J50 - Procurement - Contract

Purpose

This building block contains the functions for creating an outline agreement (quantity contract).

Function List

Basic agreements are long-term agreements with the supplier over the supply of materials or the contribution of services to determined conditions within a certain period.

The basic agreements are differentiated as follows:

• Quantity contracts (definition of a delivery volume by supplier materials to those conditions were agreed upon firmly)
• Value contracts (definition of a value boundary for the material procurement according to the agreed upon conditions)
• Delivery schedules (agreed upon points of delivery time and conditions for supplier materials firmly)

Key Points

Between the purchase organization and a supplier a basic agreement is concluded in form of a quantity contract. In this contract the material (or material group) and the quantity is defined. Based on a purchase requisition; the quantity contract is assigned as source of supply. In the next step the purchase requisition is transferred into a purchase order. After entry of the incoming goods the invoice verification takes place.

Scenario Documentation

Scenario Overview

Configuration Guide

Development Master List

Business Process Procedure