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All About Outline agreement

Outline agreement is a long-term purchase agreement between


vendor and customer. Outline agreement are two types:

1. Contract
2. Scheduling Agreement

Contract The contract is draft agreement, and they do not include


delivery dates for the material.  Contract is two types :

1. Quantity Contract: This  contract  considered to fulfilled when


the company  supplied  an agreed total quantity of materials
against the contract.
2. Value Contract: This  contract  considered to fulfilled when the
company supplied agreed total value of material against the
contract.

Quantity Contract

Step-1

1. Enter T-code ME31K in the command field.


2. Enter Vendor / Agreement Type (MK- Quantity Contract) / Agreement Date.
3. Enter Purchase Org.,  Purchasing Group in organizational data.

Step-2 Enter Validity End date of contract  in header data screen.

Step-3

Enter Material ,Target quantity (A quantity for which quantity contract being created) and net price
Click On Save Button.
A message as   will be displayed. 

2. Scheduling agreement  The scheduling agreement is a long-term purchase agreement with the vendor in
which a vendor  is bound for supplying of material according to predetermined conditions. Details of the
delivery date and quantity  communicated to the vendor  in the form of the delivery schedule.

Step-1

1. Enter T-code ME31 in command field.


2. Enter Vendor / Agreement Type (LP- Scheduling agreement) / Agreement Date.
3. Enter Purch. Organization / Purchasing group.

Step-2 Enter Validity End Date in header screen.

Step-3 Enter Material / Target Quantity / Net Price / Plant in Item Overview Screen.

Step-4 Enter Exclusion in next screen .


Step-5 Get back previous screen item overview and click on save button. A message as below -

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