What is the difference between a contract and a scheduling agreement?

Contract(Outline Agreement)

Scheduling Agreement

1. You can create the centrally contract (cross-plant) where you can maintain different pricing conditions for each and every plant   2. You have to create the Release Order with reference to Outline Agreement.   3. No detailed delivery schedule can be made in the Release Order.   4. No Release documentation is created.   5. Only time-dependent conditions can be created.   6. Some Item Category 'M' and 'W' can be used.

1. The Plant Location must be entered in the Scheduling Agreement.   2. We do not have to create any other purchasing document except for delivery schedule line via Transaction ME38 or MRP running (with the appropriate setting of Source List).   3. Delivery Schedule line items are created subject to your specific requirement.   4. Can create both Scheduling Agreement with and without Release Documentation (subject to the Document Type LP or LPA) with the selection of either FRC or JIT delivery schedule.   5. Either time-dependent or time-independent conditions can be created subject to the customizing in the Document Type of the Scheduling Agreement.   6. Item Category 'M' and 'W' can not be used.