What is value contract in SAP MM-PUR - Purchasing?

SAP Term: value contract

• Component: MM-PUR

• Component Name: Purchasing

• Description: A contract form of long-term purchasing arrangement in which the purchase of goods or services up to a total value is agreed. The goods released called off against the contract are specified in contract release orders outside SAP, also known as "call-offs". A criterion for the fulfillment of a value contract is its agreed total value.

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• Key Concepts: 
  A value contract in SAP MM-PUR Purchasing is a long-term agreement between a vendor and a customer that outlines the terms of a purchase. It includes the price, quantity, delivery date, payment terms, and other conditions of the purchase. The value contract is used to streamline the purchasing process and ensure that both parties are in agreement on the terms of the purchase. 
  
  How to use it: 
  In SAP MM-PUR Purchasing, value contracts are created in the system by entering the details of the agreement. This includes the vendor, customer, item, quantity, price, delivery date, payment terms, and other conditions. Once the value contract is created, it can be used to quickly place orders with the vendor without having to re-enter all of the details each time. 
  
  Tips & Tricks: 
  When creating a value contract 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 orders placed using the value contract are processed quickly and accurately. Additionally, it is important to review and update value contracts regularly to ensure that they remain valid and up-to-date. 
  
  Related Information: 
  For more information on value contracts in SAP MM-PUR Purchasing, please refer to SAP Help documentation or contact your local SAP support team.