Purchasing Contract Configuration in Sap Mm

Purchasing Contract Configuration in SAP MM: A Guide

SAP MM (Materials Management) is a vital module in the SAP ERP (Enterprise Resource Planning) system that allows businesses to manage their procurement processes effectively. One of the critical functions of SAP MM is the Purchasing Contract Configuration, which helps businesses streamline their purchasing processes and optimize their supply chain management.

In this article, we will provide you with a comprehensive guide on the Purchasing Contract Configuration in SAP MM, its benefits, and the steps you need to follow to configure it.

What is Purchasing Contract Configuration in SAP MM?

A purchasing contract is an agreement between a business and a supplier to provide goods or services at pre-determined terms and conditions. The Purchasing Contract Configuration in SAP MM involves setting up the purchasing contracts in the system, defining the terms and conditions, and managing the documents related to them.

Benefits of Purchasing Contract Configuration in SAP MM

The Purchasing Contract Configuration in SAP MM offers several benefits, including:

1. Streamlined Procurement Process: The configuration of purchasing contracts enables businesses to streamline their procurement processes and ensure efficient procurement of goods and services.

2. Improved Vendor Relationship: By setting up purchasing contracts, businesses can establish a long-term relationship with their vendors, negotiate the pricing and terms, and ensure a stable supply chain.

3. Increased Cost Savings: By defining the pricing and terms in a purchasing contract, businesses can ensure cost savings and reduce the risk of price fluctuations.

4. Automated Procurement Process: The SAP MM system automates the procurement process by generating purchase orders, invoices, and other documents automatically, saving time and reducing errors.

Steps to Configure Purchasing Contracts in SAP MM

To configure purchasing contracts in SAP MM, follow these steps:

Step 1: Define Contract Type

The first step is to define the contract type, which includes the terms and conditions, pricing, and other parameters required for the procurement process.

Step 2: Maintain Validity Period

Next, you need to set up the validity period of the contract, specifying the start and end dates. You can also define the renewal period if required.

Step 3: Assign Document Types

In this step, you need to assign document types such as purchase orders, invoices, and delivery notes to the contract.

Step 4: Maintain Partner Functions

The next step is to maintain the partner functions, which define the roles of individual partners involved in the procurement process, such as the buyer, supplier, and the approving authority.

Step 5: Define Release Strategies

Release strategies enable businesses to define the approval process for purchasing contracts. In this step, you need to define the release strategies based on the contract value, type, and other parameters.

Step 6: Create Contracts

Finally, you need to create the purchasing contracts by entering the relevant information such as the contract number, vendor details, pricing, and terms.


The Purchasing Contract Configuration in SAP MM is a critical function that allows businesses to streamline their procurement processes, optimize their supply chain management, and increase cost savings. By following the steps mentioned above, you can successfully configure purchasing contracts in SAP MM and achieve operational efficiency in your procurement process.

Scroll to Top