A centrally agreed contract type is created without specifying the name of the PLANT. The plant specification is provided at the time of creating the contract release order. In centrally agreed contract, different conditions for individual plants can be maintained easily. Moreover, different ordering addresses or goods suppliers in the vendor master record can also be specified in this type of centrally agreed contract. The centrally agreed contract is USEFUL in the enterprises that have a central purchasing department and the MATERIALS are required to be bought for different plants. In this case, they create a high-level contract USED by the other department-specific purchase organizations within the enterprise. The use of such centrally agreed contracts usually results in more favorable conditions of purchase and helps MAINTAIN consistency in process of purchasing throughout the enterprise.

A centrally agreed contract type is created without specifying the name of the plant. The plant specification is provided at the time of creating the contract release order. In centrally agreed contract, different conditions for individual plants can be maintained easily. Moreover, different ordering addresses or goods suppliers in the vendor master record can also be specified in this type of centrally agreed contract. The centrally agreed contract is useful in the enterprises that have a central purchasing department and the materials are required to be bought for different plants. In this case, they create a high-level contract used by the other department-specific purchase organizations within the enterprise. The use of such centrally agreed contracts usually results in more favorable conditions of purchase and helps maintain consistency in process of purchasing throughout the enterprise.