What is procurement scheduling agreement in SAP SCM-APO-CPR-SCH - Procurement Scheduling Agreement?

SAP Term: procurement scheduling agreement

• Component: SCM-APO-CPR-SCH

• Component Name: Procurement Scheduling Agreement

• Description: Outline purchase agreement against which materials are procured on specified dates within a certain timeframe. In the Advanced Planner and Optimizer APO a distinction is made between the following types of scheduling agreement: APO scheduling agreement The delivery schedule lines for an APO scheduling agreement are planned and output in the APO system. OLTP scheduling agreement The delivery schedule lines for an OLTP scheduling agreement are generated and output in the OLTP system.

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• Key Concepts: 
  A procurement scheduling agreement is a contract between a vendor and a customer that outlines the terms of a purchase. It is used to ensure that the customer receives the goods they need in a timely manner. The agreement includes details such as the quantity of goods to be purchased, the delivery date, and any discounts or other incentives that may be offered. The agreement also outlines any penalties for late delivery or non-delivery of goods. 
  
  How to use it: 
  The procurement scheduling agreement is used to ensure that the customer receives the goods they need in a timely manner. The customer can specify the quantity of goods to be purchased, the delivery date, and any discounts or other incentives that may be offered. The vendor can then use this information to plan their production and delivery schedules accordingly. 
  
  Tips & Tricks: 
  It is important to ensure that all details of the procurement scheduling agreement are clearly outlined in order to avoid any misunderstandings or disputes between the customer and vendor. It is also important to review the agreement regularly to ensure that it is up-to-date and reflects any changes in the customer’s needs or the vendor’s production schedule. 
  
  Related Information: 
  The procurement scheduling agreement is part of SAP’s Supply Chain Management (SCM) module. It is related to other SCM components such as Advanced Planning and Optimization (APO), Capacity Planning and Requirements (CPR), and Scheduling (SCH).