Explaining the Main Attributes of a Contract

Objective

After completing this lesson, you will be able to Outline the main attributes of a contract.

Main Contract Attributes

Chris now wonders where the contract type is set, and which settings are made, as well as where they are made.

Select the play button to learn about Chris' summarization of the different contract types.

The settings for a contract type are done in Configuration. To get a better understanding what kind of selections need to be made we’ll next look into the settings of a contract type and its main attributes in Configuration.

We have learned that a contract type (besides field status settings etc.) determines which business processes can be performed. For example, a service charge settlement can be performed only for debit (lease-out) contracts whereas the adjustment of a conditions process can be used for both debit and credit contracts.

The definition of a contract type is done in Configuration. This task needs to be done when the system is set up. Additional contract types can be added afterwards. Based on your business needs you need to know which kind of contracts you want to maintain in the system.

As Chris´s company manages a large portfolio both, lease-in and lease-out contracts will be needed. They also want to track their internal occupancy; therefore, Chris needs to have a contract type for internal business processes too.

Chris wants to understand where he can maintain all these contract types and how.

To define a contract type you must determine various contract attributes. Chris decides to have a look into Configuration on his own.

In this exercise, you will set contract types in Customizing.

The information was extensive, but Chris now comprehends the attributes that affect the contract type and the processes involved. He understands that he doesn't need to memorize everything; instead, he knows where to find the necessary information when needed.

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