Sales Agreements

Add a sales agreement that applies pricing terms to your sales order when a customer frequently buys from your company, such as offering a reduced price when buying an agreed-to quantity of an item over time.

A contract is a written document between buyer and seller. It specifies terms that apply for your customer. It allows the customer to receive a favorable price and for you to improve your future cash flow predictions.

Order Management can automatically apply contract terms to each sales order to achieve benefits.

Reduce processing time.
Reduce error.
Avoid negotiating contract terms for each sales order.
Avoid manually entering contract terms.

For example:

Example contract header and agreement lines

Each contract contains a header that specifies your business unit, such as Vision Operations, your customer who purchases the item, such as Computer Service and Rentals, and a number that identifies the contract, such as 101.

Each contract contains one or more agreement lines. Each agreement line contains attributes.

Attribute	Description
Name	Identifies the item. Each agreement line applies to one item, such as AS54888 Desktop Computer. If the contract doesn't include an item, you can still add it to the sales order, but the order won't apply an adjustment.
List Price	Starting price for the item.
Adjustment Type	Discount Percent. Discount Amount. Markup Percent. Markup Amount.
Adjustment	Numeric value of the adjustment.
Start Date	Date when the agreement goes into effect.
End Date	Date when the agreement expires.

Assume List Price for item AS54888 is $1,000 and the adjustment is a 10% discount. If your customer buys 80 laptops on order line 1 in sales order 75839, then the sales order calculates the remaining amount that's available for purchase in the agreement.

Calculation	Description
$1,000 list price minus $100 discount.	Price after discount for quantity of one: $900.
$900 discounted price multiplied by quantity 80.	Net price on order line: $72,000.

Note

The sales order only displays the agreement when the current date happens on or after Start Date, and on or before End Date. If the current date doesn't happen in this date range, then the sales order doesn't display the agreement.

If End Date is empty, then the agreement never expires.
Your order administrator sets up agreements and contracts. For details about them, including the ones you can select, quantities available, discounts that apply, and so on, contact your order administrator. For background, see Overview of Setting Up Sales Agreements in Order Management.