Quantity Contract

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    Quantity contractDefinition

    A quantity contract is an agreement that your customer will order a certain quantity of a productfrom you during a specified period. The contract contains basic quantity and price informationbut no schedule of specific delivery dates and quantities.(If the customer provides delivery

    information, you can create ascheduling agreementinstead).The customer fulfills a contract by placing sales orders against it. These sales orders are knownas release orders (or call-offs).You can specify in the contract which other partners in addition to the sold-to party areauthorized to release against the contract.For further information, seeAuthorized Partners forRelease Orders.When you create a release order, you refer to the relevant contract, and the systemautomatically updates the released quantities in the contract. Otherwise, processing a releaseorder is just like processing a standard sales order.

    Creating Quantity ContractsTo create a quantity agreement, proceed as follows:

    1. In the initial screen, choose Logistics Sales and distribution Sales.2. ChooseContract Create.3. In the Contract type field, choose Quantity contract, and enter the required

    organizational data.The values for sales organization, for distribution channel and the division are usuallyproposed from user-defined parameters. Entries for the sales office and the sales groupare optional.

    4. Choose Enter.5. Enter the following data:

    Customer number of the sold-to party in the Sold-to partyfield.

    Customer purchase order number for this document

    Validity period in the Valid fromand Valid tofieldsMaterial numbersTarget quantities for the materialsThe target quantity is the projected total quantity for the material in the contract.

    6. Choose Enter.If you want to enter further data for the header or items, select the corresponding menuentry. If you wish to change data for an item, select the item before you choose themenu entry.

    7. Enter all the necessary data.8. Save your document.

    See also:Creating Release Orders for Quantity Contracts

    Value ContractsDefinition

    A value contract is a legal agreement with a customer that contains the materials and servicesthat the customer receives within a specified time period, and for a value up to a specified target

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    Document FlowYou can use the document flow to display all the subsequent documents that arise from a valuecontract (for example, sales orders, deliveries, billing documents).Completing value contracts

    A value contract is complete when you enter a reason for rejection. You can define how thesystem reacts when you have reached the target value in Customizing for value contracts (item

    category).(You define the following reactions: a warning, an error message or no reaction.)Constraints

    A value contract that has not been completely released is not automatically billed. When youwork with the billing plan which has dates that have already been billed and you then reduce thetarget value in the value contract, the system does not check whether too much has been billed.In this case, you have to create a credit memo for the difference.Quantity and value contract items cannot be processed together in one document.