Scheduling Agreements Sap Mm

Scheduling Agreements in SAP MM: A Guide for Procurement Professionals

As a procurement professional, you`re likely already familiar with the process of creating purchase orders to procure goods and services. However, there may be instances where you need to procure a regularly needed item in larger quantities, but you don`t want to create multiple purchase orders. That`s where scheduling agreements in SAP MM come in.

What are Scheduling Agreements in SAP MM?

Scheduling agreements are long-term procurement contracts between a purchaser and a vendor. They allow the purchaser to procure a material or service in larger quantities over a period of time without having to create multiple purchase orders. Instead, the scheduling agreement serves as a framework agreement that outlines the terms and conditions of the procurement relationship for a specific period.

Scheduling agreements can be either quantity-based or value-based. Quantity-based agreements specify a fixed quantity of a material or service to be procured over a period of time. Value-based agreements, on the other hand, specify a fixed value of a material or service to be procured over a period of time.

How to Create a Scheduling Agreement in SAP MM

Creating a scheduling agreement in SAP MM is straightforward. Here`s a step-by-step guide:

1. Launch the SAP MM system and navigate to the Scheduling Agreement transaction using transaction code ME31L.

2. Select the appropriate vendor for whom you wish to create the agreement.

3. Enter the validity period of the agreement, which specifies the period during which the agreement is valid.

4. Select the agreement type (either a quantity-based agreement or a value-based agreement).

5. Enter the material number of the material or service you wish to procure.

6. Enter the quantity or value of the material or service you wish to procure.

7. Define the delivery schedule, which specifies the dates and quantities of each delivery.

8. Define the pricing conditions, which specify the prices to be paid for the material or service.

9. Save the agreement.

Advantages of Using Scheduling Agreements in SAP MM

Using scheduling agreements in SAP MM offers several advantages over creating multiple purchase orders. Here are a few of them:

1. Better control over procurement processes: Scheduling agreements help procurement professionals gain greater control over the procurement process. By having a long-term contract in place, they can plan and forecast more effectively, reducing the risk of stockouts or delays in delivery.

2. Lower procurement costs: With a scheduling agreement in place, procurement professionals can negotiate better prices with vendors, leading to cost savings in the long run.

3. Streamlined procurement process: Scheduling agreements simplify the procurement process by reducing the number of purchase orders that need to be created and processed.

Conclusion

Scheduling agreements are a powerful tool for procurement professionals looking to optimize their procurement processes. By creating a long-term contract with a vendor, they can gain greater control over the procurement process, reduce costs, and streamline operations. With SAP MM, creating scheduling agreements is a straightforward and easy process that any procurement professional can master.