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

SAP Term: customer contract

• Component: SD

• Component Name: Sales and Distribution

• Description: An outline sales agreement that contains special conditions negotiated between the vendor and a customer, for example, price, target value or target quantity. A customer contract is valid for a specified period. A customer submits a sales order to release materials or services from the amount agreed in the contract.

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• Key Concepts: 
  A customer contract in SAP Sales and Distribution (SD) is an agreement between a customer and a vendor that outlines the terms of a sale. It includes details such as the product or service being sold, the quantity, the price, and the payment terms. The customer contract also defines any special conditions that may apply to the sale, such as discounts or delivery dates. 
  
  How to use it: 
  In SAP SD, customer contracts are created in the Sales Order (VA01) transaction. The customer contract is then used to create sales orders and delivery documents. The customer contract can also be used to track sales performance and analyze customer trends. 
  
  Tips & Tricks: 
  When creating a customer contract in SAP SD, it is important to ensure that all relevant information is included. This includes the product or service being sold, the quantity, the price, and any special conditions that may apply. It is also important to ensure that all parties involved in the sale are aware of the terms of the contract. 
  
  Related Information: 
  For more information on customer contracts in SAP SD, please refer to the SAP Help Portal (https://help.sap.com/viewer/product/SAP_ERP_SD/6.0/en-US).