2080726 - Cost and Profit Margin in a Contract are not as Expected.

SAP Knowledge Base Article - Public

2080726 - Cost and Profit Margin in a Contract are not as Expected.

Symptom

The costs / profit margin in the Pricing and Invoicing tab of a Contract are not as expected.

Reproducing the Issue

  1. Go to the Sales Orders work center.  
  2. Select the Contracts view.
  3. Click on the New button and select Contract.
  4. Enter the respective data.
  5. Go to the Items tab.
  6. Add the respective product.
  7. Go to the Pricing and Invoicing tab.
  8. Go to the Pricing sub tab.
  9. Click on the Expand All button.
  10. Here you are able to see that the price component Costs is not pulled for the contract item and hence the Profit Margin (%) is 100 even though the costs have been maintained for the item and are valid.

Cause

There is no automatic calculation of the planned costs in the contract item. A contract is a long term agreement and costs on a contract item serve no business meaning since for contracts the item prices are copied from the Price Agreements and not from Pricing and Invoicing.
Costs cannot be manually entered in a contract. However, the costs will get determined in the sales order when you create a Sales Order with reference to a contract.
There are two exceptions when the price component Costs will be displayed in a contract:
1. Costs will be displayed Pricing and Invoicing is when you created a Sales Quote for Contract and then create the contract as a Follow-Up document of the Sales Quote for Contract. In this case the costs are taken over in the new contract for this particular item. However any new created contract item will not display the costs.
2. If a contract is created as a copy of a contract which was created as a Follow-Up document , the costs are also taken over in the new contract for this particular item. However any new created contract item will not display the costs.

Resolution

This is the expected system behaviour.

Keywords

KBA , AP-SLO , Sales Order Processing , How To

Product

SAP BUSINESS BYDESIGN 1708 ; SAP Business ByDesign 1405 ; SAP Business ByDesign 1408 ; SAP Business ByDesign 1411