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subscribe our channel and press the bell icon for watching more video so how do you create a contract create a contract by going to logistics material management purchasing and outline agreements like I said there are two different tools the vendors used to negotiate with customers one is a contract and next is a scheduling agreement now I said contract is a primary tool a scheduling agreement is used only in specific kind of industries well go through the scheduling agreement a bit but we are going to focus more on contracts in this chapter so click on contracts and M a 31 K its going created so we want to create a contract with the vendor 4001 and what kind of contract is it the first kind of the first kind of contract that we are going to create is a quantity contract so we create a contract with the vendor 4001 for delivering 50,000 pounds or kilos of coffee at $9 per pound okay so in order to do that we have to select the right agreement type this is where you select whether it