Procurement compliance is a crucial part of any company’s risk management and ensures that suppliers, buyers, and employees adhere to the contract terms.
Contract Compliance is a set of features and functions incorporated into SAP Ariba Procurement and SAP Ariba Strategic Sourcing solutions that allow companies to enforce compliance to contracts as part of the transactional activity that occurs in the system.
Contract Compliance offers the following benefits:
The solution supports the following four levels of purchasing contracts:
|Supplier||all products from the supplier|
|Catalog||all products from a catalog|
|Commodity||all products identified by specific commodity codes from a supplier|
|Item||only specific items from a supplier|
When users create contracts, they decide when the contract terms are applied. They can be applied when users create orders, invoices, or receipts as follows:
SAP Ariba Procurement approval processes contain predefined contract-related requisition approval rules, e. g. a requisition can be auto-approved if all the items are covered by a contract.
Milestones capability can be used to receive against contracts. Milestones are a set of key conditions that must be met by a supplier to achieve the terms of the contract and the supplier invoice could be processed.
Contract Compliance is a set of features integrated into SAP Ariba Procurement and SAP Ariba Strategic Sourcing, not a single product or a standalone SAP Ariba module.
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Read more about the solutions in Supplier Management line of business.SAP Ariba Procurement SAP SRM SAP S/4HANA for Central Procurement