Two types- Contracts and Scheduling
agreement contains fixed delivery dates and quantity
and is valid for a certain period of time.
When you enter schedule line for the
item in the scheduling agreement, the system adds up the quantities that
have already been entered and compare them both the target quantity and
the quantity already shipped. This give you an overview of all the open
quantity, if the quantity in schedule line exceeds the target quantity,
system issue a warning message.
Two Types-Quantity contract and
The contract does not contain any schedule
line, delivery quantities or delivery date. It is valid for a certain period
Release orders are created with reference
to a contract. Schedule lines are created in the release order when it
is placed. You can choose materials directly or by exploding an assortment
module (list of valid materials-Master data for product).
You can create release order in any
currency and the total value is updated in the currency of the contract.
The value of release order is compared
with value still open in the contract. You can define how the system responds
when this value is exceeded (sales document type)
A value contract defines that your
customer agrees to purchase a fixed total value (target amount) of goods
and services during the defined period.
You can have partner function AA as
optional sold to party and AW as optional ship to party in the standard
You can maintain contract data at both
header and item level in the sales document.
If you assign a contract profile to
the sales document type, the system automatically determine default values
specific to the contract. These could be:
Rule for determining start and end
of the contract
What is meant by a Contract and
Scheduling Agreement? What are the differences between the two?
Contract is the agreement made between
the customer and company based on the material, quantity and price over
a period of time.
It can be used to facilitate the
business for planning and guarantees the fixed price agreement for
Scheduling agreement is also an
agreement with the customers, but it contains the predefined delivery dates(schedule
lines) and the quantities.
By shortly telling, it is an agreement
about the schedule line quantities and dates.
Contract will not have any predefined
delivery dates. First you need to create a contract and with reference
to that, you need to create lot of orders (i.e. Release orders), based
on that, every time you need to create delivery until the contract expires.
In scheduling agreement, you need
not create multiple orders, once the date is reached, the materials are
automatically delivered and billed.
This is the basic difference between