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2020-11-10

Set Quantity Contract Feature

The Set Quantity Contract feature simplifies your ordering and contract management processes. With this tool, you can establish clear agreements based on fixed quantities, ensuring predictability and control over your inventory and expenses.

Key Features

Define specific quantities for each contract

Automate order placements based on set agreements

Track usage against predefined quantities

Receive alerts for low stock levels

Easily adjust contracts as business needs change

Potential Use Cases and Benefits

Manufacturers can manage bulk orders efficiently

Retailers can maintain stock levels without overordering

Frequent purchasers can lock in prices and avoid market fluctuations

Businesses can enhance supplier relationships through consistent ordering

This feature addresses common challenges such as fluctuating demand and unpredictable supply chains. By setting clear quantity agreements, you gain peace of mind knowing that your inventory stays aligned with your business needs.

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What is quantity contract?

A quantity contract is an agreement that your customer will order a certain quantity of a product from you during a specified period.

What is value 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).

What is total contract price?

Definition of Total Contract Price Total Contract Price means the cumulative amount of all Monthly Purchase Amounts owed under a Monthly Purchase Plan, or the Total Contract Price set forth in a Lump Sum Contract. Based on 3 documents 3.

What is quantity contract in SAP SD?

Quantity Contract. A quantity contract is essentially an agreement that your customer will order a certain quantity of a product from the company during a specified period. The contract contains basic quantity and price information but no schedule of specific delivery dates and quantities.

How do I create a contract in SAP MM?

Path to Create Contract Step 3 Fill in all the necessary details such as the agreement validity start date, end date, and pay terms (i.e. terms of payment). Step 4 Provide material number along with the target quantity. Click on Save. A new Contract will be created.

How do you create a contract in SAP SD?

Choose To create with reference on the initial screen. In the Sales document menu, choose Sales document Create with reference To contract. Assign an order item to a contract retrospectively.

What is the difference between value contract and quantity contract?

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.

What is a value contract?