All About Outline agreement

Outline agreement is a long-term purchase agreement between vendor and customer. Outline agreement are two types:

1. Contract
2. Scheduling Agreement
   Contract The contract is draft agreement, and they do not include delivery dates for the material. Contract is two types :

1. Quantity Contract: This contract considered to fulfilled when the company supplied an agreed total quantity of materials against the contract.
2. Value Contract: This contract considered to fulfilled when the company supplied agreed total value of material against the contract.

Quantity Contract
Step-1

1. Enter T-code ME31K in the command field.
2. Enter Vendor / Agreement Type (MK- Quantity Contract) / Agreement Date.
3. Enter Purchase Org., Purchasing Group in organizational data.

Step-2 Enter Validity End date of contract in header data screen.

Step-3

• Enter Material ,Target quantity (A quantity for which quantity contract being created) and net price
• Click On Save Button.

A message as  will be displayed.

2. Scheduling agreement The scheduling agreement is a long-term purchase agreement with the vendor in which a vendor is bound for supplying of material according to predetermined conditions. Details of the delivery date and quantity communicated to the vendor in the form of the delivery schedule.

Step-1

1. Enter T-code ME31 in command field.
2. Enter Vendor / Agreement Type (LP- Scheduling agreement) / Agreement Date.
3. Enter Purch. Organization / Purchasing group.

Step-2 Enter Validity End Date in header screen.

Step-3 Enter Material / Target Quantity / Net Price / Plant in Item Overview Screen.

Step-4 Enter Exclusion in next screen .

Step-5 Get back previous screen item overview and click on save button. A message as below –