Defining Trade Agreements - Basic Information

Define trade agreement settings

Common settings can be defined and inherited upon creation of trade agreements. Trade agreements are activated per division in 'Settings – Trade Agreements'(CRS740).

Define a trade agreement class

A trade agreement class indicates the class ID the trade agreement belongs to. It is a classification grouping used to build up trade agreement models and is used for statistics, controlling accounting rules, and grouping.

Note: You cannot delete a trade agreement class when it is connected to an active trade agreement or trade agreement model line.

The trade agreement class ID is defined in 'Trade agreement class. Open' (CRS122).

Define a trade agreement type

A trade agreement type consists of a set of rules to classify different trade agreements which follow different rules and settlement processes. The trade agreement types control the trade agreement number series, how a settlement process is handled, and if there are deviations in the payment process.

The trade agreement type is specified when creating a trade agreement in 'Trade Agreement. Open' (OIS430). Trade agreement types are defined in 'Trade Agreement Type. Open' (OIS440).

Note: You cannot delete a trade agreement type when it is used for an active trade agreement.

Follow these steps

Specify a number series to be used by the trade agreement. The number series is managed at division level and is predefined in 'Number Series. Open' (CRS165) with TA as the number series type.
Specify the CO type and item to be used when invoices are created through the batch order entry when processing advances or settlement. If no value is entered, the CO type and item defined in (CRS740) are used.
Indicate if a settlement deviation is to be used in the payment process. Amount calculated, versus the credited or claimed amount or the maximum authorized amount. The allowed deviation is defined as a percentage.

Define a trade agreement selection matrix

A trade agreement selection matrix contains a selection table in which the scope of the trade agreement is defined. The selection table in 'Trade Agreement Table. Open' (OIS436) is then used to determine which criteria will be qualified for the trade agreement.

Control objects must be defined in 'Generic Object Control Table. Open' (CMS017) to build up a selection matrix that will determine the criteria (for example, warehouses, items, item group, business chains, customers, etc.) an order line might qualify with to find relevant trade agreements. Control objects used for 'Trade Agreement Selection Matrix. Open' (OIS437) are from the field group (OITRA) defined in 'Field Group. Open' (CRS108).

A trade agreement table is only populated in 'Trade Agreement. Open' (OIS430) when a trade agreement and its corresponding recipient is connected to a selection matrix in (OIS437).

To determine the validity of the selected matrix upon retrieval of valid trade agreements during calculation of accruals, the valid to and from dates in (OIS437) are verified against the ‘date agr type’ set in 'Trade Agreement Model Lines. Open' (OIS439). The search criteria defined maps out which trade agreement and corresponding recipient the selection matrix is connected to.

For example, a customer order that has an invoice date of 210101 and an accounting date set to 210102 are not included in the calculation of accruals if the valid date range set in the selection matrix is 210102 - 210115, and the date agreement type set in (OIS439) is invoice date.

Note: You cannot delete a selection matrix when:

Trade agreement status is less than status 90.
Selection Matrix is connected to a trade agreement model line in (OIS439).
Selection matrix is used in an active trade agreement.