What is scheduling agreement in SAP LO - Logistics - General?

SAP Term: scheduling agreement

• Component: LO

• Component Name: Logistics - General

• Description: An outline agreement against which materials are procured at a series of predefined points in time over a certain period.

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• Key Concepts: 
  A scheduling agreement is a long-term purchase agreement between a vendor and a customer in SAP. It is used to define the delivery schedule of materials or services over a certain period of time. The agreement can be used to specify the quantity, delivery date, and price of the materials or services. 
  
  How to use it: 
  In SAP, scheduling agreements are created in the Logistics Execution (LE) module. The agreement is created by entering the vendor, material, and delivery schedule information. Once the agreement is created, it can be used to create purchase orders for the materials or services specified in the agreement. 
  
  Tips & Tricks: 
  When creating a scheduling agreement in SAP, it is important to ensure that all of the necessary information is entered correctly. This includes the vendor, material, delivery schedule, and pricing information. Additionally, it is important to ensure that the delivery schedule specified in the agreement matches the customer’s needs. 
  
  Related Information: 
  Scheduling agreements are closely related to purchase orders in SAP. A purchase order is created from a scheduling agreement when materials or services are needed. Additionally, scheduling agreements can be used to track deliveries and invoices for materials or services purchased from vendors.