Sales Agreement Management

  • Release version: Washingtondc
  • Updated August 1, 2024
  • 1 minute to read
  • Sales Agreement Management is an application that captures the scope and conditions from a quote for future sales transactions, over a specified period between a buyer and a seller.​

    Sales Agreement Management can be a separate application or part of the Sales and Order Management application.

    A quote is a formal offer for products and services, proposed at specific prices and related payment terms, which is sent to a prospective customer. Only after a quote is completed or closed, a sales agreement can be generated.

    • Details about the buyer and seller involved in the transaction
    • Validity period of the agreement
    • Details of the products and services to be supplied
    • Specific products and services​: Quantities​ and pricing

    Sales agreement workflow: Quote-to-sales agreement

    Sales agreement and Sales agreement lines are based on quote and quote lines using the same product offerings​.

    Figure 1. Sales Agreement Workflow
    Sales Agreement Workflow.

    Sales agreement line items

    In a sales agreement, a line item refers to any product or service being sold by the seller. These offerings can range from simple items to more complex ones that are configurable or bundled together. Each offering may also have specific features or characteristics. A line item might be a particular version of a product, a combination of different product configurations, or a category of products. A single agreement can include multiple line items.

    Sales agreement price list

    In a sales agreement, the prices for products and services that are negotiated and finalized are called price lists. These lists specify the agreed-upon prices for various items included in the agreement. When a sales order is placed based on a sales agreement, these price lists are used to determine the pricing of the order. This ensures that the terms negotiated in the sales agreement are consistently applied to all sales transactions under that agreement.