Contract and Scheduling Agreement: This Question Has Been
Contract and Scheduling Agreement: This Question Has Been
Hi
Does anybody knows what is the main difference between a contract and a scheduling agreement?
regards
Girish
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Manish Kumar Agarwal Mar 31, 2009 8:09 AM (in response to Guest )
An outline agreement can be a contract or a scheduling agreement. There are two key differences in the use of these
two agreement types:
-- The volume of documents
In the case of the contract, as a rule, you create a new purchase order in the system each time you release goods or
services against the contract.
With the scheduling agreement, on the other hand, there is only one further document apart from the agreement
document; this is the delivery schedule,
which is continually extended as new requirement quantities and delivery dates are added.
-- Use in automatic materials planning
Requirements planning can be set up in such a way that the contract item is automatically assigned to a requisition
item as the source of supply.
However, this requisition must subsequently be converted into a purchase order (contract release order). In the case of
the scheduling agreement, it
is possible to directly generate scheduling agreement delivery schedules from the planning run, thus removing the
need for any further processing
time in the purchasing department.
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Hi Girish
With regard to Outline Agreement:
1. You can create the centrally contract (cross-plant) where you can maintain different pricing conditions for each and
every plant
2. You have to create the Release Order with reference to Outline Agreement.
3. No detailed delivery schedule can be made in the Release Order.
4. No Release documentation is created.
5. Only time-dependent conditions can be created.
6. Some Item Category 'M' and 'W' can be used.
With regard to Scheduling Agreement:
1. The Plant Location must be entered in the Scheduling Agreement.
2. We do not have to create any other purchasing document except for delivery schedule line via Transaction ME38
or MRP running (with the appropriate setting of Source List).
3. Delivery Schedule line items are created subject to your specific requirement.
4. Can create both Scheduling Agreement with and without Release Documentation (subject to the Document Type
LP or LPA) with the selection of either FRC or JIT delivery schedule.
5. Either time-dependent or time-independent conditions can be created subject to the customizing in the Document
Type of the Scheduling Agreement.
6. Item Category 'M' and 'W' can not be used
Regards
Ashu
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