Global Trade Expert Global Trade Expert  •  Thomas Werdelmann
SAP GTM Global Trade Management  •  SAP GTS Global Trade Services
SAP Consulting  •  SAP Development  •  Project Management

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GTM: Trading Contract

Essentially the Trading Contract (abbreviated: TC) is used for collection of all data for a trading transaction, for single sided sales orders and purchase orders, as well for both at the same time. There are trading contracts as single sided TCs as well as two sided TCs. A single sided TC is to maintain just a purchase order or a sales order. A two sided TC is to maintain purchase and sales order data within one document at the same time.

In a two sided TC the purchase side and the sales side are already linked together and therefore a data interchange between both is directly possible, for example for calculation and profit simulation. There is also a possibility to create a link between single sided sales TCs and purchase TCs, for what GTM serves the association.

A Trading Contract collects all data of a trade, ea. business partners (and their roles) and the items to trade, quantities and price elements, currancies, payment terms, delivery terms etc. Also different text types as well different message type (print outs, mails,...) for external and internal partners can be handled within a TC.

The name "Contract" does not mean automatically a frame contract or something else like it is used in the business world, because it's more a technical document within SAP GTM. But also this can be covert by a TC within GTM.

A TC will have subsequent documents within SD or/and MM, if it is used to handle deliveries and invoices. Therefore in this case the modules SD and MM are also needed.
If no subsequent documents of a TC will be created within SD and MM, the TC is defined as Pre-Contract. A Pre-Contract will never has logistical subsequent documents in SD and MM, but it can has other TCs as subsequent documents. That means, a Pre-Contract will never issue directly deliveries in the logistics.
For example, a Pre-Contract might be used to cover frame contracts, offers or inquires.

GTM - Trading Contract


Document flow and subsequent documents:
With the document flow it is easy to track, if and which subsequent documents have been created. It doesn't matter if these documents are other documents within GTM or the logistics of SD and MM or accounting. Additionally it's possible to change directly into the details of the listed documents with a simple mouse click on any entry.

Global Trade Management access via the trading contract the logistics to create purchase orders in the "Material Management" (MM) or sales orders in the "Sales & Distribution" of SAP ECC. But all following process steps within the logistics, e.a. deliveries, goods movements, invoices or invoice verfication, will keep in the logistics of SD and MM like before. But all these steps can be conrolled and automized via the Trading Execution Workbench (TEW) by GTM as well.

Status control /- management:
SAP GTM provides with an own status management with release procedures an clear control over the TC. For example it is easy to control, if subsequent documents are allowed to be created. Completeness check and risk check, for example credit management, can be done and shown within the status screen of the TC. If the GTM system is connected to a GTS system (Global Trade Services), it's possible to get status information for foreign trade control as well.

GTM: TC - status