What is customer outline agreement in SAP SD - Sales and Distribution?

SAP Term: customer outline agreement

• Component: SD

• Component Name: Sales and Distribution

• Description: A long-term contractual agreement between a sales organization and a customer concerning the delivery of materials or services according to fixed terms. A customer outline agreement is valid for a specific period of time. A sales area is responsible for the agreement and for fulfilling the contract.

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• Key Concepts: 
  A customer outline agreement is a contract between a customer and a vendor in SAP Sales and Distribution (SD) that outlines the terms of a purchase. It includes the quantity, price, and delivery date of the goods or services being purchased. The customer outline agreement also includes payment terms, such as discounts and payment deadlines. 
  
  How to use it: 
  In SAP SD, the customer outline agreement is created in the Sales Order (VA01) transaction. The customer outline agreement is then used to create sales orders for the customer. The customer outline agreement can be used to set up discounts for the customer, as well as payment terms. 
  
  Tips & Tricks: 
  When creating a customer outline agreement, it is important to ensure that all of the details are correct. This includes the quantity, price, delivery date, payment terms, and any discounts that may be applicable. 
  
  Related Information: 
  For more information on customer outline agreements in SAP SD, please refer to the SAP Help Portal (https://help.sap.com/viewer/product/SAP_ERP_SD/6.0/en-US).