Hi srikanth,
The scheduling agreement contains fixed delivery dates and quantities. These dates are contained in the schedule lines for the scheduling agreement.
Once the scheduling agreement is due for delivery you can create delivery as normal or by using a delivery due list.
comming to your requirement....The deliveries are not automatically created from scheduling agreements. On the date of delivery schedule in the scheduling agreements, that will be added in the delivery due list. If your project running batch jobs for creating deliveries, then this will be included in that list and the delivery will be created in the Batch job. Otherwise you have to create the delivery manually.
regards
satish