What is alliance agreement in SAP LO-AGR-LSP - Livestock Procurement?

SAP Term: alliance agreement

• Component: LO-AGR-LSP

• Component Name: Livestock Procurement

• Description: A type of purchasing document that is used to establish the price of the livestock between the meat packer and the supplier. In this document, the base price of livestock comes from either United States Department of Agriculture USDA, which publishes prices every week, or the price is as used in the meat packer's plant. For example, it is the average price used by the plant. The alliance agreement is not used for purchasing livestock rather livestock purchases are created with reference to the alliance agreement. Moreover, an alliance agreement has discount premium schedule associated with it.

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• Key Concepts: 
  An alliance agreement is a contract between two or more parties that outlines the terms and conditions of a business relationship. In the context of SAP's Livestock Procurement (LO-AGR-LSP) component, an alliance agreement is used to define the terms and conditions of a partnership between a livestock supplier and a buyer. This agreement outlines the responsibilities of each party, as well as the payment terms, delivery schedules, and other details related to the procurement process. 
  
  How to use it: 
  In order to create an alliance agreement in SAP's Livestock Procurement component, users must first create a master data record for the supplier. This record should include all relevant information about the supplier, such as contact information, payment terms, delivery schedules, and other details. Once this record is created, users can then create an alliance agreement by selecting the supplier from the list of available suppliers. The alliance agreement will then be generated based on the information provided in the master data record. 
  
  Tips & Tricks: 
  When creating an alliance agreement in SAP's Livestock Procurement component, it is important to ensure that all relevant information is included in the master data record for the supplier. This will ensure that all details related to the procurement process are accurately captured in the alliance agreement. Additionally, it is important to review and update the alliance agreement regularly to ensure that it remains up-to-date with any changes in the business relationship between the supplier and buyer. 
  
  Related Information: 
  For more information about SAP's Livestock Procurement component and how to create an alliance agreement, please refer to SAP's official documentation on Alliance Agreements (https://help.sap.com/doc/saphelp_agr_lsp/7.5/en-US/f3/f3a9f8d2b611d1897e0000e8322d00/content.htm).