Outline Agreements Contract (Value / Quantity)

SAP User Procedure

Outline Agreements
Contract (Value / Quantity)

With Contract Approvals – Release Strategy

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Outline Agreements Contract (Value / Quantity)

Contents
1. Purpose:.........................................................................................................2
2. Scope:............................................................................................................3
3. How to create Contract:................................................................................3
3.1 Quantity Contract:...........................................................................................................3
3.2 Value Contract.................................................................................................................7
3.3 Contract Approval - Release Strategy............................................................................11
3.3.1 Purpose:.....................................................................................................................11
3.3.2 How Approval / Release appears in Contract Document...........................................12
3.3.3 How to Approve - Release the Contract....................................................................13

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Outline Agreements Contract (Value / Quantity)

1. Purpose:

The document describes business process Outline Agreement in SAP system.

2. Scope:

An outline agreement is a longer-term arrangement between a purchasing organization and a vendor

i. Quantity Contract.
ii. Value Contract.

3. How to create Contract:

Path to Create Contract

Menu Path Logistics → Materials Management → Purchasing → Outline

Agreement → Contract → Create
Transaction Code

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3.1 Quantity Contract:

Quantity Contract − In this type of contract, the overall value is specified in terms of total quantity of
material to be supplied by vendor.
Header Level Data:
Vendor
Agreement Type
Agreement Date
Purchasing Organization
Purchasing Group
Plant
Validity Start Date
Validity End Date

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Detail Level Data:

Target Quantity 25 KG (Mandatory Field)
Net Price 25/KG

3.2 Value Contract

Value Contract − In this contract type, the overall value is specified in terms of total amount to be paid
for that material to the vendor.
Header Level Data:
Vendor 11794
Agreement Type WK (Value Contract)
Agreement Date 01.02.2022
Purchasing Organization 1000
Purchasing Group 003
Plant HP01
Validity Start Date 01.02.2022
Validity End Date 31.01.2023
Target Value 100000

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Detail Level Data:

Target Quantity 25 KG (Mandatory Field)
Net Price 25/KG

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3.3 Contract Approval - Release Strategy

3.3.1 Purpose:

Contract approvals –

Contract Approval - Release strategy has been defined where release hierarchy will be followed as per

I. Head of Supply Chain.

II. MD
III. CEO

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3.3.2 How Approval / Release appears in Contract Document.

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3.3.3 How to Approve - Release the Contract.

Transaction: ME35K Release Approve Purchase Document

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