What is vendor outline agreement in SAP MM - Materials Management?

SAP Term: vendor outline agreement

• Component: MM

• Component Name: Materials Management

• Description: A long-term purchase arrangement with a vendor for the supply or provision of materials or services subject to specified conditions. The conditions apply for a predefined period of time and to a predefined total quantity or total purchase value.

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• Key Concepts: 
  A vendor outline agreement is a contract between a vendor and a company in SAP Materials Management (MM). It is used to define the terms and conditions of a long-term purchase agreement between the two parties. The agreement outlines the quantity, price, and delivery date of goods or services that will be provided by the vendor. 
  
  How to use it: 
  In SAP MM, a vendor outline agreement is created by entering the details of the agreement into the system. This includes the vendor, material, quantity, price, and delivery date. Once the agreement is created, it can be used to create purchase orders for the specified materials. The purchase orders will automatically include the terms and conditions of the outline agreement. 
  
  Tips & Tricks: 
  When creating a vendor outline agreement in SAP MM, it is important to ensure that all of the details are accurate. This includes verifying that the vendor information is correct and that all of the terms and conditions are up-to-date. Additionally, it is important to review any changes to the agreement before they are saved in order to ensure that they are accurate. 
  
  Related Information: 
  Vendor outline agreements can be used in conjunction with other features in SAP MM such as release strategies and scheduling agreements. Additionally, they can be used to track vendor performance over time by monitoring delivery dates and quality of goods or services provided.