contracting process. This is a project type that has may include the reason for a new contract, details of the engagement, tasks and approvals. The Contract Workspace (CW) is an SAP Ariba project used for creating or storing legal contracts and includes information about the contract, contract documents and project team members. The project may contain tasks that are required to create the contract, negotiate and obtain various approvals.
Additionally, customers with SAP Ariba Buying Solutions may wish to use the Contract Compliance.
What is Contract Compliance?
To initiate a Contract Compliance Contract from a Contract Workspace (CW) users create the Contract Terms which initiates a Contract Request (CR) in SAP Ariba Buying. Customers who have SAP Ariba Buying only can initiate the Contract Request (CR) directly from the create menu. The request contains the pricing terms, price limits and other details to enforce Compliance. The Contract Terms/Contract Request (CR) can have its own approval flow in the Approval Processes within SAP Ariba Buying.
No matter how Contract Compliance is initiated, once the Contract Request (CR) is submitted and approved the Contract (C), which is your Contract Compliance Contract is created in your SAP Ariba Buying solution. The Contract Compliance Contract (C) can then be used to invoice against when no release is required or used to determine pricing for requisitions when a release is required.
Contract Management and Contract Compliance can be overwhelming when used together, understanding the SAP Ariba terminology and how it matches to your internal business terminology can be the first step to providing the right information for users. Taking the time to define not only how you want to use the tools in SAP Ariba, but also how the terms apply for business user, will help alleviate confusion.
The following recorded webinars provide additional details to understand the Contract Workspace and Contract Compliance in your SAP Ariba Solutions:
Creating and Managing a Contract Workspace
Intro to SAP Ariba Contract Compliance | Contract Compliance Webcast Series, Part 1
Contract Workspaces for Procurement | Contract Compliance Webcast Series, Part 2 of 4
Contract Terms | Contract Compliance Webcast Series, Part 3 of 4
Building Your Contract for SAP Ariba Contract Compliance
SAP Ariba Buying & Invoicing: Contract Compliance in Action
Additional webinars for other contract related topics:
SAP Ariba Contracts: Amendments and Amendment Methods
Overview of Contract Line Item Documents (CLID)
SAP Contract Compliance: Combined Spend
SAP Ariba Sourcing: Creating a Contract from a Sourcing Award
