Additional Process Information (SAP Library - Materials Management (MM))

Additional Process Information

About Outline Agreements

An outline agreement is a long term arrangement with a vendor regarding the supply of materials or the performance of services according to predetermined terms and conditions. Outside the SAP System, outline agreements are also referred to as blanket, master, framework, or umbrella agreements. In MM Purchasing, outline agreements are subdivided into contracts and scheduling agreements. Outline agreements may be subject to a release (approval or clearance) procedure.

How Outline Agreements Are Structured

As with other purchasing documents, an outline agreement consists of a document header and one or more items:

Document header - contains information specific to the entire agreement (for example, vendor information and conditions applicable for all items).

Items - contain information specific to the material or service. Example

Statistics on ordering activities for the item

Quantity or price of the item

Pricing conditions, such as quantity discounts and surcharges

Conditions entered at the item level will override the header level conditions for that item. For example, a 5% discount might apply to all items ordered from this vendor, but one particular item might get a 10% discount. In this case, 5% would be entered at the header level, but 10% would be entered for the specific item at the item level.