centrally agreed contract (SAP Library

centrally agreed contract

Purchasing (MM-PUR)

Contract negotiated by a purchasing organization for an entire corporate group (in the SAP System, represented by a "client").

Such corporate contracts allow more favorable conditions to be achieved through bulk buying than would be the case if individual organizational units of the group entered into separate contracts.

A centrally agreed contract is involved if:

A single purchasing organization procures for an entire corporate group.

A reference purchasing organization makes a contract available to other purchasing organizations linked to it, in order that the latter can issue release orders against that contract.