Describe what is outline agreement.

Outline agreement are:

1. Contract
2. Scheduling agreement

CONTRACT - ME31K

Contract is a long term purchasing agreement with a vendor concerning the suppy of materials. These are valid for a certain period of time and cover a predefined total purchase quantity or value.  Here you can't schedule the lines.

Based on PR and RFQ, you also can create contract.

Create info record before create contract to maintain prices.

Two types of contract

1. Quantity contract
2. Value contract

Prerequisite for contract - T.code ME31K

Enter agreement type - MK quantity contract

Item category - standard

Second screen : enter validiy end

<SAVE> R/3 system generates contract document number XXXXXXX

Create PO against contract.

MIGO against PO
 

SCHEDULING AGREEMENT - T.code ME31L

Agreement type - LP

Item category - Standard

Create schedule lines - T.code ME38.

Here, do mention the different delivery dates for the material that are subject for the whole quantity which has been mentioned in the ME31L

SAP MM Reference Books:
SAP Material Management Interview Questions, Certification and Configuration Books

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SAP MM Purchasing

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SAP MM (Materials Management) Configuration Hints and Tips

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