What is the difference between schedule agreement and
Ashok Kumar Telugu replied
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.