Hello SAP experts!
What is the difference between Quantity contract and Value contract? Is my understanding (please see below) correct?
>>A quantity contract is an agreement that your customer will order a certain quantity of product from you during a specified period. The contract contains basic quantity and price information but no schedule of specific delivery dates and quantities
>>Specific to certain quantity of materials and price (100 boxes of Material A for 100 usd/box)
>>Call-off orders with reference to the contract WILL NOT BE AFFECTED by any price movements made outside the contract.
>>A value contract is a legal agreement with a customer that contains the materials and services that the customer receives within a specified time period, and for a value up to a specified target value. A value contract can contain certain materials or a group of materials (product hierarchy, assortment module).
>>Can contain group of materials/certain materials but not necessarily have a fixed price (Group Material XYZ up to a total value of 100,000 usd)
>>Call-off orders with reference to the contract WILL BE AFFECTED by any price movements made outside the contract, it will just eat up the contract value.
Appreciate your help.