ECC Contract Hierarchy

Question

Hi,
How best can we use Contract Hierarchy in ECC 6.0 ?
Has anybody mapped this process?
Please share your inputs.
Thanks in advance.
Regards,
Anil Rajpal

Answer 1

dear Anil
we can Map contract hierachy in ecc6.0 there is not much diffrance in previous version and new version of sap for contract herachy , we have upgraded our system from 4.7 to 6.0 , and have seen the mapping ...
for example 
1.) Distributed Contracts :
In the SAP system of the "Metal Corporation" in Pittsburgh, a contract for 10,000 tons of "steel 1" is created without specification of a plant under the agreement type "VK" (distributed contracts).
The company has a plant in Minneapolis, another one in Atlanta, and a subsidiary, "Southern Metal Co.", in Houston. The latter represents a separate company code. The Metal Corporation is the central system, the Minneapolis plant is local system no. 1, the Atlanta plant is local system no. 2, and the subsidiary (Southern Steel) is local system no. 3
The central SAP system makes the contract available to the local systems, that is to say, it distributes it to enable the latter to procure material "steel 1" by issuing contract release orders. The contract is transmitted to the local systems by means of an intermediate document (IDoc) via ALE, and is imported into each individual system.
The Minneapolis plant (local system 1), issues a release order for 2,000 tons of steel 1 against the contract. After this, the quantity that can still be released against the contract is 8,000 tons.
This information must be passed on to the central system. For this purpose, an IDoc is transmitted to the central system, causing the release order documentation there to be updated. At the same time, the release order documentation is updated in the local system that issued the release order (quantity released: 2,000 tons).
The Atlanta plant creates the next contract release order for 1,000 tons. As a result, the release order documentation is updated both centrally (quantity released according to Pittsburgh documentation: 3,000 tons) and locally (quantity released according to Atlanta documentation: 1,000 tons).
The release order documentation in the local systems is limited to the relevant entity's own release orders. Only in the central system is data on all release orders consolidated in collective release order documentation.
This means that the central system has control over the degree of fulfillment of the contract.
As soon as the complete quantity has been released against the contract, the blocking indicator is set in the central system, thus preventing the creation of any further release orders.
The subsidiary (which represents a separate company code) can issue release orders against the central contract in the same way as the plants, provided that it uses its own purchasing organization with the appropriate company code assignment in doing so.
2.) Centrally Agreed Contract
It is possible to create contracts that do not relate to just one particular receiving plant. In this case, a centrally agreed contract is created without specification of a plant. The plant is not specified until a contract release order is created.
You can maintain different conditions for individual plants in the central contract or different ordering addresses or goods suppliers in the vendor master record, for example.
An enterprise with a central purchasing department (= Reference Purchasing Organization) buying materials for several plants can agree a high-level contract which may apply to a vendor's entire corporate group and which can be utilized by other purchasing organizations within the enterprise. The use of such centrally agreed contracts usually results in more favorable conditions of purchase. (Outside SAP, such contracts may also be referred to as "national", "group", or "corporate" contracts.)
A centrally agreed contract is involved if:
A single purchasing organization procures for an entire corporate group, or
A reference purchasing organization makes a contract available to other associated purchasing organizations, enabling the latter to issue release orders against this contract
for example
Vendors may assume different roles (partner roles) in the procurement process. Partner roles (sometimes also referred to as "partner functions") include the roles of "ordering address", "goods supplier", and "invoicing party".
The partners you can store in the vendor master record in the Partner Roles view apply to a certain purchasing organization.
In addition to the partners that are valid at purchasing organization level, you can maintain different partners for individual plants or vendor sub-ranges. In this case, the system will determine a different ordering address in a purchase order for your Atlanta plant than the one determined in a purchase order for your Minneapolis plant, for example.
Two individual vendors belonging to the vendor corporate group X supply receiving plants in different regions. In the vendor master record, the receiving plants have been assigned as follows: vendor X2 supplies plant 0001 only, and vendor X3 plant 0002 only.
If a buyer wishes to release material 4711 against the centrally agreed contract with vendor corporate group X, he or she enters the key for the plant for which the material is to be procured.
If he or she enters plant 0001, the system determines vendor X2 as the ordering address on the basis of the assignment in the vendor master record.
If he or she enters plant 0002, the system determines vendor X2 as the ordering address on the basis of the assignment in the vendor master record.
You can also assign several partners with the same role to a plant (e.g. two ordering addresses). When you create the release order, you are then asked to decide on one of them.
reward points if helpful
thanks and regards
ravikant dewangan