Material Requirements Planning (MRP) – 8
This article is in continuation of the articles of the series “Material Requirements Planning (MRP) – 1”, “Material Requirements Planning (MRP) – 2“, Material Requirements Planning (MRP) – 3, and “Material Requirements Planning (MRP) – 4“, “Material Requirements Planning (MRP) – 5“, “Material Requirements Planning (MRP) – 6 “ and “Material Requirements Planning (MRP) – 7 “
Contract
You can create a contract item manually without referencing another document, or by referencing a quotation or purchase requisition item. You can also reference an existing contract.
SAP MM Contract
Figure SAP MM Contract
The structure of a contract (or of an outline agreement generally) corresponds to that of other purchasing documents. A distinction is made between the document header and the document items. The document header contains information relating to the entire agreement (such as vendor data, agreement validity period, agreement type, and header conditions).
You enter the data specific to the good or service in question (such as material, agreed total purchase quantity, price, and texts) under each item of the contract.
You do not specify an individual delivery quantity or an exact delivery date. Contract items can relate to an individual plant or to all the plants of a purchasing organization. If the items are plant-independent, a centrally agreed contract is involved.
Figure SAP MM Contract Types
There are two contract types:
Quantity contract:
You choose this type of contract if the total quantity to be ordered over the duration of the agreement has already been agreed. The contract counts as fulfilled once an agreed quantity has been reached through the issue of contract release orders. In a quantity contract, you define, among other things, the target quantity and conditions of ordering for each item.
Value contract:
You choose this type of contract if the total value of all contract release orders is not to exceed a certain amount. The contract counts as fulfilled once an agreed value has been reached through the issue of contract release orders.
To inform the vendor which quantities you need on which dates, you enter purchase orders referencing the contract. Such POs are known as contract release orders or contract releases. (Outside SAP, they are also known as call-off orders or call-offs.) These contract release orders are recorded in the release documentation for the relevant contract item.
SAP MM Release Documentation
Figure SAP MM Release Documentation
The release (order) documentation lists the ordering activities for a contract item. The release documentation is automatically updated when a release order is created. It contains information including the number of the release order, the PO date, the order quantity, and the order value for all release orders issued against the contract. It is the basis for monitoring the contract.
The release documentation belongs to the statistical data on a contract item. To display the release documentation, select the desired contract item and choose Item→ Statistics→ Release (Order) Documentation.
You can enter contracts as sources of supply in purchase requisitions. This ensures that the outline agreement is referenced when the purchase requisition is converted into a purchase order. The resulting PO is a contract release order.
March 31, 2010
Tags: Activate Material Requirements Planning, Consumption-Based Planning, Materials management, Plant Parameters, SAP Executing the Planning Run, SAP Material Requirements Planning, SAP Materials Management, SAP MM Overview of Material Requirements Planning, SAP MRP, SAP Scheduling agreement Posted in: Material Management (MM), SAP Functional Modules
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