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  Assignment : OUTLINE AGREEMENT

  Company : ATOZ SOFT, Coimbatore

  Trainee : !"!NET#A$I

  Mo%&'e : SA" MM

 

Create% on : ()!*+!)*(+

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SAP MM - Outline Agreement

Vendor selection is an important process in procurement cycle. Vendors can be selected

by quotation process. Once vendors are short-listed by organization, it enters into

agreement ith a certain vendor to supply certain items ith certain conditions and

typically hen agreement is reached a !ormal contract is signed ith the vendor. So,

outline agreement is a long term purchasing agreement ith vendor. "he #ey points about

outline agreement are as !ollos$

• Outline agreement is a long term purchasing agreement ith vendor containing

terms and conditions regarding the material that is supplied by vendor.

• Outline agreement are valid up to certain period o! time and cover a certain

prede!ined quantity or value.

Outline agreement is o! !olloing to types.

• %ontract

• Scheduling Agreement

%ontract

%ontract is a long term outline agreement beteen vendor and ordering party over 

prede!ined material or services over certain !rameor# o! time. "here are to types o! 

contract$

Quantity Contract$ &n this type o! contract overall value is speci!ied in terms o! total

quantity o! material to be supplied by vendor.

Value Contract$ &n this type o! contract overall value is speci!ied in terms o! total amount

to be paid !or that material to the vendor 

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"%ode$ M'()*

Provide name o! vendor, type o! contract, purchasing organization, purchasing group and

plant along ith agreement date.

+ill in all necessary details li#e agreement validity start date, end date, pay termsi.e termso! payment.

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Pr 

ovide material number along ith target quantity i! quantity contract or net price i! value

contract and material group. %lic# on save. A ne %ontract ill be created.

Then create po using by ME21n select cantract no create new po.

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 Note:Ther if asking any release strategy for po creation use t code me3k to

release.

Scheduling Agreement

Scheduling agreement is a long term outline agreement beteen vendor and ordering

party over a prede!ined material or service hich are procured on predetermined dates

over a !rameor# o! time. Scheduling agreement can be created by !olloing to steps$

• %reating scheduling agreement

• Maintain scheduling lines !or the agreement

%reating scheduling agreementScheduling agreement can be created by !olloing the belo step

"%ode$ M'()

On SAP Menu screen select %reate e/ecute icon by !olloing the above step.

Provide name o! vendor, agreement typeP !or scheduling agreement, purchasing

organization, purchasing group, plant along ith agreement date.

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+ill in all necessary details li#e agreement validity start date, end date, pay-termsi.e terms

o! payment.

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Provide material number along ith target quantity, net price, currency and material group.

%lic# on save. A ne Scheduling Agreement ill be created.

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Maintain scheduling lines !or the agreement

Schedule lines can be maintained !or scheduling agreement by !olloing the belo steps.

" code$me(0

On SAP Menu screen select Maintain e/ecute icon by !olloing the above step.

Provide the scheduling agreement number.

Select line item. 1o to &tem tab. Select delivery Schedule.

Provide delivery schedule date, target quantity. %lic# on save. Schedule lines are no

maintained !or the scheduling agreement.

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