Sales Contract 

Definition

An outline sales agreement that contains special conditions negotiated between a vendor and a customer, for example, price, target value or target quantity. A sales contract is valid for a specified period. A customer submits a sales order to release products from the amount agreed in the contract.

Types of sales contract include value and quantity contracts.

Structure

Contracts are based on the concept of business transactions and contain header data and product information. Different contract types are represented in the system by business transaction types. For more information, see Structure and Data for Sales Transactions.

 

Sales contracts are controlled at item level via their status. The following status values are relevant for items in a contract:

·        Open

When you create a contract, the system automatically sets the status to Open.

·        In processing

You set this status when you are negotiating the contract.

·        Released

Contract items have to have status Released if you want to create a contract release order for a product.

·        Completed

Items whose target value or quantity value has been completely released or whose validity has expired are given the status Completed. This means that it is no longer possible to release products from this item. This status can be set either manually or automatically. For more information, see Completion Rules.

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