What is Outline Agreement?
Outline agreement is a long-term purchase agreement between vendor and customer. Outline agreement are two types:
- Contract
- Scheduling Agreement
Contract The contract is draft agreement, and they do not include delivery dates for the material. Contract is two types :
- Quantity Contract: This contract considered to fulfilled when the company supplied an agreed total quantity of materials against the contract.
- Value Contract: This contract considered to fulfilled when the company supplied agreed total value of material against the contract.
Create Quantity Contract
Step-1
- Enter T-code ME31K in the command field.
- Enter Vendor / Agreement Type (MK- Quantity Contract) / Agreement Date.
- Enter Purchase Org., Purchasing Group in organizational data.
Step-2 Enter Validity End date of contract in header data screen.
Step-3
- Enter Material ,Target quantity (A quantity for which quantity contract being created) and net price
- Click On Save Button.
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
- Enter T-code ME31 in command field.
- Enter Vendor / Agreement Type (LP- Scheduling agreement) / Agreement Date.
- Enter Purch. Organization / Purchasing group.
Step-2 Enter Validity End Date in header screen.
Step-3 Enter Material / Target Quantity / Net Price / Plant in Item Overview Screen.
Step-4 Enter Exclusion in next screen .
Step-5 Get back previous screen item overview and click on save button. A message as below -
