Outline Agreement in SAP Tcode: A Guide for Procurement Professionals

Managing procurement processes effectively is critical for any organization to maintain smooth and uninterrupted operations. SAP ERP provides a comprehensive suite of tools to manage procurement activities, including the outline agreement. In this article, we will explore the outline agreement in SAP Tcode and its benefits for procurement professionals.

What is an Outline Agreement in SAP Tcode?

An outline agreement is a long-term purchasing agreement between a vendor and a customer. It includes terms and conditions that govern all future transactions between both parties. The outline agreement in SAP Tcode is a powerful tool that streamlines procurement processes, enabling easy and efficient management of long-term purchase commitments.

The different types of outline agreements in SAP Tcode include:

1. Contracts (ME31K): A contract outlines the terms and conditions governing future transactions between the vendor and customer. The contract can include information on the pricing, delivery schedules, and payment terms.

2. Scheduling Agreements (ME31L): A scheduling agreement specifies the quantities and delivery dates for the goods/services to be delivered by the vendor. It also includes the pricing and payment terms.

3. Outline Agreements (ME32K): An outline agreement is a combination of both contracts and scheduling agreements. It includes the terms and conditions for future transactions between the vendor and customer and the delivery schedules and quantities.

Benefits of Using Outline Agreement in SAP Tcode

1. Improved Contract Management: The outline agreement in SAP Tcode enables users to manage long-term contracts efficiently. It helps to keep track of contract-related information such as pricing, quantities, and delivery schedules.

2. Streamlined Procurement Processes: Outline agreements help to simplify procurement processes, enabling users to create purchasing documents easily. It also reduces the time spent on negotiating and creating new contracts.

3. Better Forecasting: Outline agreements enable users to plan procurement activities effectively, ensuring adequate inventory levels and reducing the risk of stockouts.

4. Enhanced Collaboration: Outline agreements enable effective collaboration between the vendor and customer, improving the accuracy of procurement processes, and reducing the risk of misunderstandings.


Outline agreements are a critical tool for procurement professionals to streamline procurement processes and manage long-term purchase commitments. The SAP Tcode provides a powerful suite of tools to manage these agreements, improving contract management, forecasting, and collaboration. Procurement professionals should leverage this tool to achieve efficient and effective procurement processes.