Explaining Fashion Contracts (Wholesale)

For early planning between your company and your customer you have arranged for a first-level agreement to order a large quantity of materials that will be called off during the season.

The customer may ask for a special price condition because of the high quantity ordered. This condition will be copied to the call off orders.

The service level for this customer can be enhanced by allocating stock to the contract.

Fashion contracts are not relevant for delivery. They just store the overall agreement details. Delivery to customers is facilitated with call off documents which are standard sales orders.

Fashion specific settings are maintained in IMG → Sales and Distribution → Sales → Sales Documents → Sales Documents Header → Maintain Sales Document Types for Fashion Management (Requirement relevance).

Details about supply assignment (ARun) features are described in the ARun section of this training class.

Fashion contracts are created with standard transaction VA41.

While standard contracts do not create requirements Fashion contracts can do this.

This is achieved by enabling the "order quantity" (which is disabled in standard contracts). As a consequence Fashion contracts do not make use of the target quantity.

This enables MRP to plan for fashion contracts.

Fashion uses standard options for order creation with reference. Users can manually search for contracts when creating a call off order or the system proposes valid contracts automatically (e.g. based on the customer number or the combination of customer and Material number)

Fashion contracts that contain ARun-relevant materials can be supply assigned to reserve stock and to minimize the risk of not being able to deliver when the call-off is received. Contracts can only be get ARun status R because are not delivery relevant. Call offs can inherit the R status and if a release rule is maintained against the order type status F can be obtained automatically during saving of the call off order.

There are special settings in customizing to decide if assigned quantities are re-established in the fashion contract in case the call-off gets deleted before being delivered.