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Scheduling Agreement
A Scheduling Agreement is a long-term purchase agreement between a
company and a vendor for the supply of materials over a period of time.
It is a form of an Outline Agreement under which the materials are procured on
predetermined dates with a certain Period.
Delicery of the total qantity of the Material specified in a scheduling agreement
item is spread over a certain period in a delivery schedule, consisting of lines
indicating the individual quantities with their corresponding planned delivery
dates.
Advantages of Schduling Agreement
➢ Reduces the need for repeated purchase order creation.
➢ Automates call-off deliveries based on the predefined schedule.
➢ Reduces overstocking and stockout situations.
➢ Enables better price negotiation due to long-term commitment with vendors.
➢ Goods receipt is simplified since deliveries follow the agreed schedule.
➢ Reduces invoice mismatches, as prices and terms are pre-defined.
➢ Enables tracking and monitoring of vendor performance.
Types of Schduling Agreement
1. With Release Documentation (LPA)
2. Without Release Documnetation (LP)
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With Release Documentation (LPA):
In With Release Documentation you can change them in any way as you wish. The
schedule lines are stored in the system are not transmitted to the vendor until you
explicitly create a scheduling agreement release.
Without Release Documentation (LP):
In Without Release Documentation, The Scheduling Agreement & Scheduling
lines are iimediately transmitted to the Vendor at the moment you save them.
There is no release documentation in this case.
Scheduling Agreement Process flow
Material &
Vendor Master
Scheduling
Agreement(LP or
LPA)
ME31L
PR, RFQ &
Contract(Optional)
ME9L
ME9E
Invoice
MIRO
Goods Receipt
MIGO
Dlivery Schedule
Lines
ME38
Creation of Schdeuling Agreement – ME31L
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Enter the End Validity date
Enter the material for which you want to create a scheduling agreement.
Select Message Type to assign the output type
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Select the Document Type
Select the Communcation Method to select the Logical Destination
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Then, Select the Further data Tab to select the dispatch time
Then, Save it.
Scheduling agreement created under the number 5500000133
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Output Type -ME9L
Then Execute
The Print of the SA will send to the Vendor automatically
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Creating a Delivery Schedule Lines – ME38
Select & double click on the Schedule lines
Enter the Delivery Schedule lines along with the Quantity & delivery date
Slect Heades tab to create a output type to send the delivery scheduled lines to
vendor
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Scheduling agreement 5500000133 changed
Message Ouput of Delivery Scheduled Lines – ME9E
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The Print of the Delivery Scheduled lines will send to the Vendor automatically
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Create a GRN with Rspect to the SA – MIGO
The Quantity automaticaly pick from the delivery schedule lines with respect to the
date
Material document 7000000001 posted
Scheduling Agreement with MRP Process
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Create a Scheduling Agreement – ME31L
Enter the Validity End date
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Enter the Quantity of the Material
Select the Message types to assign the output type
Select the Communication method
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Select the further data Tab
Scheduling agreement created under the number 5500000134
Output Type – ME9L
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SA will send to Vendor
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Creation of PIR – ME11
Creation of Source List – ME01
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Planned Independent Requirements – MD61
Enter the Quantity
Run MRP – MD03
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To check the scheduled lines – ME33L
Select Scheduling Agreement tab
Select and double click the Line
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Here, The delivery scheduled line was Generated
Output Type – ME9E
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The Print of scheduled line will be send to vendor
Then, Create GRN with Respect to the Scheduling Agreement.
Difference Between Outline Agreement & Scheduling Agreement:
Feature
Outline Agreement
A long-term procurement contract with a
vendor for a certain period.
1. Contract (Value & Quantity)
2. Scheduling Agreement
Scheduling Agreement
A type of outline agreement where deliveries are
scheduled over time.
1. Without Release Documentation (LP)
2. With Release Documentation (LPA)
Document Type
(SAP)
MK (Quantity Contract), WK (Value Contract)
LP (Scheduling Agreement)
Structure
Contains terms, conditions, and pricing but
requires a separate Purchase Order (PO) for
procurement.
Contains predefined schedule lines for deliveries
without requiring a PO.
Procurement
Process
PR → PO based on contract
PR → Scheduling Agreement with Schedule Lines
Call-Off Process
Needs a separate PO for every purchase
Schedule Lines
No schedule lines; needs PO creation for each
order
Releases
Required?
No releases required
Definition
Types
Use Case
Example
Used when specific call-offs/orders are required
over time
A company signs a one-year contract with a
vendor for 10,000 units but issues POs as
needed.
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Deliveries happen automatically based on the
schedule lines.
Schedule lines exist and define delivery dates and
quantities.
If LPA, releases (Forecast & JIT) must be
generated.
Used when recurring deliveries are planned over
time.
A company schedules weekly deliveries for a
period, and goods are automatically received per
schedule.
SAP WISDOM