What is framework order in SAP MM-PUR - Purchasing?

SAP Term: framework order

• Component: MM-PUR

• Component Name: Purchasing

• Description: A purchasing document used to procure materials or external services. Instead of stipulating a delivery date, this type of purchase order has an extended validity period. Framework orders are defined with the document type FO. They are used in accelerated procurement processes in conjunction with maintenance/servicing plans and invoicing plans, and for blanket purchase orders purchase orders with limits. A framework order covers multiple procurement transactions over a longer period in cases where the administrative costs of processing discrete POs would be disproportionately high.

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• Key Concepts: 
  A framework order is a type of purchase order in SAP MM-PUR Purchasing. It is used to create a long-term agreement between a buyer and a vendor for the supply of goods or services. The framework order contains the terms and conditions of the agreement, such as the price, delivery date, and payment terms. 
  
  How to use it: 
  To create a framework order in SAP MM-PUR Purchasing, the buyer must first enter the vendor information into the system. Then, they must enter the details of the agreement, such as the price, delivery date, and payment terms. Once all of this information is entered, the buyer can submit the framework order to the vendor for approval. 
  
  Tips & Tricks: 
  When creating a framework order in SAP MM-PUR Purchasing, it is important to ensure that all of the details are accurate and up-to-date. This will help to ensure that there are no misunderstandings between the buyer and vendor. Additionally, it is important to review all of the terms and conditions of the agreement before submitting it for approval. 
  
  Related Information: 
  For more information on creating framework orders in SAP MM-PUR Purchasing, please refer to SAP’s official documentation on the topic. Additionally, there are many online resources available that provide step-by-step instructions on how to create a framework order in SAP MM-PUR Purchasing.