What is master agreement in SAP FIN-FSCM-TRM-TM - Transaction Manager?

SAP Term: master agreement

• Component: FIN-FSCM-TRM-TM

• Component Name: Transaction Manager

• Description: The arrangements and conditions that are applied to individual transactions. Criteria of a master agreement: Term Permitted company codes Permitted business partners Permitted transaction types and the minimum and maximum transaction terms Permitted currencies, including miniumum amounts, the tranche and the total transaction volume in the respective currency.

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• 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 SAP Transaction Manager (FIN-FSCM-TRM-TM) to define the terms and conditions of a business relationship between two parties, such as a customer and supplier. The master agreement can be used to define the payment terms, delivery terms, and other conditions of the business relationship. 
  
  How to use it: 
  In SAP Transaction Manager, a master agreement is created by entering the details of the agreement into the system. This includes the payment terms, delivery terms, and other conditions of the agreement. Once the master agreement is created, it can be used to create individual transactions with customers or suppliers. The master agreement will be used as a template for each transaction, ensuring that all transactions are consistent with the terms and conditions of the master agreement. 
  
  Tips & Tricks: 
  When creating a master agreement in SAP Transaction Manager, it is important to ensure that all of the details are accurate and up-to-date. This will ensure that all transactions created using the master agreement are consistent with its terms and conditions. Additionally, it is important to review and update the master agreement periodically to ensure that it remains current with any changes in business relationships or regulations. 
  
  Related Information: 
  For more information on creating and managing master agreements in SAP Transaction Manager, please refer to SAP Help documentation at https://help.sap.com/viewer/product/FIN_FSCM_TRM_TM/latest/en-US