Outline Agreement in SAP: Contract & Scheduling Agreement ME31

What is Outline Agreement?

Outline agreement is a long-term purchase agreement between vendor and customer. Outline agreement are two types:

  1. Contract
  2. Scheduling Agreement

Contract The contract is draft agreement, and they do not include delivery dates for the material.  Contract is two types :

  1. Quantity Contract: This  contract  considered to fulfilled when the company  supplied  an agreed total quantity of materials against the contract.
  2. Value Contract: This  contract  considered to fulfilled when the company supplied agreed total value of material against the contract.

Create Quantity Contract

Step-1

  1. Enter T-code ME31K in the command field.
  2. Enter Vendor / Agreement Type (MK- Quantity Contract) / Agreement Date.
  3. Enter Purchase Org.,  Purchasing Group in organizational data.

quantity contract

Step-2 Enter Validity End date of contract  in header data screen.

quantity contract2

Step-3

  • Enter Material ,Target quantity (A quantity for which quantity contract being created) and net price
  • Click On Save Button.

quantity contract3

A message as  will be displayed. 

Create Scheduling agreement

The scheduling agreement is a long-term purchase agreement with the vendor in which a vendor  is bound for supplying of material according to predetermined conditions. Details of the delivery date and quantity  communicated to the vendor  in the form of the delivery schedule.

Step-1

  1. Enter T-code ME31 in command field.
  2. Enter Vendor / Agreement Type (LP- Scheduling agreement) / Agreement Date.
  3. Enter Purch. Organization / Purchasing group.

sch_agr

Step-2 Enter Validity End Date in header screen.

sch_agr2

Step-3 Enter Material / Target Quantity / Net Price / Plant in Item Overview Screen.

sch_agr3

Step-4 Enter Exclusion in next screen .

sch_agr4

Step-5 Get back previous screen item overview and click on save button. A message as below -

sch_agr5