Which statement regarding Contract Limit Compliance is true?

The statement that the contract remains open as long as at least one line-item limit is below tolerance is valid. This reflects the nature of contract limit compliance within SAP Ariba, where the system evaluates the limits established for each line item in the contract. When at least one line-item limit is still under the defined tolerance, the contract stays active.

This approach allows for flexibility in managing contracts, as it enables ongoing procurement activities even if some aspects of the contract have reached their limits. Consequently, it helps maintain operational continuity rather than forcing a closure on the contract prematurely when not all line items have been fully utilized or exceeded their limits.

Understanding this concept is essential for effectively managing contracts in SAP Ariba, as it empowers procurement teams to navigate contract limits without derailing their purchasing activities.