Trading Contract 
Trading Contract
Purpose
Trading contracts are documents in the SAP System that integrate multiple legal contracts between customers and vendors. With the trading contract, both sales and purchase orders can be maintained using a single transaction.
Usually in a trading company, one person or department carries out both buying and selling procedures. The simultaneous sales and purchasing data entry screen is necessary to avoid redundant data entries and reduce missed operations.
With one trading contract document, the system creates follow-on sales side document and purchase side document after releasing. In the contract document header, you can maintain sales side data that is copied to each item line. Then you maintain purchasing data in each item line. You can create multiple purchase orders to fulfill one sales order if necessary. Trading contracts are, therefore, sales-order-driven documents. Trading contract can be used as one-sided contract such as purchase side only contract and sales side only contract. Using position management function, you can manage the material position and subsequent process of one-side contract item.
The Trading Contract component enables you to implement various different business transactions for integrating sales documents and purchase documents. You can, for example, create the following type of the trading contract:
Integration
The vendor and customer master, material master, conditions, sales transactions, and purchasing transactions must be in use if you want to use the Trading Contract component.
For further information see
Purchasing and Sales & Distribution
Features
The Trading Contract component is a center of trading business. It incorporates
sales orders, purchase orders, and vendor billing documents for trading expenses. Users can monitor the processing status of all subsequent transactions associated with the trading contract via extended document flow.
It also provides accurate profit simulation report, including all the costs and revenue elements, when you enter data in the trading contract.
After the deals are completed and all the data is transferred to Accounting, you can use the trading contract number to check the actual profit.
The Trading Contract component provides support for the following: