Contracts and Agreements 
Purpose
A contract is an outline agreement that allows the customer to buy products or services with special conditions agreed upon in advance, such as lower prices. Contracts are used to increase customer loyalty. They help increase customer satisfaction, improving loyalty and customer retention, and also make it easier for the vendor to monitor customer behavior and to plan. Customers benefit from outline agreements with vendors, since they can take advantage of better prices and terms of delivery.
The advent of Internet market places has increased competition among buyers and sellers and has given rise to new requirements for processing contracts using e-business. The SAP component Contracts in SAP Customer Relationship Management (SAP CRM) provides a framework for meeting these requirements.
Integration
Contracts are based
on the concept of business
transactions You use business
transaction categories to determine the characteristics of a
contract.
For more information, see
Sales
Transaction and Service
Process.
Features
SAP CRM offers the following business transaction types for outline agreements
● Sales Contract (quantity or value contracts)