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Pre-Trading Contract

Pre-Trading Contract. SAP Best Practices. Purpose, Benefits, and Key Process Steps. Purpose

stanislaus-duscha
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Pre-Trading Contract

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  1. Pre-Trading Contract SAP Best Practices

  2. Purpose, Benefits, and Key Process Steps • Purpose • In general a Pre-Trading Contract can be used either as a Master Agreement with quantity update or as copy template carrying all necessary data. It is provided to store the data for pre-Sales/Purchase activities and long term contracts. • The creation of a Pre-Trading Contract is similar to the creation of a Trading Contract. The only difference is that for the Pre-Trading Contract, it is not possible to generate subsequent sales orders and purchase orders when the user saves the document. • Benefits • With a Pre-Trading Contract a master agreement can be settled in the system that receives quantity updates along the trading process. • In a Pre-Trading Contract it is possible to save all necessary data and they can be copied during a call-off. • Pre-Trading contracts can be used as a template or a sample contract • Key Process Steps • Create a Pre-Trading Contract (Master Agreement)

  3. Required SAP Applications and Company Roles • Required SAP Applications • Enhancement package 5 for SAP ERP 6.0 • Enterprise Extension for Global Trade Management • Company Roles • Trade Specialist • Trade Manager

  4. Detailed Process Description • Pre-Trading Contract • In this scenario a vendor offers selling goods in a special quantity for a special price during a long time frame (Master contract). • In parallel a customer wants to buy the same goods and wants to buy it for in a long period. • The trading specialist could matches the contract of the vendor (purchase contract) with the contract of the customer (sales contract). After the agreement of the trading partners for this deal a pre-trading contract can be created. • As both partners agreed on a direct shipment from the vendor directly to the customer, a two-sided pre-trading contract (B2B contract) for direct shipment could be created. • The trading manager has proved the contract and it could be released.

  5. Process Flow DiagramPre-Trading Contract Vendor Vendor offer Master agreement Pre Contract Document (Print out) Customer Customer Request Master Agreement Pre Contract Document (Print out) Trade Specialist Enters B2B pre contract Trade Manager Release Precontract TC for Drop shipment (412)

  6. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision

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