Sales Contracts

Sales contracts are used to register agreements about the delivery of specific goods to a sold-to business partner.

These agreements can be registered at the following levels:

• Sales contract lines

  In contract lines, the delivery agreements for an item or group of items for a specified period of time are registered. These agreements include the total quantities, prices, and discounts. You can specify an effective period and indicate whether the minimum quantity to be sold is binding.

• Terms and conditions agreements

  In terms and conditions agreements, detailed terms and conditions regarding orders, schedules, planning, logistics, invoicing, and demand pegging are registered for the sale, purchase, or transfer of goods. To use a sales terms and conditions agreement, you must link it to a sales contract before you can use it.

You can create the following contract types:

• Normal contracts
• Special contracts

Special contracts are used to record agreements that relate to specific projects. A special contract can also be a promotional contract. For each sold-to business partner, you can close multiple special contracts in one period. In a specific period, you cannot specify more than one normal contract per item or price group for a sold-to business-partner.

Sales contracts are used as the basis of sales orders or sales schedules. The data specified in the sales contract serves as a parent of the data that you specify in the linked sales order or sales schedule. Sales schedules and terms and conditions agreements can be linked only to normal contracts and not to special contracts.

• Specifying sales contracts

  The regular sales contract procedure includes the creation of a sales contract header and sales contract lines with sales contract price revisions and logistic agreements.

• Discount schedules on contracts

  You can link one or more discount schedules to a sales contract.

• Retrieving sales contracts

  How sales contracts are retrieved depends on various parameters settings, such as the use of terms and conditions and customer order number.

• Scheduled requirements for a sales contract

  To use a simplified sales schedule, you can define scheduled deliveries based on a sales contract. You can use this process if you do not receive schedules from your sold-to business partners, and you want to set up a list of time-phased deliveries using a sales contract. You can specify scheduled requirements for a sales contract using delivery schemes or sales schedules.

• Copying sales contracts

  You can copy sales contracts to create sales contracts.

• Evaluating sales contracts

  If a sales contract is used for a sales order or sales schedule, you can evaluate the sales contract during and after the sales order or schedule procedure. During the contract's effectivity period, you can check if the deliveries were made as agreed in the contract. At the end of the contract's effectivity period, you can check if the agreed quantities were delivered.

• Material price information

  You can link material price information to a sales contract line. As a result, the (document line) price on the sales contract line includes material prices.

• Additional processes

  You can use several additional processes in the sales contract procedure, such as activating or deactivating a range of sales contracts, printing sales contract acknowledgements, printing sales contract reminders, terminating and deleting sales contracts.