Answer Posted / girish

The contract does not contain specific delivery dates or the individual delivery quantities. These are specified subsequently in release orders issued against the contract when customer requires them.
Characteristics of contract:
 Contracts are outline agreements. They do not contain details of the delivery dates for each of the items.
 To inform vendors of which quantity you need for which date, you enter contract release orders for a contract. A release order is a purchase order that references a contract.
 If a purchasing information record with conditions exists for the material and the vendor, the system automatically suggests the net price according to these conditions when you create the contract item.
 Contract validity period is defined in the contract header as the validity period
 For each item in a quantity contract, you define the target quantity and purchase order conditions.

Scheduling agreement
Details of the delivery date and quantity communicated to the vendor in the form of the delivery schedule.
Characteristics of scheduling agreements:
 Before creating a scheduling agreement, the purchasing user must define account assignment, purchasing organization, and purchasing group.
 A scheduling agreement can be created for subcontracting, consignment, and Third Party.
 Valid material number or account assignment category is mandatory for creating scheduling agreement
 Details of delivery dates and quantities are communicated to the vendor in the form of delivery schedules.
 Delivery schedule lines can be created with or without reference to a purchase requisition. Schedule lines can also be generated automatically using the MRP system.

What are the essential components in sap mm?

1432

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What is an account assignment category in a po document?

1062

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What is the difference between contract and scheduling agreement?

1215

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What is purchase requisition as related to sap?

1304

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Where do we define payment terms in po?

1234

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Explain the types of subcontracting stocks in sap mm

1200

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Explain 'automatic account assignment' configuration in mm?

1225

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What are the special stocks in sap?

1110

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What are the levels at which a batch number can be configured?

1303

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What are the differences between company-owned special stocks and externally-owned special stocks?

1480

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Explain how sd and mm are connected in sap?

1118

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When a sales order contains normal(norm) and third party items(bans) how does the material reacts? Next order comes as make to order(0001), another is BOM. So every time we have to change the item category group in mm02 OR is there a process to expand the same material with norm, bans, 0001, erla?

2493

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What is special about one time vendor?

1138

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What is mrp (material requirement planning)?

1191

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How do planned and unplanned consumption affect movement types?

1432

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