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what is the diff between contract , quotation, and schedule line agreement

Former Member
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hi can any one explain about this difference.

what is the diff between contract , quotation, and schedule line agreement.

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Answers (2)

Answers (2)

Former Member
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Hi raju,

Qutotaion: is a document created by the company which is addressed to the customer giving him more info about the product you intend to sell and also terms & conditions etc. It is only mapping the quotation which we use in Normal Sales process. It can be crated with Ref to Inquiry or directly. Order may be created iwth ref to quotation.

Contract: is an agrrement between the comnpany & sold-to-party (customer)

It is of 2 types Quantity Contract & Value Contract. Every contract has a validity period. In quantity contract you have an agrrement about the quantity to be sold to customer and you can have special prices for the contracts. In general any customer enters into contract for a price benefit and from company's presective it will assure the company that customer would not go to competetitors.

It is created in SAP using VA41. Every contract has a contract no and when ever customer wants material he will create a sales order (called Release Order) and it is created with ref to contract no. all the release orders are updated in contract document flow. with in the contract validity period customer can create n no of release orders till the target contract value is reached. if the target value is reached you can extend the contract or close it as per your requirement.

Scheduleing agreement: is also a contract between company and sol-toparty. the difference here is in scheduling agreement customer will tell in contract itself what product he wants, what quantity he wants and when the delievry is to be made. so in sheduling agreement only you have schedule lines created and when the delievry dates is reached you can directly create a delivery with ref to contract and no seperate sales order (release orders) are required for this type of contracts.

Also go thr below links for more info:

SCHEDULING AGREEMENTS:

http://web.mit.edu/sapr3/windocs/bpors11m.htm

<a href="http://help.sap.com/saphelp_47x200/helpdata/en/70/a7853478616434e10000009b38f83b/frameset.htm">CONTRACTS</a>

<a href="http://help.sap.com/saphelp_47x200/helpdata/en/70/a7853478616434e10000009b38f83b/frameset.htm">SCHEDULING AGREEMENTS</a>

REWARD IF IT HELPS

Regards

Srini

Former Member
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hi

<b>quotation -</b> Goods rate for the customer from company

<b>contract and schedule line agreement</b> - Outline agreement between company and customer,from this Valid date to Valid to.Company gives proper schedule means scheduleline agreement ( Correct delivery date and delivery quantity).not shchedule means contract,conmpany gives the goods upto valid end date.

Rewards point it helps