What is contract definitization in SAP SD - Sales and Distribution?

SAP Term: contract definitization

• Component: SD

• Component Name: Sales and Distribution

• Description: the agreement on, or determination of, contract terms, specifications, and price, which converts the undefinitized contract action to a definitive contract.

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• Key Concepts: 
  Contract definitization is a process in SAP Sales and Distribution (SD) that allows customers to create contracts for goods and services. This process involves creating a contract document that outlines the terms of the agreement between the customer and the vendor. The contract document includes details such as the quantity of goods or services to be provided, the price, payment terms, delivery dates, and any other relevant information. Once the contract is created, it can be used to manage the relationship between the customer and vendor.
  
  How to use it: 
  In SAP SD, contract definitization is used to create contracts for goods and services. To create a contract, users must first enter the relevant information into the system. This includes details such as the quantity of goods or services to be provided, the price, payment terms, delivery dates, and any other relevant information. Once all of this information has been entered into the system, users can then create a contract document that outlines all of these details. The contract document can then be used to manage the relationship between the customer and vendor.
  
  Tips & Tricks: 
  When creating a contract in SAP SD, it is important to ensure that all of the relevant information is entered accurately. This includes details such as the quantity of goods or services to be provided, the price, payment terms, delivery dates, and any other relevant information. It is also important to ensure that all parties involved in the contract are aware of its contents before it is finalized.
  
  Related Information: 
  Contract definitization is just one part of SAP SD's sales process. Other processes include pricing, billing, shipping, and more. For more information on these processes and how they work together in SAP SD, please refer to SAP's official documentation.