Which statements apply when using centrally agreed contracts? (Select two)

When discussing the characteristics of centrally agreed contracts in the context of SAP S/4HANA, it is essential to understand how these contracts are structured and utilized within the procurement process.

The statement indicating that you cannot specify plants in centrally agreed contracts is accurate. Centrally agreed contracts are designed to serve as overarching agreements that provide conditions for purchasing across multiple locations or plants, rather than being restricted to individual plants. This feature promotes consistency and facilitates procurement across the entire organization, enabling better cost management and supplier negotiation.

The capability to implement centrally agreed contracts in a procurement hub scenario is also true. This means that organizations can effectively use these contracts as a foundation for centralized purchasing strategies, supporting scenarios where procurement decisions are made at a central point but executed across multiple locations.

Focusing on the notion of contracts being limited to only one active centrally agreed contract at a time is misleading. Instead, multiple centrally agreed contracts can coexist, and the system can manage them effectively based on factors such as validity, pricing, and supplier agreements, allowing flexibility and enabling organizations to leverage various supplier agreements simultaneously.

Overall, the statements regarding the inability to specify plants in these contracts and the usability of centrally agreed contracts in a procurement hub scenario align with the overarching benefits and design of centralized procurement