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Mar 29 at 10:35 PM

Framework order vs contract



I would like to understand what is the difference between contract and framework PO (FO document type) in terms of functionality. As far as I know, both have a start and end date, the difference is that in reference to the contract, you can create release orders, and in case of framework order, you have only one PO, which you use later for receiving invoices. Is this correct?

Apart from this, what are other differences? Why would I pick one over the other? Client is currently using framework orders that have an invoicing plan in the background for re-occuring services. Can it be done through contracts and release orders, or it’s better to do it using framework orders? That’s just one example.

Thank you