What is group master contract in SAP SD - Sales and Distribution?

SAP Term: group master contract

• Component: SD

• Component Name: Sales and Distribution

• Description: A document that contains only header data. Contracts for a customer are grouped as lower level contracts under one group master contract. The master contract data is valid for all lower level contracts.

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• Key Concepts: 
  A group master contract is a type of contract in SAP Sales and Distribution (SD) that allows customers to purchase multiple items from a single contract. This type of contract is useful for customers who need to purchase multiple items from the same supplier, as it simplifies the process and reduces paperwork. 
  
  How to use it: 
  To create a group master contract in SAP SD, you must first create a customer master record. Once the customer master record is created, you can create a group master contract for the customer. The group master contract will contain all of the items that the customer wishes to purchase from the supplier. Once the group master contract is created, you can then create individual contracts for each item that the customer wishes to purchase. 
  
  Tips & Tricks: 
  When creating a group master contract, it is important to ensure that all of the items that the customer wishes to purchase are included in the contract. This will help to ensure that all of the items are purchased at the same time and that there are no discrepancies between what was ordered and what was received. Additionally, it is important to ensure that all of the terms and conditions of the contract are clearly stated so that there are no misunderstandings between the customer and supplier. 
  
  Related Information: 
  For more information on creating group master contracts in SAP SD, please refer to SAP's official documentation on creating contracts in SD. Additionally, there are many online resources available that provide step-by-step instructions on how to create group master contracts in SAP SD.