Contracts and Outline Agreements in Sales 

Use

You use outline agreements to offer your customers long-term contracts for certain products with special conditions.

Features

The following functions are available for processing outline agreements:

●     Releasable products

At item level, you can define the products that a customer can release from the contract by:

○     Entering one or more products manually

○     Choosing from predefined partner/product ranges

○     Choosing from a product category

○     Using a combination of the above

For more information, see Defining Releasable Products.

●     Target values or target quantities

In sales contracts you determine how much of the product the customer can release by entering a target monetary value if you are working with value contracts, or a target quantity if you are working with quantity contracts. For more information, see Sales Contract.

●     Price agreements

You can specify special price agreements by entering the conditions in the contract, such as a reduced price for a particular product. Note, however, that the system does not calculate individual prices in the contract itself, but in the release order.

●     Partners

You enter partners, such as the sold-to party, ship-to party and responsible employees. You can also define several sold-to parties or ship-to parties who are authorized to release products from the contract. For more information, see Authorized Partners.

●     Cancellation procedure

You can use a cancellation procedure to specify who is authorized to cancel a contract, and the notice period. For more details, see Cancellation

●     Completion rules

You can use completion rules to define how the system should react once the customer has released the total target quantity or value of products. For more information, see Completion Rules.

●     Appointments

You can define contract start and end dates as well as a contract term. You can either enter this information manually or you can create date rules for determining a default start date or contract term. For more information, see Dates in Business Transactions.

●     Actions

You can automatically plan and trigger follow ups, for example to inform the employee responsible for a contract of its impending expiration. For more information, see Actions for Contracts.

●     Payment cards

You can add payment card information to the contract, but the system does not run an authorization check from the contract. When you create a release order, the system copies the payment card details to the release order, where the authorization check then takes place.