Sales contracts

A sales contract is an agreement between a customer and a supplier stating a specific price or discount for a specific period of time. Once the sales contract's validity period expires, the contract can no longer be used to sell the product for the contracted price. The functionality of sales contracts in SAP CRM is the same as in SAP ECC.

Sales contracts provide functionality such that a supplier can offer a lower price than the market price to extend their customer base and improve customer retention. Figure 7.1 shows a representation of contract management in SAP CRM:

Figure 7.1 – Contract management in SAP CRM

Here are the steps involved in the sales contract management cycle in SAP CRM:

1. The sales representative negotiates a price with the customer based on certain terms and conditions for a specific period.
2. The sales representative creates a contract based on their discussion with the customer and certain...