How are POs and Contracts are related?
We are ABAP4 developers and pretty new at MM module. We would be appreciated if some MM experts here can tell us the relationship between Contracts/RFQs and POs!
Thanks and we will give you points!
Yes you are right. Contract is like a Outline purchasing agreement and against which we can release any number of purchase orders till the contract terms and conditions are met in a overall time frame. These purchase orders are also called as a contract release orders
Basically Contracts are in two forms
Value contract and quantity contract
in this terminalogy release means release of purchase order against contract
Hope this helps