outline agreement

[Former Member]

hi,

what is the difference between contracts and scheduling agreements?

[Former Member · Accepted solution]

Hi Iqbal,

(1) - Schedule agreements allow you to have 2 different sets of schedule lines (VBEP-ABART). Standard SAP you should have two sets of tabs - of schedule lines. One Forecast & the other JIT. Forecast forwards the schedule lines to planning (seen in MD04) and JIT passes them to shipping (VL10). They can be identical or different. Typically these are used for component supplier customers (namely Automotive). The customer will provide you 4-10 weekly buckets (usually a

Monday date) of future forecast qtys. Also send you 1-2 weeks of individual FIRM ship dates - which are entered on the JIT. It comes down to the customer not knowing exactly what they need next week, but they don't want to suprise you with a large order qty, where your lead times are 5+ days. The forecasted qtys they sent last week should account for this.

(2) Cumulative Quantities are tracked and influence how the schedule agreement passes requirements to both forecasting and shipping. These qtys are sometimes requested by the customer on ASNs. Cumulative qtys reset at year end unless you've got a customer calendar or you've modified standard SAP user exits to not reset.

Schedule agreements are very nice when the customer sends EDI data (830s = forecast or 862s = JITs). Outside of that they can really cause trouble regarding daily maintenance, missing requirements, cum qty corrections, year end processing, etc.

One alternative would be to use customer independent requirements - entering the weekly, monthly forecasting qtys and entering standard sales orders (with or without multiple schedule lines) to represent the true firm qtys.

Refer below

http://www.sap-basis-abap.com/mm/gr-creation-for-schedule-agreement.htm

You can fix a price in the info record for a say qty from 1-100 price RS150 & if the order qty is 101- 500- the prices is 140 . Scales cannot be used directly in PO but can be pulled into the PO from various master data like info record, quota arrangement.

For further details refer sdn thread below

http://help.sap.com/erp2005_ehp_02/helpdata/en/75/ee1fa755c811d189900000e8322d00/frameset.htm

Reward If helpful..

Regards..

Praveen Kumar.D

[Former Member]

Hi Friend,

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.

[Former Member]

hi,

Contract is an agreement between the manufacturer and the customer to supply the products with a validity period. Contracts do not have schedule Lines. We have Quantity, Value & Qty+ Value Contracts. When there is more demand then supply, then company's enter into agreements only to evenly distribute the products to customer.

Schedule agreements concentrate to supply the products over different delivery schedules.

CHAN

[Former Member]

Hi,

Contract is a agreement between sold-to-party and you. It is of 2 types Value and quantity contract. every contract has a validity period. first you create a contract and then with ref to contract you will create a sales order using VA01 and these sales orders are called as Release orders. The reamining process goes on as normal sales cycle i.e., delivery, picking , pGi and BIlling. all the release orders released within the validity period of contract are updated in Contract and can be seen in the Document flow. If the value of contract increased system will issue a warning.

Contract using : VA41

SCheduling Agreement is also a type of contract with Sol-to-party. But the difference is that in Scheduling agreement you will specify what is the material, quanty and when it is required. based on when it is required system will update the schedule lines and with ref to Schedule agreement you can directly create a delivery and No release order is required as in the contract only you know what material and what quantity and when to supply.

You create Schedule agreement using Tcode: VA31

Cheers,

Chitty