outline agreements

[Former Member]

Hello SDN,

I would like your help to confirm if my understanding is correct:

1. Scheduling agreement : Target is only based on Quantity and not value.

2. Both value and quantity contracts can contain other agreements like special price agreements, customer and material restrictions.

3. Value contracts can be billed partially at per Release order level or via a billing plan based on agreed payment terms like milestone payment or percentage completion payment.

Question :

1. what does it mean by "the system does not allow you to automatically bill value contracts that have not been completely released." May I know what does 'completely released' mean? Am i right to say the particular release order must be completely delivered?

Have a great day.

Tom

[Former Member · Accepted solution]

hi tom,

yes tom you are right.

why because :

when the value contracts are released but not delivered only if you take the reference of sales order then it will deliver.

if it is not taking the reference of sales order then it should be fully released then only contract accepts to bill it.

because contract does not contain schedule lines directly

hope this clears your issue

balajia

[Former Member · Accepted solution]

Hi Balajia,

To conclude, kindly confirm that 'completely released' for Contract means the Entire contract is released whereas 'completely released' for Release orders means at each release order level.

regards

Tom

[Former Member · Accepted solution]

hi tom,

how do you do.

this is to confirm that,

yes you are right .

completely released for contract - the reference for that contract is completed.

completely released for sales order - all the items in that sales order are completely referenced and subsequent deliveries are been generated with full quantity.

hope this clears your issue

balajia