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Contract or agreement limited by quantity not time

Former Member
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We want to optimise pricing for some materials by placing a large order for a fixed quantity, which will be pre-produced by the supplier and we then call off against this 'contract' until the volume is depleted, and then move to the next 'contract'. How long this will take depends on usage and cant be precisely predicted.

We have tried using contracts, but can only make these work for a fixed time period, rather than the flexible time but fixed quantity situation we have.

This seems like it should be a common requirement - does anyone have any ideas how to manage this in SAP?

Thanks for any help you can give

Liz

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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yes you can make quantity contract but it is also time bound. There no other option is standard SAP setting.

It is not possible to make with ABAP development.

Answers (4)

Answers (4)

Former Member
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Absolutely, create item one for the first quantity and batch. Then, when that is finished, create a new item (or create a new Scheduling Agreement).

If you stick with the same Sched.Ag. you have all your history in one place (but have more potential for invoices to be posted to the wrong line). There is, per line, a reconciliation quantity and date field setting you could use. At Header level you have the 'standard' Contract date and quantity setting options.

Setting the price per item you could do with a bog standard PO or a Scheduling Agreement.

One wrinkle is you need to create a Delivery Schedule, however, you can simply create a single line Delivery Schedule per Sched.Ag. item or as you call off, simply update the delivery schedule accordingly, this has a useful control feature regarding dates too e.g. can not deliver ahead of schedule.

Set the over delivery tolerance to zero (and make the over delivery message an error) on a given item to ensure each batch is clearly delineated. Do this whether you work with std POs or Sched.Ags.

Regards,

Nick

Former Member
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Hi All

Thanks for your ideas so far. I've put my thoughts and a few more queries below, can you let me know if my assumptions are valid and whether there are any other avenues worth trying?

Consignment PO - the stock is not consignment stock, it is held at the supplier once produced until we call it off in small batches, and we need to be able to generate call offs on a 2 week lead time to egt the stock as we need it.

Scheduling agreements - We agree a price for a fixed volume with the vendor. If we use a scheduling agreement will it enable us to do this, and then when the volume is used move to the next price/batch?

'Normal POs' with multiple deliveries - I think we could use normal POs with multiple deliveries, but we would lose the flexibility to use MRP to generate the call offs as and when it sees the need, the deliveries would need to be fixed at the time the PO was generated. Is there any way round this?

Many thanks

Liz

Former Member
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Scheduling Agreements sound like they would be better suited.

http://help.sap.com/saphelp_47x200/helpdata/en/75/ee0f8155c811d189900000e8322d00/frameset.htm

Or you could just put a 31.12.2099 end date on your outline Agreements.

Regards,

Nick

Former Member
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If vendor produces and keeps ready for you after your order. And if you pay him after you consume, why don't you go for standard consignment purchase order. Vendor will manufacture and give you. You can consume that then Pay.

or Go for scheduling agreement with required quantity and huge validity period and mainatain sourcelist also. Whenever you want material you can create schedule line manually or MRP can also create directly

regards

Antony