Executing Solution Process: Sales Contract Management (I9I)

Objective

After completing this lesson, you will be able to describe and execute sales contract management

Business Process Overview

Sales Contract:
A sales contract is an outline agreement that contains special conditions negotiated between a supplier and a customer, for example, price, target value, or target quantity. A sales contract is valid for a specified period.
Value Contract:
A value contract is a contractual agreement with a customer that specifies a target value for the materials and services the customer may receive within an agreed time period. A value contract can contain materials. Alternatively, a range of materials to be released against a value contract can be defined using a product hierarchy (for example, all materials at or below a certain hierarchy level) or an assortment module (which is simply a predefined list of eligible materials).
Quantity Contract:
A quantity contract is a contractual agreement with a customer that contains the materials and services that the customer may receive within an agreed time period and up to a target quantity. A quantity contract can contain those materials.

Quantity and value contract items cannot be processed together in one document.

Time to reflect: How do you think improving your knowledge and skills in sales contract management could impact your professional growth?

Tutorial: Sales Contract Management (I9I)

The quantity contract contains basic quantity and price information.

In this scope item, the internal sales representative creates a sales quantity contract for a certain product. The internal sales representative creates a follow-up order, referring to this sales quantity contract. After creating the order, the internal sales representative checks the sales contract list, filtered by a certain sold-to-party.

A value contract is a legal agreement with a customer that contains the materials and services that the customer receives:

Within a specified time period
For a value up to a specified target value

In this scope item, the internal sales representative creates a sales value contract for a certain product and then creates and releases a sales order against the value contract. After creating the contract and order, the internal sales representative can check the completeness of sales contracts and the conversion rate.

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