Agreement 
A long-term contract between business partners that details their commitment to conduct business with each other in an agreed manner.
An agreement can be legally binding. The available agreement types are freight agreement and forwarding agreement. Both agreement types can be mutual agreements between the business partners.
Freight agreements (FAs) and forwarding agreements (FWAs) are the basis for calculating transportation charges. You use FWAs to calculate transportation charges billable to your customer and FAs to calculate transportation charges billable to you by your carrier.
An agreement includes contractual data, such as the following:
Sales or purchasing organization
Ordering party or carrier
Terms of payment
Validity dates
The system determines the agreement based on organization, business partner, validity period, and preconditions. Agreement determination is based mainly on the partner relationship. You define which partner roles are relevant to the agreement in Customizing for Transportation
Management under 
Basic Functions 
Charge Calculation Basic Settings for Charge Calculation Define General Settings 
.
Structure
An agreement can contain the following tab pages and screen areas:
General Data
The General Data tab page contains general information about the agreement, for example, the organizational unit responsible for the forwarding order (FWO) or freight order (FO), the validity period of the agreement, and business partner details. You can also specify the calculation sheet template the system should use when creating a calculation sheet from within the agreement.
NoteIf you do not specify either the ordering party or the business partner hierarchy tree for an FWA, the system considers the FWA to be a standard FWA. A standard FWA is valid only if an FWA is not identified during agreement determination for the ordering party specified in the FWO. Standard FAs are not allowed so you must specify either the carrier or the business partner hierarchy tree.
You can define an FA or FWA type to apply to multiple organizational units and multiple business partners in Customizing for Transportation Management under
Master Data Agreements Define
Forwarding Agreement Settings or under Master Data Agreements Define Freight Agreement Settings . You can also specify multiple organizational units
and business partners for mutual agreements.End of the note.On this tab page, you can add an agreement determination exclusion rule or a BRFplus condition to exclude the agreement from agreement determination. During agreement determination, if the system finds a condition that matches the condition in the agreement determination exclusion rule, the system excludes the agreement. For more information, see Rules and Conditions for Charge Management.
Items
The Items screen area contains the details of the agreement items. You must define at least one item for the agreement to be relevant for charge calculation. You can assign the following preconditions to agreement items and each agreement item can represent any combination of them:
Service level
Stage category
Transportation mode
Shipping type
The system uses these preconditions and external strategies (see External Strategies) to determine the pick-up frequency and transit duration. Service preconditions define whether a service is valid for certain freight units.
NoteYou can assign service level, stage category, transportation mode, and shipping type only to agreements with Editable entered for the display control setting. You make this setting in Customizing for Transportation Management under
Master Data Agreements Define Forwarding Agreement Settings or under Master Data Agreements Define Freight
Agreement Settings .End of the note.This screen area contains Calculation Sheet, Precondition, and Payment Terms tab pages. You must attach a calculation sheet to each agreement item and you can also specify additional preconditions and payment terms for each agreement item. For more information about the Calculation Sheet screen area, see Calculation Sheet.
NoteYou can choose an existing reference calculation sheet or create a calculation sheet. If you enter the name of an existing reference calculation sheet, the system attaches the reference calculation sheet to the agreement item. If the calculation sheet does not already exist, the system prompts you to create it. The calculation sheet that the system creates is based on the calculation sheet template you specified on the General Data tab page. If you did not specify a calculation sheet template, the system creates the calculation sheet with one sum line at the top level. You should then add additional lines to the calculation sheet. For more information, see Calculation Sheet Maintenance.
End of the note.Change Documents
You can view all changes made to an agreement on the Change Documents tab page or screen area. The changes are listed by date and time. You view the details of the changes at header level by selecting the relevant row in the Transactions screen area and at field level by selecting the relevant row in the Record Level Changes screen area. You must refresh the agreement to view recently-saved changes.
NoteYou can activate the Change Documents tab page or screen area in Customizing for Transportation Management under
Master Data Agreements Define
Forwarding Agreement Types or under Master Data Agreements Define Freight Agreement Types .The Change Documents tab page or screen area is optional. You add it to the agreement as either a tab page or a screen area using the Personalization Editor, which you can access within an agreement.
End of the note.
Integration
Both agreement types are integrated fully with calculation sheets, rate tables, and scales. For more information, see Calculation Sheet, Rate, and Scale.