Summary
In this module, you learned about several types of agreements that are available in Supply Chain Management.
A sales agreement - Is a contract that commits the customer to buying products in a specific quantity or for a specific amount over time in exchange for special prices, discounts, and other terms, such as payment and delivery terms.
A purchase agreement - Is a contract that commits an organization to buying a specified quantity or amount by using multiple purchase orders over time. In exchange for this commitment, the buyer receives special prices and discounts.
Trade allowance management - Helps companies manage sales promotion programs that offer retail "pay-for-performance" monetary rewards to customers that achieve volume and behavioral goals. The feature’s capabilities are designed for companies that focus on comprehensive promote-to-profit processes, from promotion fund budgeting and allocation, to allowance contract setup, to claims creation and processing, to payment processing, to promotion effectiveness analysis.
Broker contract management - Helps companies better manage their brokerage agreements by automating tasks that are involved in administering, tracking, and paying the fees that are due to brokers.
Royalty contract management - Is for companies that exercise the right to use a third party's assets and/or intellectual property. It helps companies better manage their royalty agreements by automating tasks that are involved in administering, tracking, and making royalty payments.
Vendor rebates - Help companies better manage their supplier rebate programs by automating tasks that are required to administer, track, and claim rebates that are earned. A vendor rebate agreement is a record of a contract with a vendor that specifies the negotiated terms and conditions under which the company qualifies for a monetary reward in return for achieving preset purchase targets.