What is ERP central contract in SAP MM-PUR - Purchasing?

SAP Term: ERP central contract

• Component: MM-PUR

• Component Name: Purchasing

• Description: A contract negotiated by a purchasing organization for an entire corporate group represented by a "client" in the SAP system. Such corporate contracts enable more favorable conditions to be obtained through bulk buying than if individual organizational units within the group enter separate contracts. A centrally agreed contract is involved if: One single purchasing organization procures for an entire corporate group. A reference purchasing organization makes a contract available to other purchasing organizations linked to it, so that the latter can issue release orders against that contract.

Smart SAP Assistant

• Key Concepts: 
  ERP Central Contract (ECC) is a purchasing tool in SAP's Materials Management (MM-PUR) module. It is used to manage and monitor contracts between a company and its suppliers. It allows companies to create, manage, and monitor contracts with suppliers, as well as track the performance of those contracts. 
  
  How to use it: 
  ECC can be used to create and manage contracts with suppliers. It allows users to define the terms of the contract, such as payment terms, delivery dates, and other conditions. It also allows users to track the performance of the contract, such as delivery times and payment status. 
  
  Tips & Tricks: 
  When creating a contract with a supplier, it is important to ensure that all terms are clearly defined and agreed upon. This will help ensure that both parties are aware of their obligations and can avoid any misunderstandings or disputes. Additionally, it is important to regularly review the performance of the contract to ensure that it is meeting expectations. 
  
  Related Information: 
  For more information on ERP Central Contract, please refer to SAP's official documentation on Materials Management (MM-PUR). Additionally, there are many online resources available that provide tutorials and tips on how to use ECC effectively.