Regarding : Contracts and Scheduling Agreements

[Former Member]

Hi All SAP Proffessionals,

Can anybody tell me what do we mean by Contracts/Scheduling Agreements?

[Former Member · Accepted solution]

Hi there,

In a contract you enter into an agreement with the customer that he will buy a specified quantity of goods from you in a year. Validity peeriod is usually for 1 year unless otherwise specifed.

They are of 2 types:

Quantity contracts: Customer will enter into an aghgrement that he will buy 10000 quantity of item A in 2008-2009 irrespective of the value.

Value contract: Customer will aggree that he will buy $10000 worth of items from you in 2009-2009 irrespective of the item he takes.

Scheduling aggrement: Customer will enter into an aggrement by which you ship 100 items of material A on 10th of every month or 1st week of every month. Validity peeriod is usually for 1 year unless otherwise specifed.

Pls refer http://help.sap.com/erp2005_ehp_03/helpdata/EN/70/a7853478616434e10000009b38f83b/frameset.htm

http://help.sap.com/erp2005_ehp_03/helpdata/EN/70/a7853478616434e10000009b38f83b/frameset.htm

for further info

Regards,

Sivanand

[Former Member]

Hi Mahesh,

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.

Contracts and Scheduling Agreement transaction codes:

Transaction codes:

Contracts: ME31K to ME35K

Scheduling agreements: ME31L to ME35L.

Please award if helps!

Thanks!

preethi.