What is master contract in SAP FS-AM-CM - Contract Management?

SAP Term: master contract

• Component: FS-AM-CM

• Component Name: Contract Management

• Description: A contract specialization that groups account contracts together in a hierarchy and portrays contract relationships using contract element "contract relationships". Applications in Account Management include, for example, cash concentration, in Master , overdraft protection or combined settlement. The master contract forms the contractual relationships between the bank contract-managing organizational unit and a business partner's internal and external participant accounts. The master contract can have attributes and rules, but postings are only possible on the participant accounts, not on the master contract.

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• Key Concepts: 
  A master contract is a type of contract in SAP Contract Management (FS-AM-CM) that serves as a template for creating other contracts. It contains all the necessary information and clauses that are common to all contracts, such as the parties involved, payment terms, and delivery terms. The master contract can be used to create multiple contracts with the same terms and conditions. 
  
  How to use it: 
  To create a master contract in SAP Contract Management, you must first define the contract type and the associated document type. Then, you can enter the details of the contract, such as the parties involved, payment terms, and delivery terms. Once you have entered all the necessary information, you can save the master contract and use it to create other contracts with the same terms and conditions. 
  
  Tips & Tricks: 
  When creating a master contract in SAP Contract Management, make sure to include all relevant information and clauses that are common to all contracts. This will ensure that all contracts created from the master contract have consistent terms and conditions. 
  
  Related Information: 
  For more information on creating master contracts in SAP Contract Management, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_CONTRACT_MANAGEMENT/7.0/en-US