In the world of SAP, the creation of an outline agreement is an essential component of any business transaction. Outline agreements are legally binding agreements between a vendor and customer that outline the terms and conditions of a purchase or delivery of goods or services over a specified period of time. In this article, we will explore how to create an outline agreement in SAP using the transaction code (t-code) ME31K.

Step 1: Accessing ME31K Transaction Code

To access the ME31K t-code, you must log in to your SAP system. Once you have logged in, type ‘ME31K’ in the command field and press the enter key. This will take you to the ME31K transaction code.

Step 2: Entering the Vendor’s Details

The next step is to enter the vendor’s details. Click on the ‘Vendor’ field and enter the vendor’s name or vendor code. If the vendor is new, you can create a new vendor by clicking on the ‘New Vendor’ button.

Step 3: Defining the Outline Agreement Type

The master data for the outline agreement type must be configured in advance. In this step, you can select the appropriate outline agreement type from the available options.

Step 4: Setting the Validity Dates

In this section, you will determine the period during which the outline agreement will be valid. In the ‘Validity Dates’ section, enter the start and end dates of the agreement.

Step 5: Defining the Purchase Organization

The purchase organization is the organizational unit responsible for purchasing goods and services for the company. In this section, you will select the appropriate purchase organization from the available options.

Step 6: Adding Items to the Outline Agreement

In this step, you will add items to the outline agreement. In the ‘Item Overview’ section, click on ‘New Item’ to add a new line item. Enter the material, quantity, unit of measure, and price.

Step 7: Entering Delivery Schedule

In the delivery schedule, you will define the dates on which the vendor will deliver the goods or services. Click on the ‘Delivery Schedule’ tab and enter the relevant delivery dates.

Step 8: Saving and Releasing the Outline Agreement

Once you have entered all the details, click on the ‘Save’ button to save the outline agreement. To release the outline agreement, click on the ‘Release’ button.

In conclusion, creating an outline agreement in SAP is a straightforward process that can be accomplished using the ME31K transaction code. By following the steps outlined in this article, you can ensure that your outline agreement is legally binding and meets the needs of both the vendor and customer.