Contract Accounts 

Purpose

This component enables you to create and manage contract account master data. In Contract Accounts Receivable and Payable, each business partner posting is assigned to one business partner and to one contract account. In the contract account master record, you can define, for each business partner, the procedures that apply when posting and processing the line items of a given contract account. These include, for example, payment and dunning.

Integration

Master data can be changed automatically by certain business transactions. In this way, for example, a return can result in a processing lock being set.

Features

You can assign more than one contract account to a given business partner. Similarly, a single contract account can be assigned to more than one business partner. Note however, that in the industry components listed below, different rules apply. You can transfer data manually or automatically. Contract accounts tend to be managed on an open item basis. See Open Item Management. The system logs changes to master data. See Logging Changes.

Telecommunications (IS-T) component

In this component, a contract account can be assigned to one business partner only.

Utilities Industry (IS-U) Component

In Utilities,one contract account contains all those contracts belonging to one business partner for which the same payment and dunning terms apply. You assign your business partner contracts to the contract accounts. Although one contract account can contain more than one contract, each individual contract is assigned to one contract account only. This does not apply to one-time accounts.
For more information on contracts, see the Utility/Disposal Contracts section in the Utilities Industry component.

Insurance (FS-CD) Industry Component

You assign contracts to the contract accounts for which there is a business partner. Each contract is only assigned to one contract account, however one contract account may have several contracts assigned to it.
Contract account master data is usually created and changed from the operational system using an interface.

Industry Component Public Sector Contract Accounts Receivable and Payable (PSCD)

You set up the contract accounts of a business partner for the relevant taxes (property tax, income tax, and so on). You assign contract objects to a contract account for which relevant taxes are levied. If different taxes are levied for a contract object, you can make assignments to several contract accounts.
For more information about the contract objects, see the documentation for the industry-specific component Public Sector Contract Accounts Receivable and Payable under Contract Object.