FromSAP Learning Hub – Course: SAP Ariba Procurement: Contract Compliance → Understanding Contract Hierarchies, the course explains how master and subagreements are structured to manage spend visibility and supplier relationships.
“Amaster agreementrepresents the main contractual relationship, typically with the manufacturer or primary supplier. Subagreements are used to capture transactions or pricing with intermediaries such as resellers or distributors.”
“When an organization buys through resellers but must track spend with the manufacturer, the correct setup is to establish amaster agreement with the manufacturerand linksubagreements with the resellers. This allows all spend flowing through the resellers to roll up under the manufacturer’s master contract for accurate reporting and compliance tracking.”
Verified Reference Source (Internal SAP Learning Content)
SAP Ariba Procurement: Contract Compliance → Managing Contract Hierarchies
Learning Journey:Procure to Pay with SAP Ariba Buying and Invoicing
Extract:
“To track total spend with a manufacturer while purchasing through multiple resellers, create a master agreement with the manufacturer and subagreements with each reseller.”
Answer: B
The correct hierarchy isMaster agreement with manufacturer, Subagreement with reseller. This configuration ensures that all reseller transactions contribute to the overall manufacturer spend visibility and compliance metrics in SAP Ariba.
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