In the MM Purchasing component, 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.

SAP menu to create Contracts and Scheduling Agreement:-

Tips by : Manjunath

SAP Reference Books:
SAP MM, HR, FI, CO, PP, SD, PM, PS, QM, SM, BW, APO, Basis,  ABAP/4, Certification, Books

Back to:
SAP MM (Materials Management) Configuration Hints and Tips

Return to :-
SAP ABAP/4 Programming, Basis Administration, Configuration Hints and Tips