What is AFS first-level contract in SAP IS-AFS-MM - Materials Management?

SAP Term: AFS first-level contract

• Component: IS-AFS-MM

• Component Name: Materials Management

• Description: The basis for a multi-level contract in purchasing. The AFS first level contract is already created in an early planning phase. It contains information on the total quantity of materials in a material group, which you want to obtain from a vendor within a certain time period. You can create additional value contracts and quantity contracts with reference to an AFS first level contract at a later time, which contain detailed information at material level or SKU level.

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• Key Concepts: 
  A first-level contract in SAP AFS (Advanced Forecasting and Replenishment) is a contract between a vendor and a customer that defines the terms of the relationship. It includes the quantity of goods to be supplied, the delivery date, the payment terms, and any other conditions that must be met. The contract is used to track the progress of the order and ensure that all parties are in agreement. 
  
  How to use it: 
  In SAP AFS, first-level contracts are created in the Materials Management (MM) module. The contract is created by entering the details of the agreement between the vendor and customer, such as quantity, delivery date, payment terms, etc. Once the contract is created, it can be used to track the progress of the order and ensure that all parties are in agreement. 
  
  Tips & Tricks: 
  When creating a first-level contract in SAP AFS, it is important to ensure that all details are accurate and up-to-date. This will help to ensure that all parties are in agreement and that there are no misunderstandings or delays in fulfilling the order. 
  
  Related Information: 
  For more information on SAP AFS first-level contracts, please refer to SAP Help documentation or contact your local SAP support team.