In the MM Purchasing component, a contract is a type of outline purchase agreement against which release orders (releases) can be issued for agreed materials or services as and when required during a certain overall time-frame.
Contracts are of two types:
1. Quantity contracts - Use this type of contract if the total quantity to be ordered during the validity period of the contract is
known in advance.
2. Value contracts - Use this type of contract if the total value of all release orders issued against the contract is not to exceed a certain predefined value.
But a scheduling agreement is a form of outline purchase agreement under which materials are procured on predetermined dates within a certain time period. A scheduling agreement consists of a number of items, for each of which a procurement type is defined. The
The following are the procurement types:
- Standard
- Subcontracting
- Consignment
- Stock transfer
Delivery of the total quantity of material specified in a scheduling agreement item is spread over a certain period in a delivery schedule, consisting of lines indicating the individual quantities with their corresponding planned delivery dates.
SAP menu to create Contracts and Scheduling Agreement:-
Tips by : Manjunath
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