Trading Contract is an order-processing document that integrates sales and purchasing information in one transaction. Trading Contract is used as a basic document for the whole trading process. Trading execution, the follow-on process of the trading transaction, and expense handling are based on the trading contract.

The following figure describes the document flow for a trading contract.

In the trading contract, you enter both sales and purchasing information; customer, vendor, material, sales and purchase unit, sales and purchase price and so on. In addition, you can also enter planned expenses relative to the trading contract.

For procedure of creating a trading contract, see:

For detail process of expense handling, see:

After you have maintained the trading contract, the status can be set to Approved manually or automatically so that the follow-on sales order and purchase order can be generated.