Scheduling Agreement for Subcontracting Procurement

The use of scheduling agreements can shorten processing times and reduce the amount of paperwork you are faced with. One delivery schedule can replace many discrete purchase orders or contract release orders. 

A purchase requisition of type RV-Outline Agreement Requisition can be created with subcontracting line items (Item Category – L Subcontracting) manually by a requestor. The purchase requisition can be converted into a scheduling agreement. The scheduling agreement is subject to approval based on predefined parameters before you generate delivery schedule or schedule lines (manually or via MRP run) and communicate them to the subcontractor. The outbound delivery is created, and the goods are picked and shipped to the subcontractor. With the supply of the finished material, the goods receipt is created. The invoicing process is then triggered.

Key Process Steps Covered

  • Create scheduling agreement for subcontracting manually or convert from PR
  • Generate delivery schedule manually or by MRP run
  • Approve scheduling agreement
  • Print scheduling agreement
  • Create outbound delivery and post goods issue
  • Post goods receipt
  • Create supplier invoice

Benefits

  • Reduce effort for discrete purchase order creation
  • Increase the automation of delivery schedule generation and accuracy of planning with MRP run
  • Enable suppliers to plan and allocate their resources more efficiently with long term planning