The Associated Cement Companies Limited

Purchase Order
PO05– Outline Agreement

ACC Mumbai, 11 JULY 2006

Rsubramania.sarma@acccement.com

Classified: INTERNAL USE ONLY Not to be quoted or reproduced without written permission
 Agenda

 Objectives
 Procurement Process Overview
 Introduction and Concept
 Outline Agreement Process Diagram
 System Walkthrough
 Question & Answer

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MM-PO
The Associated Cement Companies Ltd 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 Objectives

 To understand how to create and manage an

outline agreement
 To understand how to create and use a central
agreement contract
 To understand how to create a PO (release
order) from the contract

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MM-PO
The Associated Cement Companies Ltd 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 Procurement Process Overview
MRP Unplanned

Determination
of Outline Agreement
requirements Determination
Payment of source of Source List
supply
Info Record

Invoice
RFQ
Verification

Purchase
Goods to
Receipt/ Pay Cycle Quotation
Services Entry
Entry Sheet

Order Vendor
Monitoring Selection

Purchase
Contract
Order
Processing
Processing
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MM-PO
The Associated Cement Companies Ltd 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 Introduction and Concept

 The Contracts are maintained as Master Data for all

goods and services.
 An outline agreement is a longer-term agreement
between a Procurement department and a vendor
regarding the supply of materials or performance of
services within a certain period in accordance with
predefined terms and conditions.
 In the MM Purchasing component, a contract is a type of
outline agreement against which release orders can be
issued for agreed materials or services as and when
required during a certain overall time-frame.

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MM-PO
The Associated Cement Companies Ltd 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 Introduction and Concept
 A contract can be in either one of the following
forms:
 Quantity Contract (in case the total quantity to
be ordered during the validity period of the
contract is known)
or
 Value Contract (if the total value of all release
orders to be issued is not in excess of the
predetermined value).

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MM-PO
The Associated Cement Companies Ltd 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 Outline Agreement Process Diagram

Create Directly
Purchase
Vendor
Requisition
Contract

Purchasing
RFQ
Info Rec

Reference Price
Contract Conditions
Release
Order

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MM-PO
The Associated Cement Companies Ltd 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 System Walkthrough

 Maintain outline agreement

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MM-PO
The Associated Cement Companies Ltd 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 Q&A

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MM-PO
The Associated Cement Companies Ltd 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 We...

Know the way, show the way, go the way

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MM-PO
The Associated Cement Companies Ltd 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission