centrally agreed contract (MM-PUR)

Purchasing (MM-PUR)

A contract negotiated by a purchasing organization for an entire corporate group (represented by a "client" in the SAP system).

Such corporate contracts enable more favorable conditions to be obtained (through bulk buying) than if individual organizational units within the group enter separate contracts.

A centrally agreed contract is involved if:

• One single purchasing organization procures for an entire corporate group.
• A reference purchasing organization makes a contract available to other purchasing organizations linked to it, so that the latter can issue release orders against that contract.