Outline agreements, approvals & supplier performance

A contract is a longer-term agreement with a target quantity (document type MK) or value (WK). Release orders are ordinary POs that reference the contract, and the contract's release documentation tracks consumption against the target.

• Centrally agreed contracts can be used by multiple plants assigned to the purchasing organisation.
• Item category M (material unknown) and W (material group) support value contracts for consumables.
• Conditions in the contract can be time-dependent and override info records.

T-codes & apps

ME31KME32KME33KME3LME3MME3N

A scheduling agreement (LP, or LPA with release documentation) holds delivery schedule lines instead of individual POs — typical for repetitive, high-volume supply such as automotive components.

• Schedule lines can be created by MRP when the source list entry is MRP-relevant.
• LPA distinguishes forecast (FRC) and JIT schedules sent to the supplier as releases.
• Firm and trade-off zones on the agreement define liability for materials and production.

T-codes & apps

ME31LME32LME38ME84ME9E

The classic release strategy uses classification: characteristics on communication structure CEKKO (for POs) or CEBAN (for PRs) — such as total value, document type, plant, purchasing group — are assigned to a class of class type 032. Release groups, codes, indicators and strategies define who approves in what order.

• PR release can be at item level or overall; PO, contract and RFQ release is always header-level.
• Release indicator controls whether a released document can still be changed and which changes reset the strategy.
• Release codes link to roles/authorisations (object M_EINK_FRG).

T-codes & apps

CT04CL02ME28ME29NME54NME55

Configuration

IMG › Materials Management › Purchasing › Purchase Order › Release Procedure for Purchase Orders

Flexible workflow is the S/4HANA approach to document approval for PRs, POs, RFQs, quotations, contracts and scheduling agreements. Business users define start conditions, steps and agents in Fiori apps instead of classification-based strategies.

• Configured with 'Manage Workflows for Purchase Orders' (and equivalent apps per document).
• Agents can be determined by role, manager hierarchy or BAdI logic.
• Classic release strategy and flexible workflow should not be active for the same document type at the same time.

T-codes & apps

Fiori: Manage Workflows for Purchase OrdersMy InboxSWFVISU

POs reach suppliers through output: print/PDF, email, EDI/IDoc or SAP Business Network. S/4HANA offers the BRF+ based output management while classic NAST condition technique remains available.

• Classic: output type NEU, maintained with MN04/MN05 condition records.
• New output management: output parameter determination in BRF+, forms in Adobe Forms.
• EDI uses message types such as ORDERS (PO), ORDCHG (change), ORDRSP (confirmation).

T-codes & apps

MN04ME9FNACEFiori: Output Parameter Determination

Supplier (vendor) evaluation scores suppliers on main criteria — price, quality, delivery and service — derived from PO history, GR dates, quality notifications and manual entries. Scores support sourcing decisions and supplier reviews.

• Main criteria and sub-criteria with weighting keys are configured per purchasing organisation.
• Automatic scores use data such as on-time delivery and quantity reliability from goods receipts.
• S/4HANA adds Fiori analytics and questionnaires for supplier evaluation.

T-codes & apps

ME61ME63ME64ME65