What is master agreement in SAP FI-CA - Contract Accounts Receivable and Payable?

SAP Term: master agreement

• Component: FI-CA

• Component Name: Contract Accounts Receivable and Payable

• Description: A set of conditions for the transaction of business between the provider and the customer that takes effect at the conclusion of future provider contracts. The conditions of a master agreement take effect for the individual customer as soon as the provider contract is concluded and a master agreement is assigned to the provider contract. A master agreement controls the following: Which customer is allowed to receive which products or services at what conditions What price a customer pays for products or services In what form and to whom invoices are presented for the products or services received

Smart SAP Assistant

• Key Concepts: 
  A master agreement is a contract between two parties that outlines the terms and conditions of a business relationship. It is used in the FI-CA Contract Accounts Receivable and Payable component of SAP to define the terms of payment for goods or services. The master agreement can be used to define payment terms, such as payment due dates, discounts, and interest rates.
  
  How to use it: 
  In SAP, a master agreement is created in the FI-CA Contract Accounts Receivable and Payable component. The agreement is created by entering the details of the contract, such as the payment terms, discounts, and interest rates. Once the agreement is created, it can be used to generate invoices for goods or services provided by the two parties.
  
  Tips & Tricks: 
  When creating a master agreement in SAP, it is important to ensure that all of the details are accurate and up-to-date. This will help to ensure that invoices generated from the agreement are accurate and that payments are made on time. Additionally, it is important to review the master agreement periodically to ensure that it is still valid and up-to-date.
  
  Related Information: 
  The FI-CA Contract Accounts Receivable and Payable component of SAP also includes features such as payment processing, dispute management, and credit management. Additionally, SAP provides a range of other components that can be used to manage financial transactions, such as FI-GL (General Ledger) and FI-AP (Accounts Payable).