Scheduling agreements in SAP MM: Understanding the Basics

Scheduling agreements are an essential feature of the SAP Material Management (MM) module, as they help streamline the procurement process by enabling the automatic generation of purchase orders based on predefined schedules. In this article, we’ll delve into the basics of scheduling agreements in SAP MM and explore the different types of scheduling agreements and their key features.

What is a scheduling agreement?

A scheduling agreement is a long-term purchasing agreement between a buyer and a vendor that outlines the terms and conditions of the procurement process for a specific period. The agreement is based on a pre-determined schedule, which entails the delivery of a predetermined quantity of goods or services at a specified time over the life of the agreement. The scheduling agreement saves time and streamlines the procurement process by eliminating the need to create individual purchase orders for each delivery.

Types of scheduling agreements

There are two types of scheduling agreements in SAP MM:

1. Quantity contract: A quantity contract is an agreement between the buyer and vendor that specifies a pre-determined quantity of goods to be delivered within a particular time frame. The delivery of goods is not dependent on any specific schedule. The vendor has the flexibility to deliver the goods as per their convenience within the agreed-upon time frame.

2. Value contract: A value contract is an agreement that specifies the total value of goods to be procured within a specific time frame. The delivery of goods is not dependent on any specific schedule. The vendor has the flexibility to deliver goods as per their convenience within the agreed-upon time frame.

Key features of scheduling agreements

A scheduling agreement in SAP MM includes the following key features:

1. Validity Period: The validity period of the agreement determines the duration of the contract. The contract is valid only within this period.

2. Schedule Lines: Schedule lines denote the delivery schedule agreed between the buyer and vendor. It includes the quantity of goods to be delivered and the delivery date.

3. Outline agreements: Scheduling agreements are outline agreements and are not binding on the buyer or vendor until the schedule lines are released.

4. Release and delivery: The buyer can release the schedule lines to generate purchase orders automatically. The vendor delivers the goods based on the schedule lines in the purchase order.

Conclusion

Scheduling agreements in SAP MM are an efficient way to streamline the procurement process for buyers and vendors. Understanding the different types of scheduling agreements and their key features can help you establish a successful long-term relationship with your vendors. By leveraging the power of scheduling agreements, you can increase your organization`s efficiency and save time and resources in the procurement process.