SAP MM

OUTLINE AGREEMENTS
BY – Om Bhakare
CONTRACTS:
A contract is a long term agreement between a vendor and an ordering
party over a predefined a material or service over a certain framework of
time. There are two types of contracts:

 Quantity contract: In this this type of contract, the overall value

is specified in terms of the total quantity of material to be supplied
by the vendor.

 Value contract: In this type of contract, the overall value is

specified in terms of the total amount to be paid for that material to
the vendor.

PATH: Logistics >> Materials Management >> Purchasing >>

Outline agreement >> Contracts >> Create

Important T-Codes:

 ME31K : To create contracts

 ME32K : To edit contracts
 ME33K : To display contracts
 Procedure :

1) Enter T-Code and fill details ( Vendor, agreement type,

purchasing organization, Purchasing group )

2) Fill in the necessary details in header data.

[Agreement validity, start date, end date, pay terms]
3) Fill out details in Item overview.
[Material number, target quantity, Net Price]
4) Check and save.
5) Create Purchase order with respect to Quantity Contract.

6) Check & Save

7) Go for MIGO :

8) Material Posted :
9) Check Contract :