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A quantity contract (sales document type CD) is basically an agreement stating that the customer will buy a certain quantity of a product in a certain time period. The contract contains general quantity and price information but no specifications of the delivery dates and quantities.
Contract is two types : Quantity Contract: This contract considered to fulfilled when the company supplied an agreed total quantity of materials against the contract. Value Contract: This contract considered to fulfilled when the company supplied agreed total value of material against the contract.
A value contract is a legal agreement with a customer that contains the materials and services that the customer receives within a specified time period, and for a value up to a specified target value. A value contract can contain certain materials or a group of materials (product hierarchy, assortment module).
The contracts are of two types: Value Contracts Use this type of contract, if the total value of all release orders issued against the contract shall not exceed a certain predefined value. But Scheduling agreement is a form of procurement plan under which the materials are purchased on dates within a certain time.
A quantity contract (sales document type CD) is basically an agreement stating that the customer will buy a certain quantity of a product in a certain time period. The contract contains general quantity and price information but no specifications of the delivery dates and quantities.
A scheduling agreement is a long-term outline agreement between the vendor and the ordering party over a predefined material or service, which are procured on predetermined dates over a framework of time. A scheduling agreement can be created in the following two ways Creating scheduling agreement.
A definite-quantity contract may be used when it can be determined in advance that (1) a definite quantity of supplies or services will be required during the contract period and (2) the supplies or services are regularly available or will be available after a short lead time.
An indefinite-quantity contract may be used when the Government cannot predetermine, above a specified minimum, the precise quantities of supplies or services that the Government will require during the contract period, and it is inadvisable for the Government to commit itself for more than a minimum quantity.
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