<p>about your learning experience to help us improve.</p>

You've completed

cleanFiles/bookmap_SAP_Ariba_Supply_Chain_Collaboration_Core__en-US_learning-sap-com_lsc-prod.zip (MMCP-DROPZONE) - 2023-11-20T10:15:12.000Z

Configuring a Scheduling Agreement

<div id="content"><div class="parentsection"><div class="section"><p tabindex="0">A Scheduling Agreement is a form of outline purchase agreement under which materials are procured on predetermined dates, within a certain time period.</p><p tabindex="0">SAP Business Network supports two types of Scheduling Agreements, namely,</p><ul style="list-style-type:disc"><li tabindex="0">With <strong>Release Documentation</strong>, which is sometimes referred to as LPA or Release</li><li tabindex="0">And, <strong>Without Release Documentation</strong>, which is sometimes referred to as LP or Agreement</li></ul></div></div><div class="parentsection"><div class="section"><p tabindex="0">Scheduling Agreements include at least one of the following three zones:</p><ol><li tabindex="0">Firm Zone</li><li tabindex="0">Trade-off Zone</li><li tabindex="0">Planning Zone</li></ol><p tabindex="0">Each of the zones signals suppliers to take certain actions.</p><p tabindex="0">For an overview of the Scheduling Agreement Collaboration process, watch the video:</p><div class="kalturaVideoLessonWrapper"><div id="1_u3mxf0lb" data-testid="video" class="kalturaVideoLessonContainer"></div></div></div></div></div>

Scheduling Agreement Collaboration

Configuring SAP Business Network Supply Chain Collaboration

SchedulingAgreementOverview_Ani.mp4

Scheduling agreements are similar to purchase orders in that they allow a buyer to order goods from a supplier. The difference is that scheduling agreements have a schedule associated with each line item. That schedule specifies the date and quantity of the items that the buyer has ordered. For example, with a regular purchase order, we might order 100 widgets. With a scheduling agreement, we would still order 100 widgets, but we would specify the quantity and the date on which we want those widgets delivered. we might say, deliver 25 of them on May 21st, 25 of them on May 28th, and the remaining 50 on June 5th. This is the schedule, and the scheduling agreement can, of course, have multiple line items, and each line item can have its own schedule. There are two types of scheduling agreements, LP and LPA. An LP scheduling agreement is without release documentation. An LPA scheduling agreement is with release documentation. LPS schedule agreements transmit to schedule lines to the vendor automatically after creation. LPA schedule agreements do not automatically transmit the schedule lines after creation. the schedule lines are released to the supplier on a schedule and are usually the result of an MRP run. In this discussion, we will be concentrating on scheduling agreements with releases. That's the LPA type of scheduling agreement. When we define a scheduling agreement, we define certain time periods associated with that schedule agreement. We start by specifying a start and an end validity period, which defines the planning horizon. In our example, we're going to use May 18th as the start date and June 18th as the end date. Next we define the firm zone. The firm zone is defined as a number of days from the start date. In our example we'll use seven days to define the firm zone. Next we define the trade-off zone. The trade-off zone is specified as a number of days from the start date. The trade-off zone is defined from the end of the firm zone to the date specified. The remaining time is considered the forecast or planning zone. These zones are important because they communicate to the supplier a level of commitment to the purchase. Items scheduled in the firm zone represent a firm commitment and cannot be canceled. If an order in the firm zone were to be canceled, the supplier would be entitled to charge the buyer with both production costs and the cost of procuring the input materials for all items in the firm zone. Items scheduled in the trade-off zone, sometimes called the semi firm zone, carry financial responsibility but are less binding than those in the firm zone. Items in the trade-off zone indicate to the supplier that they can procure necessary input materials to manufacture the item ordered. If an order in the trade-off zone is canceled, the supplier would be entitled to charge the buyer with any material costs, but only with the material costs. Items in the forecast or planning zone are for forecast only. If items in the forecast zone are canceled, there's no financial responsibility on the part of the buyer. In our example, if we schedule the first twenty five items to be delivered on May 21st, that would fall in the firm zone. If the next schedule was on May 28th, that would fall in the tradeoff zone. and if the remaining 50 were scheduled to be delivered on June 5th, that would fall in the forecast or planning zone. Let's look at the scheduling agreement collaboration process flow. This shows the process flow from the creation of the scheduling agreement all the way through settlement. Let's walk through each of the steps. The process begins by the creation of the scheduling agreement in the buyer's ERP system. The delivery schedules associated with that are created and then that delivery forecast information is sent to the supplier. The supplier receives that on the Ariba network and they create an advanced ship notice and send that back to the buying organization. As a result of that the ERP system creates an inbound delivery so that it is aware that goods will be arriving. The supplier then ships the goods to the buyer and as a result the buyer creates a goods receipt and sends that to the supplier. The supplier accepts that goods receipt as a proof of delivery and then can create an invoice and send it back to the buyer. What we've shown here is the standard process of the supplier creating the invoice and sending it to the buyer, but there is another option. Instead of the supplier creating the invoice and sending it to the buyer, the buyer can actually create what's called an evaluated receipt settlement type of invoice. This type of invoice is based on the good receipt that the buyer receives. They generate the invoice on behalf of the supplier. It is sent to the Reba network so that the plier has visibility to that invoice. Whether the buyer and supplier use the standard invoicing process or the evaluated receipt settlement is really a decision that they make as they negotiate their business process. Regardless, an invoice is created so that settlement can occur. This represents the complete scheduling agreement collaboration process from beginning to end.