In SAP Materials Management (MM), what is the main difference between a contract and a scheduling agreement as outline purchase agreements with a vendor?

Introduction / Context:
In SAP Materials Management, purchasing departments use outline agreements to manage long term relationships with vendors. Two common types of outline agreements are contracts and scheduling agreements. Both help plan procurement over time, but they differ in how they specify quantities and delivery dates. This question focuses on the key functional difference between these two document types.

Given Data / Assumptions:

• We are working in the SAP MM module.
• Contracts and scheduling agreements are both outline agreements with vendors.
• Contracts specify overall value or quantity for a period.
• Scheduling agreements contain schedule lines that define deliveries on specific dates.

Concept / Approach:
A contract in SAP MM sets a framework for future purchases. It defines an overall target quantity or value that can be ordered over a validity period, but it does not itself contain exact delivery dates. Purchase orders or release orders refer to the contract when drawing down quantities. A scheduling agreement, on the other hand, is an outline agreement that directly includes schedule lines with detailed delivery dates and quantities. Suppliers use these schedules to deliver goods without separate purchase orders each time. Thus, the correct option must mention overall quantity or value for contracts and detailed delivery schedules for scheduling agreements.

Step-by-Step Solution:
Step 1 Recall that a contract specifies long term terms and conditions and a target quantity or value, but not detailed dates. Step 2 Recall that a scheduling agreement includes schedule lines that specify what quantity must be delivered on which exact date. Step 3 Recognize that both are managed as purchasing documents inside SAP and not outside the system. Step 4 Choose the option that clearly expresses that contracts focus on overall targets, while scheduling agreements include detailed delivery schedules.

Verification / Alternative check:
SAP MM training materials describe contracts as quantity contracts or value contracts with a validity period, and they require release orders to call off items. Scheduling agreements, meanwhile, show schedule lines at the item level with dates and quantities that the vendor uses as a delivery plan. These descriptions match the explanation in the correct option and confirm the distinction.

Why Other Options Are Wrong:
The idea that contracts are only for services and scheduling agreements only for goods is incorrect; both can be used for materials, subject to configuration. Saying that contracts always require immediate delivery and scheduling agreements never involve delivery misunderstands both documents, which are both related to planned deliveries. The claim that contracts do not involve purchasing documents or that scheduling agreements are not stored in SAP contradicts basic SAP functionality. Finally, stating that there is no functional difference ignores important planning and execution differences between the two.

Common Pitfalls:
New SAP users sometimes misuse contracts when they actually need a detailed schedule or use scheduling agreements where only a simple framework is required. Another pitfall is failing to maintain schedule lines correctly, which can result in missed deliveries. Understanding the structural difference between contracts and scheduling agreements helps purchasing teams choose the right document for each scenario.

Final Answer:
The main difference is that A contract defines overall quantity or value over a period, while a scheduling agreement includes detailed delivery schedules with specific dates and quantities.