What is contract in SAP MM-PUR - Purchasing?

SAP Term: contract

• Component: MM-PUR

• Component Name: Purchasing

• Description: A form of longer-term purchase agreement against which materials or services are released ordered, or called off according to need over a certain predefined period.

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• Key Concepts: 
  A contract in SAP MM-PUR Purchasing is an agreement between two parties that outlines the terms and conditions of a purchase. It includes details such as the quantity, price, delivery date, payment terms, and other relevant information. The contract is used to ensure that both parties are aware of their obligations and that the purchase is completed in a timely manner.
  
  How to use it: 
  In SAP MM-PUR Purchasing, contracts are created in the system by entering the relevant information into the contract master data. Once the contract is created, it can be used to create purchase orders and invoices. The contract can also be used to track the progress of the purchase and ensure that all parties are meeting their obligations.
  
  Tips & Tricks: 
  When creating a contract in SAP MM-PUR Purchasing, it is important to ensure that all relevant information is included. This includes details such as the quantity, price, delivery date, payment terms, and any other relevant information. It is also important to ensure that all parties involved are aware of their obligations under the contract.
  
  Related Information: 
  For more information on contracts in SAP MM-PUR Purchasing, please refer to the official SAP documentation or contact your local SAP support team.