Overview of terms and conditions
If a company uses functionality, such as vendor managed inventory (VMI), subcontracting, and allocations, multiple rules are applicable between business partners. To register all terms and conditions that are applicable between business partners in a particular situation, you can specify terms and conditions agreements.
A terms and conditions agreement is an agreement between business partners about the sale, purchase, or transfer of goods with detailed terms and conditions about orders, schedules, planning, logistics, invoicing, and demand pegging, and the search mechanism to retrieve the correct terms and conditions. For example, you can specify the terms and conditions regarding the financial ownership of goods for a specific functionality.
An agreement includes the following:
- A header with the type of agreement and the business partner(s)
- Search levels with a search priority and a selection of search attributes (fields) and linked terms and conditions groups
- One or more lines with the values for the search levels’ search attributes
- Terms and conditions groups with detailed terms and conditions about orders, schedules, planning, logistics, invoicing, and demand pegging for the lines
Before you can use terms and conditions agreements, you must link purchase agreements to purchase contracts, sales agreements to sales contracts, and internal agreements to enterprise unit relationships.
Specifying terms and conditions
For more information, refer to Setting up terms and conditions.
Terms and conditions templates
In a terms and conditions agreement, lots of data can be entered. To facilitate data entry, you can store default data in a terms and conditions template. A template is a default terms and conditions agreement, representing a business process, that has no business partner linked to it. The level of detail of the template data is user-definable. Based on this template, you can quickly generate new terms and conditions agreements for business partners.
Terms and conditions templates also allow you to do the following:
- Simultaneously update multiple existing terms and conditions agreements derived from a specific template.
- Validate whether the generated terms and conditions agreements meet the business process represented by the template.
For more information, refer to Terms and conditions templates.
Retrieving terms and conditions
If you use terms and conditions, an extensive search mechanism is used to retrieve the correct terms and conditions regarding the sale, purchase, or transfer of specific goods.
For more information, refer to Retrieval of terms and conditions.