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Former Member

Quantity Contract

Hi,

Can any one tell me what are the benifits of quantity contract

Jay

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3 Answers

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    Former Member
    Sep 24, 2008 at 08:07 AM

    Hi,

    Contracts

    Two Types-Quantity contract and value contract

    u2022 The contract does not contain any schedule line, delivery quantities or delivery date. It is valid for a certain period of time.

    u2022 Release orders are created with reference to a contract. Schedule lines are created in the release order when it is placed. You can choose materials directly or by exploding an assortment module (list of valid materials-Master data for product).

    u2022 You can create release order in any currency and the total value is updated in the currency of the contract.

    u2022 The value of release order is compared with value still open in the contract. You can define how the system responds when this value is exceeded (sales document type)

    u2022 A value contract defines that your customer agrees to purchase a fixed total value (target amount) of goods and services during the defined period.

    u2022 You can have partner function AA as optional sold to party and AW as optional ship to party in the standard system.

    u2022 You can maintain contract data at both header and item level in the sales document.

    Thanks

    Bhushan

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    Former Member
    Sep 24, 2008 at 08:11 AM

    Outline Agreement (Quantity Contract)

    Purpose

    This document provides you with a detailed description of all steps for the Procurement Contract scenario. The target group is the end users of your enterprise. Finally, this document guides you through the entire scenario and is suitable as training material.

    Use

    Basic agreements are long-term agreements with the supplier over the supply of materials or the contribution of services to determined conditions within a certain period. The basic agreements are differentiated as follows:

    u2022 Quantity contracts (definition of a delivery volume by supplier materials to those conditions were agreed upon firmly)

    u2022 Value contracts (definition of a value boundary for the material procurement according to the agreed upon conditions)

    u2022 Delivery schedules (agreed upon points of delivery time and conditions for supplier materials firmly)

    Process Flow

    A basic agreement between the purchase organization and a supplier is concluded in form of a quantity contract. In this contract, the material (or material group) and the quantity is defined. The quantity contract is assigned as source of supply based on a purchase requisition. In the next step, the purchase requisition is transferred into a purchase order. The invoice verification takes place after entry of the incoming goods.

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    Former Member
    Sep 24, 2008 at 08:11 AM

    Hi there,

    I dont see any specific advantage of quantity contarcts compared to others.

    Quantity contracts for eg are created that customer buys 1000 items of material X between Jan 2008 - Dec 2008 irrespective of the value of the order. He may order as many items as he wishes in single order within the 1000 items limit.

    Pls refer http://help.sap.com/erp2005_ehp_03/helpdata/EN/70/a7853478616434e10000009b38f83b/frameset.htm

    for further info.

    Regards,

    Sivanand

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