Difference between schedule agreement n purchase order...

[Former Member]

hiii...

pls tell me the difference between schedule agreement n purchase order...

thanks & regARDS

REKHA SHARMA

[pardeep_malik]

A scheduling agreement is a longer-term arrangement with a vendor covering the supply of materials subject to predetermined conditions. The conditions are valid for a predefined period and a predefined total purchase quantity.

Scheduling agreements have several advantages:

1. Using scheduling agreements enables you to reduce processing times and the amount of paperwork within your enterprise. Scheduling agreements can replace a large number of standard POs or contract release orders. SA delivery schedule lines do not constitute an independent document but are part of the scheduling agreement. Procurement via scheduling agreements thus enables you to reduce the volume of documents used.

2. You only have to maintain low warehouse stocks as most of the stock holding is done by the vendor.

3. Your vendors have long-term service commitments which enable them to negotiate more favorable conditions with respect to their vendors and this benefits you in turn. In addition you can produce continuously and automate your process.

Define time-dependency in scheduling agreements and quotations:

SAP Customizing Implementation Guideu2192Materials Managementu2192Purchasing u2192 RFQ/Quotation or Scheduling Agreement u2192 Define Document Types

Purchase Order

it is predefined aggrement between vender and customer. conditions in purchase orders are always time-independent

conditions.

Regards

Pardeep Malik

[Former Member]

Purchase order is time independent document and Scheduling aggrement will time dependant or independant depending upon document typei.e like LP,LPA etc.,

Regards

[Former Member]

Dear,

Scheduling agreements for specific materials that to be delivered just in time.

A scheduling agreement is a long term arrangement with a vendor covering the supply of materials subject to predetermined conditions on predetermined datesd. The conditions are valid for a predefined period and predefined total purchase quantity.

Scheduling agreements can be created either without reference to another document, or with reference to an outline agreement, an RFQ, or another scheduling agreement. Scheduling agreements can also created reference to centrally agreed contracts. Item categories allowed in scheduling agreements are:

1. Standard

2. Consignment

3. Subcontracting

4. Third party

5. Text

Item categories M and W are not allowed. Account assignment U unknown also not allowed in scheduling agreements.

Conditions at material level entered may be time-dependent or time-independent, depending on the document type.

If scheduling agreement created with reference to the centrally agreed contracts, the conditions in the scheduling agreement should not be changed.

PURCHASE ORDER

Purchase order is a one time supply agreement with vendor satisfying the conditions entered in purchase order. The price, other conditions like transport charges, taxes, discounts and surcharges or not valid - or - may be changed in next purchase order basing on pre-agreed with vendor.

Regards,

Syed Hussain.