Creating Contract TCODE in SAP MM: A Step-by-Step Guide

If you`re an SAP MM user, you know the importance of creating contracts in the procurement process. Contracts help streamline purchasing activities and allow you to save both time and money. In this article, we`ll walk you through the process of creating a contract TCOD in SAP MM.

Step 1: Access the Contract Creation Screen

To create a contract in SAP MM, you`ll need to access the contract creation screen. You can do this by using the TCODE ME31K. This is the standard TCODE for creating contracts in SAP MM.

Step 2: Select the Document Type

Once you`ve accessed the contract creation screen, you`ll need to select the document type. There are several types of contracts in SAP MM, including quantity contracts, value contracts, and scheduling agreements. Choose the appropriate document type based on your business requirements.

Step 3: Enter the Contract Information

After selecting the document type, you`ll need to enter the contract information. This includes the contract number, vendor, validity period, and terms and conditions. You can also add attachments, such as specifications or legal documents, to the contract.

Step 4: Define the Contract Items

The next step is to define the contract items. This involves entering the material or service that you`re purchasing, the quantity, the delivery date, and the price. You can also specify any discounts, surcharges, or taxes that apply.

Step 5: Check the Contract

Before saving the contract, it`s important to check all the information you`ve entered. Make sure that the contract details are accurate, and that all the required fields are filled in. You can also run a simulation to check the pricing and make sure that it`s in line with your procurement budget.

Step 6: Save the Contract

Once you`re satisfied with the contract, you can save it. SAP MM will generate a unique contract number, and the status of the contract will change to “locked.” This means that no further changes can be made to the contract.


Creating a contract TCOD in SAP MM is a straightforward process that can help you streamline your procurement activities and save time and money. By following these steps, you`ll be able to create a contract that meets your business requirements and ensures a smooth procurement process.