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

    To use terms and conditions, you must specify master data and set up the terms and conditions agreements.

  • Using terms and conditions templates

    You can use templates to generate terms and conditions agreements for business partners, update existing terms and conditions agreements, and validate terms and conditions agreements.

  • Retrieval of terms and conditions

    An extensive search mechanism is used to retrieve the correct terms and conditions from an Active contract or enterprise unit relationship for an order or schedule. To view which terms and conditions are effective in a specific situation, you can also simulate the retrieval of terms and conditions.