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Quantity Contract & Scheduling Agreement in SAP SD

AnushaMuttukundu
Explorer
a month ago
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770

Introduction:
In this Blog, we will take a deep dive into Contract Types in SAP SD, covering their significance, configurations, and real-time business applications. In SAP Sales and Distribution (SD), contracts play a crucial role in long-term business agreements between a
company and its customers. SAP SD offers different contract types, each catering to specific business needs. These include:
❖ Quantity Contract.
❖ Scheduling agreement.                                                                       

                                                                                               Quantity Contract:

Interpretation: It is a long-term agreement between a customer and a company for supplying goods of Particular Quantity within a specific validity period of time.
Business Scenario: Let’s Assume a customer commits to purchase 500 laptops and 200 Desktops from HP in a year, customer places sales order as much as till the target quality is referenced.
Configuration Steps:
Sales organization =HLSO, distribution channel =01, Division =01
Here Sales Document type = CQ.
Define sales document type in VOV8 and assign it to sales area using OVAZ
Item Category =KMN.
Define item category in VOV7 and do item category determination in VOV4 KMN = CQ+NORM
Scheduled lines = CN
Define schedule lines in VOV6 and do schedule Line determination in VOV5 CN = KMN+ND
Create Quantity contract using T-code VA41.

                                                             AnushaMuttukundu_0-1749668516057.png

 

 

 

 

                                      

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Now Save it.

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Create sales order in VA01 with reference to Contract, followed by delivery and Billing.

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Click on Create with Reference.

Go to Contract tab and Contract Number and Click on Copy.

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Go to VA43 to observe How much quantity is used out of target Quantity

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In the Above Screenshot , sales order has been created with 20 quantities for item 10 and an additional 20 quantities for item 20 and the system still allows the creation of sales orders with 30 quantities for item 10 and 10 quantities for item 20. Also, if we observe Overall Status is In Process which implies there still Order Quantity Leftover to create Sales Order’s w.r.to Quantity Contract.

Again, Trying to Create sales order with Reference to Quantity contract.

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Now Again Go to VA43 to observe How much quantity is used out of target Quantity Here, we can Observe that Contract is Fully Referenced and Overall Status is Completed.

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Go to VA43 and click on Document flow Icon, to see how many sales orders were created against this quantity Contract and their status

AnushaMuttukundu_12-1749669071996.png

As we observe, in the Document there are 2 Sales Orders have been Created as shown above and Overall Quantity Contract Status is Completed, since w.r.to Quantity Contract, Order Quantity have reached the limit.

                                                                                 Scheduled Line Agreement:

Interpretation: Scheduled Line Agreement is an agreement between a customer and an organization for supplying goods with predefined confirmed quantity and delivery dates.

Business Scenario: A customer from Walmart gets into a Scheduling Agreement with Apple for 600 MacBook Pros over the next six months  with deliveries of laptops on : 03/25/2025 of 150 quantities with deliveries of laptops on 05/24/2025 of 250 quantities with deliveries of laptops on 07/22/2025 of 200 quantities.

Configuration Steps:

Let’s say, Sales organization =HLSO, distribution channel =01, Division =01

Sales Document type = DS 

Define sales document type in VOV8 and assign it to the sales area using OVAZ

Item Category =LPN

Define item category in VOV7 and do item category determination in VOV4 LPN=DS+NORM

Scheduled lines = CN 

Defining scheduled lines in VOV6 and do schedule line determination in VOV5

CN=LPN+ND 

Assign Delivery Document Type and Billing document Type in VOV8.

Create Scheduling Agreement using T-code VA31 and go to Schedule lines Tab and Maintain Confirmed Quantity and Delivery Dates.

AnushaMuttukundu_13-1749669306391.png

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Click on Material.

Go to Schedule Line Tab and Fill the Details as per the Schedule Line Agreement.

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After creating a Scheduling Agreement using transaction VA31, you can proceed to create deliveries with reference to the agreement.

  • When creating deliveries, it is crucial to ensure that the delivery date selected is not earlier than the scheduled line-item dates maintained in the scheduling agreement.
  • The system will only allow delivery creation based on the confirmed quantities and their respective confirmed delivery dates.

For example, consider the following scheduled delivery dates and quantities:

April 25, 2025 – 4 unit , May 15, 2025 – 3 units , June 01, 2025 – 3 units

  • If you try to create a delivery with a date earlier than the scheduled line dates, the system will not allow it unless the quantities have already been confirmed.
  • If you provide a delivery date of May 15, 2025, the system allows you to create a delivery for the April 25 and May 15 schedule lines, assuming the quantities are confirmed and still open.
  • However, if you select the last confirmed delivery date (e.g., June 01, 2025), the system can allow the creation of a delivery including quantities from earlier confirmed dates (like March and May), assuming they are still open for delivery and not yet fulfilled.

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Make sure to give Relevant Schedule lines to create delivery otherwise system throws below Error.

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Create Deliveries with Reference to Scheduling Agreement in VL01N.

Now Create the delivery with 1st Schedule Line:

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Now Create the delivery with 2nd Schedule Line:

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Now Create the delivery with 3rd Schedule Line:

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To monitor the status of a Scheduling Agreement and the deliveries created with reference to it, use transaction VA33 and click on Document Flow to view the complete history and status.

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After creating the delivery, perform picking for each delivery document using VL02N by entering the picked quantity.

Once picking is completed, execute Post Goods Issue (PGI) to confirm that the goods have left the warehouse.

After PGI, create the billing document using VF01 with reference to the delivery to generate the invoice.

                                                                                     Conclusion:

Quantity/Value Contracts → You create a release order (i.e., sales order) referencing the contract.

Scheduling Agreements → You don’t create separate sales orders; instead, you maintain delivery schedules directly in the scheduling agreement.