Answer / jobin .j.singh

CONTRACT OUTLINE AGREEMENT
1.create the centrally contract(cross-plant) where you can
maintain different pricing for each & every plant.
2.you have to create release order w.r.t.outline agreement.
3.no detailed delivery schedule lines can be made in
release order.
4.no release documentation is created.
5.only time dependent conditions can be created.
6.some item category M or W can be use.

SCHEDULING AGREEMENT
1.plant location must be entered.
2.we do not have to create any other purchasing document
except for delivery schedule line.
3.delivery schedule lines items are created sub. to your
specific requirement.
4.can create both scheduling agreement with or without
release doc.
5.either time dependent or time independent conditions can
be created.
6.item category M or W can not be used.

Answer / javidhkhan

Contract is a long term outline agreement between vendor and ordering party over a predefined material or services over certain frame work of time

Scheduling is a long term outline agreement between vendor and ordering party over a predefined material or services procured on predetermined dates over a frame work of time

Answer / girish

The contract does not contain specific delivery dates or the individual delivery quantities. These are specified subsequently in release orders issued against the contract when customer requires them.
Characteristics of contract:
 Contracts are outline agreements. They do not contain details of the delivery dates for each of the items.
 To inform vendors of which quantity you need for which date, you enter contract release orders for a contract. A release order is a purchase order that references a contract.
 If a purchasing information record with conditions exists for the material and the vendor, the system automatically suggests the net price according to these conditions when you create the contract item.
 Contract validity period is defined in the contract header as the validity period
 For each item in a quantity contract, you define the target quantity and purchase order conditions.

Scheduling agreement
Details of the delivery date and quantity communicated to the vendor in the form of the delivery schedule.
Characteristics of scheduling agreements:
 Before creating a scheduling agreement, the purchasing user must define account assignment, purchasing organization, and purchasing group.
 A scheduling agreement can be created for subcontracting, consignment, and Third Party.
 Valid material number or account assignment category is mandatory for creating scheduling agreement
 Details of delivery dates and quantities are communicated to the vendor in the form of delivery schedules.
 Delivery schedule lines can be created with or without reference to a purchase requisition. Schedule lines can also be generated automatically using the MRP system.

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