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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.
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).
A contract value is essentially the price tag that a government contract is worth in terms of dollars. Government contracts can have values ranging anywhere from several hundred dollars to multi-million dollars.
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.
Calculate total contract value by adding all the total recurring revenues for the contract term, plus fees and the sum of the subscription fees multiplied by the total number of subscription payments.
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.
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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