SAP Scheduling Agreement: Definition and Functionality

If you are in the business of manufacturing or supply chain management, you may have come across the term SAP Scheduling Agreement. But what exactly is it, and how can it benefit your business? Let’s explore.

What is a SAP Scheduling Agreement?

In the simplest terms, an SAP Scheduling Agreement is a document that outlines the details of a long-term purchasing agreement between a vendor and a customer. It is a legally binding contract that stipulates the terms of delivery, pricing, and payment for a specific period.

How does it Work?

The SAP Scheduling Agreement is created in the SAP system and has a unique document number, which allows for easy retrieval and tracking. The agreement consists of two components: the delivery schedule and the release documentation.

The delivery schedule outlines the specific delivery dates and quantities agreed upon by both parties. The release documentation is used to create purchase orders based on the delivery schedule and is sent to the vendor as needed. The agreement remains in effect until the end of the specified period, unless it is terminated by either party.

What are the Benefits of Using a SAP Scheduling Agreement?

Using a SAP Scheduling Agreement offers several benefits to both parties involved in the agreement:

1. Improved Supply Chain Management: The agreement helps to streamline the procurement process and ensures timely delivery of goods, which improves overall supply chain management.

2. Cost Savings: The long-term nature of the agreement allows for better negotiation of pricing and volume discounts, resulting in cost savings for both parties.

3. Better Planning and Forecasting: The agreement allows for better planning and forecasting of production schedules and inventory levels, reducing the risk of stockouts or overstocking.

4. Improved Communication: The agreement facilitates better communication between the vendor and customer, allowing for a more efficient resolution of any issues or disputes that may arise.


In conclusion, the SAP Scheduling Agreement is a valuable tool for businesses in manufacturing and supply chain management. It provides a framework for long-term purchasing agreements, which helps to improve supply chain management, reduce costs, and improve communication between the vendor and customer. As such, businesses that use SAP should consider implementing SAP Scheduling Agreements to help streamline their procurement processes.