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Benefits of Sales Contract Management

The business process “Quote-to-Cash” is the main focus for typical Sales Contract Management. Generally, the main motivations for customers to implement sales contracts in their business are similar to procurement contracts: 

  • Companywide Contract Visibility across the value chain
  • Risk and Compliance Management especially to ensure contract compliance post execution
  • Accelerate Quote-2-Cash Process – increased time-to-value through automated workflows
  • Optimize through Integration – Integrate sales contracts with other systems such as ERP-SD, CRM
  • Increase Collaboration – collaborate internally and externally with customers and stakeholders on quotes and contract drafts

 

Sales contracts business process

Typically the business process can be viewed as a reverse source-to-contract business process with the following steps.

Business_process.jpg

Sales Contracts in CLM

Mapping the high level business process to the capabilities of SAP CLM, the realization could be executed in the following way.

  • Quotation: The quotation which is sent out to a customer is done in a different system than CLM. Typically this would be done in a CRM-system. After an initial negotiation, there will be a first contract draft for the customer.
  • Create Contract: The first contract draft will be done in CLM by creating a Master Agreement and the first draft of the contract document.
  • Negotiate Contract: The contract negotiation can be done inside CLM by using the Check-in / Check-out functionality in SAP CLM.
  • Approve Contract: After the initial negotiation, the contract can be moved via approval workflow to the next phase.
  • Create Sales Order: Move contract execution phase e.g. via SAP ERP-SD to create sales order
  • Monitor Contract: Track the key dates (Expiration date, renewal date etc.) in SAP CLM

The implementation of Sales Contracts has many different aspects which have to be considered. In upcoming blog posts, we will cover other topics like:

  • Implementation approaches
  • Security concepts
  • Integration aspects

Stay tuned….

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6 Comments

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  1. Victorino Mateluna

    Armin Fakouhi thank you very much, I need more information CLM integration with SD, CRM, etc.. When we have more information?

    Best Regards

    Victorino Mateluna

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    1. Armin Fakouhi Post author

      Hello Victorino,

      we are working on the next blog posts, they should be posted within the next weeks. In the meantime if you have specific questions re: CLM integration with SD and CRM, please post them via SCN.

      It should be added that there is not standard integration between CLM and SD or CRM, this would be a custom project.

      Hope this helps,

      Armin

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      1. Piyush Srivastava

        Hi Armin ,

        Nice blog I was looking for it since long , just one query , that can we make use of user defined business document instead of using master agreement for sale-based contract .

        Regards ,

        Piyush Srivastava

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  2. Sebastian Montero

    Hello Piyush Srivastava,

    I was testing what you said in your comment: to use a User Definced Biz Doc. I was testing with the number 5 and i found that the documents type, doesn’t include integration with the ERP system as the RFx and MA do. So what i was thinking was configure an additional MA type with the customizable tabs CLM has and set it as MA Sales, or something similar for the name. Any comment to my post is more than welcome.

    Best regards.

    (0) 
  3. B. Arendse

    Hello,

    I am interested what happened(or is happening) with the solution SAP CRM CLM sales and integration possibilities to SAP ECC SD since 2012? I know SAP has bought Ariba and also there it is not clear how the integration is foreseen for sales contract management. And in general information on how the sales contract management would work in SAP CLM or Ariba is not available with print screens or demos? I am looking for this because this all is available for the purchase contract management process but not for the sales contract process flow. And what about the strategy from SAP CLM or Ariba sales contract management integration? Is the idea to keep contract data in SAP CRM or Ariba only and create release orders in SAP ECC? And if so how would alerts for quantity contracts work? So in general can someone help me what is the vision on these products?

    Kind regards,

    Stefan Balogh

    (0) 

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