Difference between Scheduling Agreement & Contract
Hi Friends,
What is the difference between Scheduling Agreement & Contract? Please explain with examples.
Thanks & Regards
Saeed Arif
Hi,
Contract: is an agreement between the company & sold-to-party (customer)
It is of 2 types Quantity Contract & Value Contract. Every contract has a validity period. In quantity contract you have an agreement about the quantity to be sold to customer and you can have special prices for the contracts. In general any customer enters into contract for a price benefit and from company's prospective it will assure the company that customer would not go to competitor.
It is created in SAP using VA41. Every contract has a contract no and when ever customer wants material he will create a sales order (called Release Order) and it is created with ref to contract no. all the release orders are updated in contract document flow. with in the contract validity period customer can create a no of release orders till the target contract value is reached. if the target value is reached you can extend the contract or close it as per your requirement.
Scheduling agreement: is also a contract between company and sol-to-party. the difference here is in scheduling agreement customer will tell in contract itself what product he wants, what quantity he wants and when the delivery is to be made. so in scheduling agreement only you have schedule lines created and when the delivery dates is reached you can directly create a delivery with ref to contract and no separate sales order (release orders) are required for this type of contracts.
Regards,
Abhee.
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Difference between Scheduling agreement delivery schedule and PO delivery s
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Please tell the difference between the Scheduling agreement delivey schedule and PO delivery schdule.
In PO itself, we can give the delivery schedule.
Then what is the purpose of making scheduling agreement and maintain schedule in ME38?
RegardsHi,
Difference between Scheduling agreement and PO is while PO is a legal document whatever the delivery schedules you mention in PO, you are liable to pay for the entire qty in case of cancellation
In case of scheduling agreement, we have Firm Zone and Tradeoff Zone to provide some cushion against paying for the entire qty you have ordered
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Schedule lines that lie beyond the firm and trade-off zones fall within the planning zone (forecast zone) and are for rough guidance only, being without any commitment on the part of the orderer.
In case of PO if you want to cancel the order, you are liable to pay for the entire quantity, while in case of Scheduling agreement if you want to cancel the schedule and if the days fall in Firm zone or trade off zone or planning zone you have to pay only for raw materials or assembled products according to the above description
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HenryHi Henry
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Can anoybody tell me that what is the difference between scheduling agreement with release document and scheduling agreement w/o release document?
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Release nothing but creating output messages which we will send to vendor ( just like purchase order output message like printouts), by automatically ( without release, document type LP) or depending upon certain criteria i.e with release, document type LPA.
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The schedule lines of a scheduling agreement release contain finalized information for the vendor regarding quantities and delivery dates. The schedule lines are recorded with the aid of the release documentation and can thus be displayed and verified at any time. The release documentation enables you to see which schedules you transmitted to the vendor during the last two weeks, for example, and check the correctness of goods receipts against the relevant schedule lines.
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3. The releases (delivery schedules) are transmitted as messages to the vendor
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Provides the vendor with longer-term data regarding the quantities needed of a material and when delivery is required. In such schedules, the timing of delivery is usually expressed in terms of calendar months or weeks. Note: approximately equivalent EDI terms for the forecast delivery schedule are: planning schedule with release capability (ANSI 830) delivery schedule (message) (EDIFACT DELFOR), and delivery instruction (ODETTE DELINS).
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Provides the vendor with data on required quantities and desired delivery dates/times covering the near future.In such schedules, the timing of delivery is usually expressed in terms of specific days or even times of the day. Note: equivalent EDI terms for the JIT delivery schedule are: Shipping schedule: (ANSI 862) and Delivery just in time message (EDIFACT DELJIT).
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Can anyone of you please explain whats the main difference between Outline Agreement , Scheduling Agrrement and Contract and when & where are these used.
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BalajiHi
Contracts and SA...both are called as Outline Agreements...
the main Diff.bet Contracts and SA..
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2)Based on contract you cannot do GR Directly....ie)you have to separately send Release Order by referring Contracts and based on these release orders only you can do GR....
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Difference between contract creation and project creation
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thanks for your reply. We are currently implementing Oracle Projects in our company where our main business is construction works.
As you have said that a contract is a commercial agreement between the customer and the contractor. We get a Bill of Quantities(BOQ) along with the contract documents. In the BOQ all the different types of works for the project is defined along with the quantities which are known as BOQ Items. We have to quote our rates for the BOQ items. We generally perform an operation called Rate Analysis of these BOQ Items by assigning various quantities of resources that shall be required to execute each of the BOQ items. Thus we arrive at the cost of each BOQ items. Once the work gets executed, this BOQ happens to be the basis for invoicing or application to the client. So we create our budget based on the BOQ itself. We make our Business plan based on the items of this BOQ itself and also book the expenditure on these BOQ items.
Although we create Project plan using Primavera, there is no one-to-one correspondence between activities of the project plan and the BOQ items. So we cannot really create our budget based on the project plan.
So if we manage everything only on the basis of the BOQ items, we loose important project management related information like earned value management etc. And if we depent only on the Project plan we loose important cost related information.
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Can you kindly advice me about how to proceed ahead with our implementationso that we can use Oracle Projects optimally for our business.
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Exit for role determination via exit for scheduling agreement and contract?
Hi..
I have a requirement to fetch the agents in run-time for PO,PR,SCHEDULE AGREEMENT, CONTRACT..
For PO i am using EXIT : - M06E0005
For PR release i am using EXIT :- M06B0001
By using above 2 exits i am getting the agents at run-time...
Same way i need the EXIT for SCHEDULE AGREEMENT and CONTRACT..
if there is any EXIT for this please share with me..
Regards,
Imtiaz KhanHi Imtiaz,
Ideally you should have your agent determination logic in workflow itself instead of determinining them in EXIT.
Can you tell me why you are determining agents in exit and how you are making use of it ?
Also let us know how your workflows are getting trigger for all these documents.
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Ibrahim -
Reg. Scheduling agreements and contracts
Hi Dears
Please explain in greate details "what is schedule agreements" , "contracting", "How to use Scales in standard PO" and what is scales.
I couln't find the proper explanation in our Forums.
Bye
RajkumarHi
(1) - Schedule agreements allow you to have 2 different sets of schedule lines (VBEP-ABART). Standard SAP you should have two sets of tabs - of schedule lines. One Forecast & the other JIT. Forecast forwards the schedule lines to planning (seen in MD04) and JIT passes them to shipping (VL10). They can be identical or different. Typically these are used for component supplier customers (namely Automotive). The customer will provide you 4-10 weekly buckets (usually a
Monday date) of future forecast qtys. Also send you 1-2 weeks of individual FIRM ship dates - which are entered on the JIT. It comes down to the customer not knowing exactly what they need next week, but they don't want to suprise you with a large order qty, where your lead times are 5+ days. The forecasted qtys they sent last week should account for this.
(2) Cumulative Quantities are tracked and influence how the schedule agreement passes requirements to both forecasting and shipping. These qtys are sometimes requested by the customer on ASNs. Cumulative qtys reset at year end unless you've got a customer calendar or you've modified standard SAP user exits to not reset.
Schedule agreements are very nice when the customer sends EDI data (830s = forecast or 862s = JITs). Outside of that they can really cause trouble regarding daily maintenance, missing requirements, *** qty corrections, year end processing, etc.
One alternative would be to use customer independent requirements - entering the weekly, monthly forecasting qtys and entering standard sales orders (with or without multiple schedule lines) to represent the true firm qtys.
Refer below
http://www.sap-basis-abap.com/mm/gr-creation-for-schedule-agreement.htm
You can fix a price in the info record for a say qty from 1-100 price RS150 & if the order qty is 101- 500- the prices is 140 . Scales cannot be used directly in PO but can be pulled into the PO from various master data like info record, quota arrangement.
For further details refer sdn thread below
Contracts
scheduling agreements
Message was edited by:
SHESAGIRI.G -
Outline agreement or automatic schedule from scheduling agreement
Hello Master's,
Plz find the below workflow which will brief u abt the complete process;-
1.User raises indent(me51n) and then releases(me54n) else as per our MRP, indent/PR gets generated automatically.
2. Standard Practice is that we invite offers, negotiate and place order (me21n) else f we have rate contract for any item we go for direct ordering (me21n) and then get it released (me29n)
For around 20-30k material codes we have rate contract finalized with various suppliers for a period of time.
When we find any indent/pr falling into this category, we dont invite offer but go for ordering as per the finalized price. The price is maintained in excel or pdf format.
Problem is we want to map material codes with vendor and rates associated with the contract.
For this either we have to go for outline agreement(me31k) of scheduling agreement(me31l) so that whenever any indent/PR gets generated in this category, order/delivery schedule will be generated automatically in SAP.
Points in which i need help from you:-
1. How to generate automatic po from outline agreement or automatic schedule from scheduling agreement.
2. complete understanding of the difference between outline agreement and scheduling agreement.Hi Nilson,
The data contained within the global outline agreement is distributed as purchasing contracts or scheduling agreements to the backend systems of the release-authorized purchasing organizations of the relevant corporate group. These purchasing organizations can then use the purchasing contracts or scheduling agreements according to the terms agreed centrally within the global outline agreement.
For more details.
http://help.sap.com/saphelp_srm50/helpdata/en/42/f93dfd975f3ee6e10000000a1553f7/frameset.htm
Nishant
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