What is 'lower level contract' in SAP SD - Sales and Distribution?

lower level contract - Overview

• Component: SD

• Component Name: Sales and Distribution

• Description: A legally binding agreement that has been grouped with other contracts under a master contract so that data in all these contracts is consistent.

lower level contract - Details

• 
  Key Concepts: 
  A lower level contract in SAP Sales and Distribution (SD) is a type of contract that is created at a lower level in the organizational hierarchy. It is used to define the terms and conditions of a sales transaction between two parties. The lower level contract can be used to define the pricing, delivery, payment, and other terms of the transaction. 
  
  How to use it: 
  In SAP SD, lower level contracts are created in the Sales Order (VA01) or Contract (VA41) transactions. The lower level contract can be used to define the pricing, delivery, payment, and other terms of the transaction. The lower level contract can also be used to define discounts and other special conditions for a particular customer or product. 
  
  Tips & Tricks: 
  When creating a lower level contract in SAP SD, it is important to ensure that all of the terms and conditions are accurately defined. This will help ensure that the transaction is processed correctly and that all parties involved are aware of the terms of the agreement. 
  
  Related Information: 
  Lower level contracts are part of SAP SD's Contract Management functionality. This functionality allows users to create and manage contracts for customers and products. It also provides tools for tracking and managing contracts throughout their lifecycle.