What is master contract hierarchy in SAP FS-MCM-MC - Master Contract?

SAP Term: master contract hierarchy

• Component: FS-MCM-MC

• Component Name: Master Contract

• Description: A group of contracts belonging to a main master contract that are on one or more levels. A master contract hierarchy includes all the accounts and master contracts that are participating in a main master contract. In a one-level hierarchy, only accounts participate in the master contract. In this case, the master contract hierarchy is the same as the master contract. In a multi-level hierarchy, other master contracts participate in a master contract. In this case, the master contract hierarchy includes all participant master contracts, including their participants.

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• Key Concepts: 
  The master contract hierarchy is a feature of the SAP Master Contract Management (FS-MCM-MC) component. It allows users to create and manage hierarchies of contracts, which can be used to define relationships between different contracts. This hierarchy can be used to define the scope of a contract, as well as to control the flow of information between different contracts. 
  
  How to use it: 
  The master contract hierarchy is created by creating a parent contract and then adding child contracts to it. The parent contract is the top-level contract in the hierarchy, and all other contracts are considered child contracts. The parent contract can be used to define the scope of the entire hierarchy, while the child contracts can be used to define specific details about each individual contract. 
  
  Once the hierarchy is created, users can use it to control the flow of information between different contracts. For example, if a parent contract has certain terms and conditions that need to be applied to all child contracts, then those terms and conditions can be applied automatically when a new child contract is created. 
  
  Tips & Tricks: 
  When creating a master contract hierarchy, it is important to ensure that all contracts in the hierarchy are properly linked together. This will ensure that all information flows correctly between different contracts in the hierarchy. Additionally, it is important to ensure that all contracts in the hierarchy are up-to-date and accurate. This will help ensure that all information is accurate and up-to-date when it is needed. 
  
  Related Information: 
  The master contract hierarchy feature of SAP Master Contract Management (FS-MCM-MC) is closely related to other features such as contract templates and document management. Contract templates allow users to quickly create new contracts based on existing templates, while document management allows users to store and manage documents related to their contracts. Both of these features can be used in conjunction with the master contract hierarchy feature to ensure that all information related to a particular contract is accurate and up-to-date.