Quantity contracts are agreements between the customer and your company to order specific quantities of a product in a given period. The customer does not provide information on delivery dates, only the start date and end date of the contract. Number of contracts are generally agreed to discount the total price.
A quantity contract is completed when the customer places an order against him in the contract period. However, they are automatically standard reference customer and reduce the amount of contract remaining amount of the product to be ordered under the contract.
If the customer provides delivery dates of supplies for the product, then it is preferable to use a scheduled agreement, instead of a quantity contract.
To create a quantity contract, use the following path: Logistics –> Sales and Distribution –> Sales –>Contract –>Create
(Transaction Code: VA41)