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How to Create Contract Release Order in Sap

Creating Contract Release Orders in SAP: A Step-by-Step Guide

SAP, or Systems, Applications, and Products in Data Processing, is a widely used enterprise resource planning (ERP) software that helps businesses automate their processes and streamline their operations. One of the many functionalities of SAP is creating contract release orders, which allow a company to release the quantity of materials or services specified in a purchase agreement. In this article, we’ll show you how to create a contract release order in SAP.

Step 1: Access the ME38 Transaction

To start creating a contract release order, you need to access the ME38 transaction in SAP. You can do this by entering ‘ME38’ in the search bar of the SAP screen and pressing Enter. Alternatively, you can navigate to Logistics > Materials Management > Purchasing > Outline Agreement > Contract > ME38 in the menu.

Step 2: Enter the Contract Number

After accessing the ME38 transaction, you need to enter the contract number in the relevant field. The contract number is a unique identifier assigned to the purchase agreement that you want to create a release order for. Once you enter the contract number, click on the Enter button.

Step 3: Select the Release Order Type

Next, you need to select the release order type. SAP offers different types of release orders, such as standard, delivery schedule, and call-off. The type of release order you choose depends on the terms and conditions of the purchase agreement. To select the release order type, click on the Release Order Type field and choose the appropriate one from the dropdown menu.

Step 4: Specify the Release Order Quantity

After selecting the release order type, you need to specify the quantity of materials or services that you want to release from the purchase agreement. To do this, enter the quantity in the Release Qty field.

Step 5: Save the Release Order

Once you have specified the release order quantity, you need to save the release order. To do this, click on the Save button on the top left corner of the screen. SAP will generate a release order number, which you can use to track the release order in the system.

Step 6: Monitor the Release Order

After saving the release order, you need to monitor its status in SAP. To do this, you can use the ME2L transaction, which displays a list of all release orders for a particular purchase agreement. You can also use the ME23N transaction to view the details of a specific release order.


Creating a contract release order in SAP is a straightforward process that involves accessing the ME38 transaction, entering the contract number, selecting the release order type, specifying the release order quantity, saving the release order, and monitoring its status. By following these steps, you can effectively manage your purchase agreements and streamline your procurement processes in SAP.