5.outline agreement
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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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