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Difference between Scheduling Agreement & Contract

Former Member
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Hi Friends,

What is the difference between Scheduling Agreement & Contract? Please explain with examples.

Thanks & Regards

Saeed Arif

Accepted Solutions (1)

Accepted Solutions (1)

former_member581212
Active Contributor
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hi,

The main example is:

With schedule agreement, in the delivery schedule we can any time extend the items, but in the contract we always have to make the new contract and as per this the new contract release order...So due to this you save the big processing time by having extended delivery schedule lines...

Hope it helps..

REgards

Priyanka.P

Answers (6)

Answers (6)

Former Member
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Dear Arif,

+Scheduling Agreement+

A form of outline purchase agreement under which materials are procured on predetermined dates within a certain time period.

+Contract+

In the MM Purchasing component, a contract is a type of outline purchase agreement against which release orders (releases) can be issued for agreed materials or services as and when required during a certain overall time-frame. (In the literature and in practice, similar concepts may also be referred to by a number of other terms, such as "systems contract", "blanket order agreement", "blanket contract", and "period contract".)

Regards...Sri

Former Member
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Hi Friends,

Thank you for your precious tips.

With Regards

Saeed Arif

Former Member
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Hi,

Contract: is an agreement between the company & sold-to-party (customer)

It is of 2 types Quantity Contract & Value Contract. Every contract has a validity period. In quantity contract you have an agreement about the quantity to be sold to customer and you can have special prices for the contracts. In general any customer enters into contract for a price benefit and from company's prospective it will assure the company that customer would not go to competitor.

It is created in SAP using VA41. Every contract has a contract no and when ever customer wants material he will create a sales order (called Release Order) and it is created with ref to contract no. all the release orders are updated in contract document flow. with in the contract validity period customer can create a no of release orders till the target contract value is reached. if the target value is reached you can extend the contract or close it as per your requirement.

Scheduling agreement: is also a contract between company and sol-to-party. the difference here is in scheduling agreement customer will tell in contract itself what product he wants, what quantity he wants and when the delivery is to be made. so in scheduling agreement only you have schedule lines created and when the delivery dates is reached you can directly create a delivery with ref to contract and no separate sales order (release orders) are required for this type of contracts.

Regards,

Abhee.

Former Member
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Hi,

In Scheduling Agreement we maintain quantity and schedule lines (delivery dates).

Contract we do not maintain schedule lines.

This is the only main difference between two.

Regards,

Chandra

Former Member
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Hi,

Both are outline agreements.

The main diffrence is the volume of documents generated in contract.But for SA the documents generated is less as SA itself is a PO.

But you have to create a release order for a contract(PO w.r.t. contract).

Moreover you have the option of creating JIT and FRC in SA, which cant be achieved in contract.

Contract advantageous in a scenario that its not plant specific and you can make use for 'N' no of plants assigned to the Poranisation.

Regards,

deepak

Former Member
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in contract u can not maintian any schedule wheras in schdule agrement u can and there some other differnces like

u dont have item category W and M in schedule agreement

please do nto give any points for the answer

Former Member
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Scheduling agreement is a legal Document, contract id not legal document its just and agreement.

when contracte is created its just an understanding between the parties, but needed to be converted to Purchase order or scheduling agreement.

contract may b either value or qty contract.

here in scheduling agreement u will give the schedule lines, when the material needed to be deliverd with delivery dates...