What is the difference between a contract and a scheduling
agreement?
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.
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