VA41 - Create Sales Contract for Single Sponsor or Consortium

Use these steps to create a sales contract to schedule billing for a sponsored project. The sales contract is linked to the sponsor and project and includes a billing schedule.

  1. Get started (SAP menu path, fast path)
  2. Create contract: initial screen
  3. Create contract: header (enter reference no.)
  4. Create contract: overview
  5. Create contract: item data: pricing (enter periodic payments or authorized total)
  6. Create contract: item data: billing plan
  7. Create contract: account assignment
  8. Mark for special handling or hide PI, if necessary
  9. Save contract

1. Get Started

2. Create Contract: initial screen

To complete the initial screen, you need to enter the contract type and information about SAP at MIT.

  1. Identify contract type:

    Contract type (Enter "ZCON" for schedule billing contract)

  2. Enter SAP-at-MIT information:

    Sales organization (Enter "1000" for Sponsored Billing)

    Note: Parameter ID VKO can be set up in the user's profile with the value 1000 - System -> User profile -> Own data -> (tab) Parameters

    Distribution channel (Enter "10" for MIT Distribution Channel)

    Note: Parameter ID VTW can be set up in the user's profile with the value 10 - System -> User profile -> Own data -> (tab) Parameters

    Division (Enter "10" for MIT Division)

    Note: Parameter ID SPA can be set up in the user's profile with the value 10 - System -> User profile -> Own data -> (tab) Parameters

  3. or ENTER
    The Create Contract: Overview screen displays.

3. Create Contract: header (enter reference number)

You need to perform this step only if one contract is being closed out and a new one created.

  1. From GoTo menu on menu bar, select Header > Financial Accounting.

    The Create Contract: Header screen displays; the Accounting tab is open.

  2. Type the old contract number (10 digits) in the Reference No. field, as shown below.

    Note: You should also enter the new contract number on the old contract record using VA42 - Change Contract.

  3. From GoTo menu on menu bar, select Overview.

    The Create Contract: Overview screen redisplays. Continue with the next steps.

4. Create Contract: overview

  1. Type sponsor number:

    Sold-to party (enter 10-digit sponsor ID number)

  2. Type Purchase Order Number, if there is one:

  3. Under the Sales tab,
    • Type Title, if there is one, in Description field,

    • Type Contract start and end dates:


    • In Material field of first line item, type "PROJECT":

      Material (Enter "PROJECT" to identify as sales contract for sponsor billing)

  4. (or ENTER) to display additional system defaults (shown below). The Description defaults to Sponsored Research Billing and Item Category (ItCa; to right of Description) defaults to periodic billing, ZCN2.

  5. The Description should be changed from "Sponsored Research Billing" to the MIT Award Number (see step 5 for an example).

5. Create Contract: Item Data - Pricing (periodic payments or authorized total)

  1. On Create Contract: Overview,
    • select Project line item (click on box to left of Item field or put cursor in anywhere in record; see above),
    • click on (F7)
      The Pricing tab of Create Contract: Item Data screen displays.

  2. To enter periodic payments or authorized total,
    • Type "EK01" in CnTy field:
    • In Rate field, type periodic payments (for Periodic Billing) or project authorized total (for Milestone Billing).
    • Click on (or ENTER) to display additional system defaults.

  3. Click on (F3) to return to Create Contract: Overview screen.

6. Create Contract: Item Data (Billing Plan)

To enter the billing schedule,

  1. To display the Contract Move: Dates for Billing Plan screen,

    • on Create Contract: Overview screen, select Project line item (click on box to left of Item field or put cursor on line item; see above),
    • click on Billing Plan button (F6).
      The Billing Plan tab on Create Contract: Item Data screen displays.

  2. For Periodic Billing, the billing plans are all automatically created using the default quarterly payments one month in advance.


    You can change the periodicity, for example, monthly, Y1; semi-annually, Y3; yearly, Y4. You can also indicate that it should not be billed in advance or that it should be billed 2 or 3 months in advance (Z2 or Z3). You can also indicate that there was an advanced payment by entering the block ZA, as described below.

    3. Billing blocks (Block field) are used to block creation of invoices. There are 5 billing blocks for sponsor billing:

    • ZA - Advanced Payment
    • ZH - Historical Data
    • ZM - manually billed (should never happen)
    • ZP - pending
    • ZT - account terminated

      To apply a billing block, press or type ZA, ZH, ZP, or ZT into the Block field, shown above.

  3. Click on (F3) to return to Create Contract: Overview.

7. Create Contract: Item - Account Assignment

  1. To display the Create Contract: Item - Account Assignment screen,

    • on Create Contract: Overview, select Project line item (click on box to left of Item field or put cursor on line item; see above),

    • from menu bar, select GoTo >> Item >> account assignment.
      The Account Assignment window opens.

  2. Type the 7-digit WBS element, and click
    The Profit center has been entered by SAP.
  3. Click on (F3) to return to Create Contract: Overview screen.

8. Mark for Special Handling or Hide PI, if necessary

  1. If bills should be sent to the department, lab or center prior to sending to the customer, mark the contract for Special Handling:

  2. If the PI should not appear on the bill, Type of Billing Doc is "Hide PI":

    • Goto->Header->Additional data A

9. Save Contract

Copyright © 2002, Massachusetts Institute of Technology. All rights reserved.