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Contract and scheduling aggrement

I created contract for quanity 1000 for a material, then created PR for 1000 qty in three parts i.e.2000, 2000, 5000 respectively and then created scheduling agreement with reference to contract and used the PR number to create the aggrement in it.

Please tell after above steps , is there a need to create PO , if yes then how to create PO by using scheduling agreement??

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  • Best Answer
    Apr 09, 2017 at 10:34 AM

    Your story looks inconsistent and not really real and this might be also causing your trouble with understanding the difference between a contract and its call offs, a schedule agreement and its delivery schedule and a standard purchase order with schedule lines.

    Contracts are long term agreements to fix a price over a longer period for a certain quantity. The buyer knows already that 50 tank trucks of 20 tons of palm oil are needed in a year. And he gets a better price when negotiating for this high quantity instead of individually negotiating a price for a 20 tons order. The date of the individual delivery is not know yet. You then create individual purchase orders and reference this contract (call offs).

    Schedule agreements is a special form of a contract where the focus is beside of price and quantity as well on the delivery dates. The scheduling agreement is a contract itself and does usually not need a reference to another contract. Such reference might be needed if your company makes central contracts for quantity and price for all its subsidiaries around the world and each subsidiary does then additionally create their specific delivery schedule agreement. You then release a delivery schedule (ME38) either for the entire schedule agreement at once or individually.

    For smaller quantities or individual business cases where you might want the goods to be delivered on a few different dates you only create a PO and split its quantity into a few delivery schedule lines. Here you don't do any extra call offs. Just straight forward all in one.

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