Describe what is outline agreement.

Outline agreement are:
   
1. Contract
2. Scheduling agreement
   
CONTRACT - ME31K
   
Contract is a long term purchasing agreement with a vendor concerning the suppy of materials. These are valid for a certain period of time and cover a predefined total purchase quantity or value.  Here you can't schedule the lines.
   
Based on PR and RFQ, you also can create contract.
   
Create info record before create contract to maintain prices.
   
Two types of contract
   
1. Quantity contract
2. Value contract
   
Prerequisite for contract - T.code ME31K
   
Enter agreement type - MK quantity contract

Item category - standard
   
Second screen : enter validiy end
   
<SAVE> R/3 system generates contract document number XXXXXXX
   
Create PO against contract.
   
MIGO against PO
   

SCHEDULING AGREEMENT - T.code ME31L
   
Agreement type - LP

Item category - Standard
   
Create schedule lines - T.code ME38.
   
Here, do mention the different delivery dates for the material that are subject for the whole quantity which has been mentioned in the ME31L

SAP MM Reference Books:
SAP Material Management Interview Questions, Certification and Configuration Books

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