contract and scheduling agreement

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GuestMar 31, 2009 8:06 AM

Hi
Does anybody knows what is the main difference between a contract and a scheduling agreement?
regards
Girish

Correct Answer by ANONYMOUS ANONYMOUS on Mar 31, 2009 8:14 AM

Hi Girish
With regard to Outline Agreement:
1. You can create the centrally contract (cross-plant) where you can maintain different pricing conditions for each and
every plant
2. You have to create the Release Order with reference to Outline Agreement.
3. No detailed delivery schedule can be made in the Release Order.
4. No Release documentation is created.
5. Only time-dependent conditions can be created.
6. Some Item Category 'M' and 'W' can be used.
With regard to Scheduling Agreement:
1. The Plant Location must be entered in the Scheduling Agreement.
2. We do not have to create any other purchasing document except for delivery schedule line via Transaction ME38
or MRP running (with the appropriate setting of Source List).
3. Delivery Schedule line items are created subject to your specific requirement.
4. Can create both Scheduling Agreement with and without Release Documentation (subject to the Document Type
LP or LPA) with the selection of either FRC or JIT delivery schedule.
5. Either time-dependent or time-independent conditions can be created subject to the customizing in the Document
Type of the Scheduling Agreement.
6. Item Category 'M' and 'W' can not be used
Regards
Ashu
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Re: contract and scheduling agreement

Ananthapadmanaban V Mar 31, 2009 8:07 AM (in response to Guest )

hi
contract means either it will be a quantity based or value based.
schedule line agreement will have different quantity with differnt prices.

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Re: contract and scheduling agreement

Manish Kumar Agarwal Mar 31, 2009 8:09 AM (in response to Guest )
An outline agreement can be a contract or a scheduling agreement. There are two key differences in the use of these
two agreement types:
-- The volume of documents

In the case of the contract, as a rule, you create a new purchase order in the system each time you release goods or
services against the contract.
With the scheduling agreement, on the other hand, there is only one further document apart from the agreement
document; this is the delivery schedule,
which is continually extended as new requirement quantities and delivery dates are added.
-- Use in automatic materials planning
Requirements planning can be set up in such a way that the contract item is automatically assigned to a requisition
item as the source of supply.
However, this requisition must subsequently be converted into a purchase order (contract release order). In the case of
the scheduling agreement, it
is possible to directly generate scheduling agreement delivery schedules from the planning run, thus removing the
need for any further processing
time in the purchasing department.

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Re: contract and scheduling agreement

Umesh Parab Mar 31, 2009 8:11 AM (in response to Guest )

Main difference between a contract and a scheduling agreement:
When we require we will release the purchase order against contract i.e. we will create a PO with reference to the
contract.
Where as in Schedule agreements we can enter the schedule lines i.e delivery schedules for a scheduling agreement.

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Re: contract and scheduling agreement

Priyanka Paltanwale Mar 31, 2009 8:13 AM (in response to Guest )

hi,
For Contracts we need Contract PO to be made
While in Schedule agrrement, the further doc is Delivery schedule lines
Contract once made can't be futher extended at the contract PO...But in the delievery schedule lines its possible, so
there is less docs created with one schedule agreement, while in contract you need to create a new contract every
time..
Less paper work in the schedule agreement and more at contracts...
Hope it solves your query..
Regards
Priyanka.P

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Correct AnswerRe: contract and scheduling agreement

Guest Mar 31, 2009 8:14 AM (in response to Guest )

Hi Girish
With regard to Outline Agreement:
1. You can create the centrally contract (cross-plant) where you can maintain different pricing conditions for each and
every plant

2. You have to create the Release Order with reference to Outline Agreement.
3. No detailed delivery schedule can be made in the Release Order.
4. No Release documentation is created.
5. Only time-dependent conditions can be created.
6. Some Item Category 'M' and 'W' can be used.
With regard to Scheduling Agreement:
1. The Plant Location must be entered in the Scheduling Agreement.
2. We do not have to create any other purchasing document except for delivery schedule line via Transaction ME38
or MRP running (with the appropriate setting of Source List).
3. Delivery Schedule line items are created subject to your specific requirement.
4. Can create both Scheduling Agreement with and without Release Documentation (subject to the Document Type
LP or LPA) with the selection of either FRC or JIT delivery schedule.
5. Either time-dependent or time-independent conditions can be created subject to the customizing in the Document
Type of the Scheduling Agreement.
6. Item Category 'M' and 'W' can not be used
Regards
Ashu

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