What are Sales Agreements?

Sales Agreements Foundational Features

A sales agreement has a fixed duration that can be divided into multiple schedules. Sales teams can add products or categories of products to a sales agreement, based on the product level of the sales agreement. The agreement terms of a sales agreement give sales teams visibility into key price, revenue, and quantity metrics for different products or categories across different schedules of the agreement.

Instead of manually comparing the actual revenue and quantity values, or actuals, from fulfilled orders against planned values, you can use sales agreements to pull out order information and view it in the agreement’s terms. With sales agreements, sales and operations teams can manage their inventory better, track customer compliance for committed orders, and get greater visibility into their run-rate business.

Sales teams can manage the complete lifecycle of sales agreements, from their creation to their renewal. They can revise agreement terms based on updated negotiations, market conditions, and inventory.

Sales teams can also collaborate on agreements with channel partners by using manufacturing Experience Cloud sites.

Watch this video to understand the foundational capabilities of Sales Agreements.

If you can’t watch the video in full screen, open the video on a new tab: Get Started with Sales Agreements in Manufacturing Cloud.

Revenue Management Features for Sales Agreements

Manufacturers can manage their run-rate business operations with greater control of their product pricing and catalog management processes by using Revenue Cloud features with sales agreements.

Catalog management teams can design sophisticated product catalogs and build a product portfolio. Key account managers can choose products from a catalog, configure product attributes, and add products to sales agreements by using an intuitive product browsing experience.

Pricing teams can establish price and discount calculation rules for products based on factors such as product volume and quantity sold. Key account managers can generate optimal, rules-driven prices for products in a sales agreement. Key account managers can get insights into each step in the price and discount calculations.

Sales Agreements in Commercial Operations

Let’s go over how business transactions are represented in Manufacturing Cloud, and how sales agreements come into the picture.

Leads

Track prospects who are interested in buying a product with leads.

Opportunity

Convert a lead into an opportunity to track deals in progress.

Quotes

Create quotes to show your customers the prices of the products and services that you offer.

Contracts

Define contracts to establish the terms for doing business with your customers.

Sales Agreements

Create sales agreements to track the planned and actual sale of products and services over a period of time.

Orders

Track customer requests for products and services by using orders. You can place orders against quotes, sales agreements, and contracts. Standalone orders and orders associated with contracts contribute to the actuals of sales agreements.