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OUTLINE

GREEMENT

M CATHERINE VIDHYA

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What is Outline Agreements?

The outline purchase agreement is often

referred to as a blanket or purchase order. It is

basically a long-term agreement between the

purchasing department and vendor for materialor services for a defined period of time. The

purchasing department negotiates with the

vendor a set of terms and conditions that arefixed for the period of agreement.

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CONTR CT GREEMENT

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Contract: ME31K

A contract is a longer-term agreement with a vendor tosupply a material or provide a service for a certain

period of time. A number of different terms in

purchasing literature, including "blanket contract",

"systems contract" and "period contract".

The contract does not contain specific delivery dates or

the individual delivery quantities. These are specified

subsequently in release orders issued against thecontract when customer requires them.

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Contract types

When creating a contract, you can choose

between the following contract types:

Value contract (MK) :The contract isregarded as fulfilled when release orders

totalling a given value have been issued.

Use this contract type when the total value

of all release orders should not exceed a

certain amount.

Quantity contract (WK) :The contract is

regarded as fulfilled when release orderstotalling a given quantity have been issued.

Use this contract type when the total

quantity to order over the duration of the

contract is known.

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Item Category

M- The material is unknown

W- Value and quantity are unknownD- Procuring an external service

K- Consignment material is involved

L- Subcontracting material is involved

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Scheduling greement

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SCHEDULING AGREEMENT:Scheduling agreement is a long term purchase

agreement, where you will keep issuing the

delivery schedules whenever there is a change inrequirement or at predetermined time intervals.

The delivery schedule can be on

hour/daily/weekly/monthly basis. Agreement

with the vendor for the supply of matl, may be a

quanity or value. The delivery dates will be

maintained in ME38 ref the SA which are called

delivery schedules.

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LP: without release documentation-system will transmit the delivery info

to the vendor once you save the

document.LPA: With release documentation-

after creating the delivery schedules

you need to create SA release usingME84.

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TH NK

YOU