purchase order

[Former Member]

hi

sap gurus

What is the difference between schedule agreement and

purchas order

regards

srinu

[former_member192897 · Accepted solution]

With regard to Scheduling Agreement:

1. The Plant Location must be entered in the Scheduling Agreement.

2. We do not have to create any other purchasing document except for delivery schedule line via Transaction ME38 or MRP running (with the appropriate setting of Source List).

3. Delivery Schedule line items are created subject to your specific requirement.

4. Can create both Scheduling Agreement with and without Release Documentation (subject to the Document Type LP or LPA) with the selection of either FRC or JIT delivery schedule.

5. Either time-dependent or time-independent conditions can be created subject to the customizing in the Document Type of the Scheduling Agreement.

6. Item Category 'M' and 'W' can not be used.

Schedule Agreement is Mainly used in Repetative Manufacturing Comapnies Such as Automobile Industry. If the Requirement is already known (For Every month first there is a Requirement of 10000 Bolts) then in this case A Scheduing agreement is Done.

In SA there is No Need to Release Purchase Orders like Contracts. Vendor will send the Goods based on the Schedule Line Maintained in ME38. you cannot make GR before the Schedule Line.

Where for Purchase order Whenever the Material is Not in Stock then only the Purchase Order will comes into Picture. This is One time Procurement / Deal. The Purhcase Order Price May change based on the vendor Conditions / situations.

Regards,

Ashok

[Former Member]

Dear Srinu,

The difference between Suheduling Agreement and Purchase Order is:

SA - is a longer term arrangement with the vendor covering the supply of materials subject to predetermined conditions. The conditions are valid for a predefined period and a perdefined total purchase quantity. SA can be created either with or without reference to a PR, an outline agreement, an RFQ, or another scheduling agreement. SA can also be created with refernce to a centrally agreed contract, thus facilitating the use of centrally negotiated prices. When you create SA, the following item categories are avaliable:

- Standard

- Consignment

- Subcontracting

- Third - Party

- Text

With regard, to Purchase Order:

- using SA enables you to reduce processing times and the amount of paper work with your enterprice

- SA can replace a large number of Standard POs or contract release orders.

- Procurement via: SA thus enables you toreduce the volume of documents used.

- SA are always plant specific.

Tcode for SA: Create / Change / Display - ME31L / ME32L / ME33 L

While Purchase Order is to place order for Goods / Material requirements (created once, sent to the supplier for receiving the incoming delivery and invoice).

Tcode for PO: Create / Change / Display -ME21n / ME22n / ME23n

Regards,

Prashanth Pai

AWARD IF, Useful

[kunal_ingale]

hi

purchase orders are to order something for an individual requirement(created once, sent to the supplier than receiving the incomingdelivery and invoice). End of the process.

Scheduling agreement is to maintain requirements for a part, that canbe delivered several times within the validity period of the agreement.

The exact delivery dates and delivered quantities can be createdmanually or by running MRP.

See Menu in ME33L: Scheduling agreement - Follow-on functions -Delivery schedule.

Any time you create new requirements manually, the forecast schedulehas to be created (Edit-Generate FC schedule).

When running MRP, the schedule releases are created automatically.

regards

kunal

award if helpful

[former_member581212]

hi

In sch agreement we maintain the schedule of purchasing for longer time..thus it can be used for the longer time..and for each and every update you dont need to make a new delievery schedule...here we provide a value limit..with a time period...

while in Po we make the doc with a single date/current date for current requirements....

Regards

Priyanka.P

AWARD IF HELPFULL

Edited by: Priyanka Paltanwale on Sep 15, 2008 11:32 AM

[Former Member]

hi priyanka

thanks to given me reply

we can maintain the delivery schedules in purchase orders also

and validation period also

isn't it priyanka

regards srinu

[former_member581212]

hi,

Delivery schdules are generated in ME21N only...or VIA MRP...

As i have mentioned here in my last post that the doc is valid for a specific period..this del. schedule is generated with respect to schedule agreement....

No the nomal Po can't be used for a longer period...

There is also a link:

http://help.sap.com/erp2005_ehp_03/helpdata/EN/75/ee0f8155c811d189900000e8322d00/frameset.htm

Hope it makes you clear

Regards

Priyanka.P

AWARD IF HELPFULL

[Former Member]

Ashoke thank Q very much for given reply

but i have small doubt is there any item catageries named M,W please give clarify

regards

srinu

[Former Member]

Dear,

Yes item category M,W exists for usage with Scheduling agreements.

The item categories M and W are intended for the entry of contract items without specification of the material number.

Item category M

Recommended for similar materials of the same price. These can be materials with different material numbers or materials without material master records.

You have set up a contract with your vendor covering various types of writing paper (lined, squared, blank, two-/four-hole prepunched, etc.). The different types of paper have the same weight, the same quality, and the same price.

When entering this contract item of category M, you enter the short description,material group, target quantity, unit of measure, and price, but no material number. The short description must then be entered in the contract release order (forexample, lined, two-hole prepunched).

You also have the option of releasing materials with a material master record against this contract item in the release order, provided that the material group and purchase order unit of measure agree.

Item category W

Recommended for materials belonging to the same material group but withdifferent prices. Item category W can only be used in value contracts.

You have set up a contract with your vendor for various types of cable. The contract is to cover all types of cable included in the vendor's price list. However, the exact type is only determined when a purchase order is created for a certain cable. Instead of creating one contract item for each type of cable in the vendor's

assortment, you could enter item category W and the appropriate material group (for example, cable). From the short text, it would then be clear that the contract item covers all types of cable supplied by the vendor in question. Each release order issued against this contract would then contain the exact specification of cable type and quantity (for example, double-shielded coax, 1 meter), and price.

When entering the contract item, you enter only the short text and the material group. You do not enter the target quantity or price. It is possible to enter additional conditions. For example, you can enter a discount in the header conditions if the vendor grants a discount on all POs referencing the contract. The

discount is calculated automatically when a contract release order is created.

The price, the target quantity, and the material number are not specified until you create a release order. The relevant material master record must be assigned to the same material group as the contract item referenced. If the contract release order does not contain a material number, it must have a valid account assignment (such as a cost center).

Regards,

Syed Hussain.