Scheduling Agreement in SAP MM: A Comprehensive Guide
SAP MM (Material Management) is a widely used module of the SAP ERP system. It facilitates the management of various procurement processes, including purchasing, inventory management, and materials planning. One of the crucial processes in SAP MM is the scheduling agreement, which is used to manage the procurement of materials on a regular basis. In this article, we will discuss the scheduling agreement in SAP MM and its key features.
What is a scheduling agreement?
A scheduling agreement is a long-term purchasing agreement that specifies the terms and conditions for the procurement of materials or services over a predefined period. It is useful when businesses have a consistent demand for materials over time. A scheduling agreement contains information such as the delivery schedule, pricing, and quantities to be procured. The agreement is created between a buyer and a supplier and is valid for a specific period.
How does scheduling agreement work in SAP MM?
In SAP MM, a scheduling agreement is created using transaction code ME31L. The buyer enters the necessary information such as the material number, vendor details, delivery schedule, and pricing conditions. The scheduling agreement can be created for a specific period, such as a month, quarter, or year.
Once the scheduling agreement is created, the system generates a delivery schedule that outlines the dates on which the materials are to be delivered. The buyer can also specify the quantity of materials to be delivered on each date. The scheduling agreement can be modified, and delivery dates can be added or changed based on the changes in demand.
Key features of scheduling agreement in SAP MM
1. Delivery Schedule: The delivery schedule is a critical component of the scheduling agreement. It specifies the dates on which the materials are to be delivered and the quantities to be delivered on each date. The delivery schedule can be easily updated based on changes in demand.
2. Pricing Conditions: The pricing conditions in the scheduling agreement define the terms of pricing for the materials to be procured. The buyer can specify the pricing conditions, such as the price per unit, discounts, and taxes, in the scheduling agreement.
3. Release Schedule: The release schedule is used to manage the delivery of materials. The buyer can release the delivery schedule to the supplier to ensure timely delivery of materials.
4. Consumption-Based Planning: The scheduling agreement can be linked to consumption-based planning, which allows the system to automatically create purchase requisitions based on the material consumption.
Conclusion
In summary, scheduling agreement is a critical process in SAP MM that facilitates the long-term procurement of materials or services. It helps businesses to manage their material procurement process efficiently and effectively. The scheduling agreement contains important information such as delivery schedule, pricing conditions, and release schedule. SAP MM provides a robust platform to manage scheduling agreements, enabling businesses to streamline their procurement processes.