Which of the following apply when using centrally agreed contracts? Note: There are 2 correct answers to this question.

Question

Options

• AYou can use centrally agreed contracts in a procurement hub scenario.
• BYou can only create release orders for the central purchasing organization.
• CYou can maintain plant-specific conditions in centrally agreed contracts.
• DYou can use centrally agreed contracts without restrictions for any purchasing organization.

• A
  78% (29)
• B
  8% (3)
• D
  14% (5)

Explanation

Centrally agreed contracts (in SAP procurement) are negotiated by a central purchasing organization but designed to be shared across the organization - with some nuance.

Why A and C are correct: Option A is correct because centrally agreed contracts are specifically designed for procurement hub scenarios, where a central hub negotiates on behalf of multiple purchasing organizations or plants. Option C is correct because, while the contract is centrally negotiated, you can still maintain plant-specific conditions (e.g., different pricing or delivery terms per plant) within that contract to reflect local requirements.

Why the distractors are wrong: Option B is the opposite of the feature's purpose - the whole value of centrally agreed contracts is that other purchasing organizations (not just the central one) can issue release/call-off orders against them. Option D overstates the flexibility; centrally agreed contracts are not restriction-free - usage is governed by the purchasing organization hierarchy and defined scope, so not literally any purchasing organization can use them freely.

Memory tip: Think "Central = negotiated once, flexible in use." The word central tells you it works in a hub (A), and the word conditions can still be local/plant-specific (C). Reject any answer that says "only central" (too restrictive) or "no restrictions at all" (too broad).

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