A contract is a type of outline purchase agreement againstwhich release orders (releases) can be issued for agreed materials or services as and when required during a certain overall time-frame.
A contract is a longer-term agreement with a vendor to supply a material or provide a service for acertain period of time.
There are two types of contract:
Quantity Contract:
In this type of contract overall value is specified in terms of total quantity of material to be supplied by vendor.
Value Contract:
In this type of contract overall value is specified in terms of total amount to be paid for that material to the vendor.
Quantity Contract (T-code: ME31K)
Provide name of vendor, purchasing organization, purchasing group and plant along with agreement date.
In agreement Type enter MK forquantity Contract.
Fill in all necessary details like agreement validity start date, end date
For Material 3077, Mentioned quantity as 100
Purchase Order ME21N
In ME21N Screen select contract document in document overview. Drag appropriate contract document into basket enter required quantity. If i enter quantity as 110 it shows warning message quantity (i.e) exceed more than quantity contract
Value Contract (T-code: ME31K)
Provide name of vendor, purchasing organization, purchasing group and plant along with agreement date.
In agreement Type enter WK for value Contract
Fill in all necessary details like agreement validity start date, end date along with Target Value as 50000 mentioned
Purchase Order ME21N
In ME21N Screen select document in document overview. Drag appropriate document into basket enter required quantity. If we enter value more target value means Value exceed more than value contract already , shows warning message as given below.
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