diff distribute contract and centrally conract

[Former Member]

hi gurus

wht is different between distribute contract and centrally contract plz tell me detail.

[MadhuKolla]

Hi,

It is possible to create contracts that do not relate to just one particular receiving plant. In this case, a centrally agreed contract is created without specification of a plant. The plant is not specified until a contract release order is created.

A centrally agreed contract is involved if:

• A single purchasing organization procures for an entire corporate group

or

• A reference purchasing organization makes a contract available to other associated purchasing organizations, enabling the latter to issue release orders against this contract.

Regards,

Pravin