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Hi, You may consider PO as a contract but it's short term contract which is valid for 1 transaction only. But outline agreement is a long term contract. It may be value contract or quantity contract within a defined span of time. Each and every time you will require the material, you will need to raise a release order against that contract. Contracts help a lot for those materials which undergoes price fluctuation frequently. On the other hand, Scheduling Agreement is also a long term contract but here you don't need to raise release order each time. You just need to send delivery schedule against that scheduling agreement. Hope this will help you. Thanks. On 9/3/10, MGillespie via sap-log-mm <sap-log-mm@groups.ittoolbox.com> wrote: > > Posted by MGillespie > on Sep 2 at 3:50 PM My company is in the midst of implementing SAP. In > our old ERP system, almost of of our purchase were treated as contracts > because of the way that system worked. What I would like to know is what are > the basic criteria for deciding when you should use an Outline Agreement, a > Scheduling Agreement or just a simple Purchase Order? | __.____._ Copyright © 2010 Toolbox.com and message author. Toolbox.com 4343 N. Scottsdale Road Suite 280, Scottsdale, AZ 85251 | | Related Content White Papers In the Spotlight _.____.__ |