Outline agreements

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  • November 30, 2022
  • SAP
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Outline agreements 

An outline agreement is an everlasting purchase arrangement with a vendor. It analyzes the supply of materials or the achievement of services according to preplanned conditions. These conditions are valid for a certain interval of time and cover a prearranged total purchase quantity or value. Delivery dates aren’t fixed in the outline agreement. Instead, this information is stated separately in release orders (i.epurchase order) or delivery schedules depending on the type of agreement.

Outline Agreements

There are two types of outline agreements

  1. Contracts 
  2. Scheduling agreement 



Contracts are outline agreements with a vendor regarding the supply of materials or performance of services. These contracts don’t consist of details of the delivery dates for each of the line items. Preferably, delivery dates are enforced on the vendor via release orders (i.e purchase orders). Contracts are generated for long periods, for example, one year or two years etc., and purchase orders (POs) with reference to the contract, are generated as per requirement. The prices and various conditions are copied from the contract to the purchase order, goods are received with reference to the purchase order and finally, the invoice verification is carried out with reference to the purchase order.


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There are two types of contracts 


Quantity contract 

Quantity contract is based on quantity and is satisfied when the total agreed-upon quantity is provided by the vendor


Value Contract 

Value contract is based on total value and is satisfied when the total agreed-upon value is provided by the vendor.


We can create contracts (i.e. quantity or value contract) manually or with reference to  purchase requisition (PR) and request for quotation (RFQ) or quotation. The validity period is compulsory in the contract header. For each and every item in a quantity contract, We need to define the target quantity and item conditions. Are you looking for the Best SAP Training in Pune, then SevenMentor is one of them.


The following transaction codes are used to create, change, and display contracts (i.e. quantity as well as value contracts)

Transaction ME31K : Create contract (quantity/value contract)

Transaction ME32K : Change contract (quantity/value contract)

Transaction ME33K : Display contract (quantity/value contract)


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During the creation of a contract, We can select agreement type MK for a quantity contract and WK for a value contract. When we generate a contract for a purchasing organization the prices (i.e. conditions) are applicable for all of the plants within this purchasing organization. Although, We can also define plant-specific conditions in contracts.


Scheduling agreements 

A scheduling agreement is an outline agreement where a supplier provides the materials according to pre-agreed conditions. It is similar to a quantity contract only difference is that we can not create a purchase order in the scheduling agreement rather we will maintain the delivery schedule. The document type LP/LPA are used for creation of scheduling agreements


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The following transaction codes are used to create, change and display scheduling agreements as well as to maintain the delivery schedule 

Transaction ME31L : Create scheduling agreements

Transaction ME32L : Changescheduling agreements

Transaction ME33L : Display scheduling agreements

Transaction ME38 : Maintain the delivery schedule 



Prahlad Pawar

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