An outline agreement is a longer-term purchase arrangement with a vendor.

It concerns
the supply of materials or the performance of services according to predetermined
conditions. These conditions are valid for a certain period of time and cover a predefined
total purchase quantity or value. Delivery dates arent specific in outline
agreements. Instead, this information is provided separately in release orders or
rolling delivery schedules, depending on the type of agreement. As shown in Figure
4.59, there are two types of outline agreements: contract and scheduling agreements