Trade Agreements - Introduction

Trade agreements is the process which determines and consists of the common calculation rules and conditions for calculating and generating accruals, and processing advances and settlements for one or more recipients. When a customer order line is qualified for an active trade agreement, the agreement is updated with the sales of the invoiced customer order lines.

A trade agreement is created to calculate accruals for qualified invoiced lines covered by the agreement, where advances, periodic settlements, and final settlement are calculated for the recipient. Each trade agreement is defined with corresponding recipients. The recipients are the beneficiaries of the calculated accruals. Trade agreements are entered in 'Trade Agreement. Open' (OIS430).

Each trade agreement function is explained in detail in separate topics. See Related topics section.