SAP SD: Scheduling Agreement Vs Contract

The scheduling agreement contains details of a delivery schedule but a contract just contains quantity and price information and no details of specific delivery dates

scheduling agreement

What’s the condition for us to choose schedule line or order? 

Both of them contains schedule line, price, quantity.

There are a couple major differences:

(1) – scheduling agreement 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 surprise you with a large order qty, where your lead times are 5+ days. The forecast qtys they sent last week should account for this.

Scheduling Agreement

(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.

scheduling 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, cum 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.

Also See: Step by Step Asset Accounting Configuration

Recommended Reading For You

  • What is Scheduling agreement in SAP MM?What is Scheduling agreement in SAP MM?The scheduling agreement has similarities with a quantity contract: it states the target quantity of a material to be ordered from a vendor over a period of time, and the price. For each […]
  • What is Schedule Line Categories and Schedule Agreements in SAP?What is Schedule Line Categories and Schedule Agreements in SAP?SAP Schedule Line Categories, Every time SAP System can copy the those listed items of sales document which will have schedule line. The normal scenario Schedule lines contain all the […]
  • What is outline agreement in SAP?What is outline agreement in SAP?This post explains general background information on the "outline agreements" (which, outside the SAP System, may also be referred to as blanket, master, framework or umbrella agreements) […]
  • What is Contract in SAP?What is Contract in SAP?A contract is a longer-term agreement with a vendor (one of the two forms of "outline agreement" in the SAP system) to supply a material or provide a service for a certain period of time. […]
  • What is Partner Functions in SAP SD?What is Partner Functions in SAP SD?Partner functions is two-character identification key that describes the people and organization with whom you do the business, and who are therefore involved in transaction. Here is some […]

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: