What is ship-and-debit agreement in SAP (IS-HT-DRM - Distributor-Reseller-Management)?

SAP Term: ship-and-debit agreement

• Component: IS-HT-DRM

• Component Name: Distributor-Reseller-Management

• Description: A contractual agreement between a distributor/reseller and a manufacturer/supplier under which a distributor/reseller can sell stock to an end customer and then debit the manufacturer/supplier for an amount determined by the terms of the agreement. The application of a ship-and-debit agreement results in a post-facto reduction in the purchase price of stock. Distributor/resellers can, therefore, offer the end customer the stock at a reduced price without reduction in their normal profit margin. A ship-and-debit agreement is maintained as a standard quantity contract on the manufacturer/supplier side, and as a pricing condition type on the distributor/reseller side.

Smart SAP Assistant

• Key Concepts: 
  Ship-and-debit agreements are a type of contract used in the IS-HT-DRM Distributor-Reseller-Management component of SAP. This agreement allows a company to ship goods to a customer and debit their account for the cost of the goods at the same time. This eliminates the need for a separate invoice and payment process, streamlining the transaction process. 
  
  How to use it: 
  Ship-and-debit agreements can be set up in SAP by creating a contract between the company and customer. The contract should include details such as the goods to be shipped, the cost of the goods, and any payment terms. Once the contract is created, it can be used to automatically generate shipments and debit the customer's account when goods are shipped. 
  
  Tips & Tricks: 
  When setting up ship-and-debit agreements in SAP, it is important to ensure that all details are accurate and up to date. This will help ensure that shipments are processed correctly and that customers are not overcharged or undercharged for their purchases. 
  
  Related Information: 
  Ship-and-debit agreements are just one of many features available in SAP's IS-HT-DRM Distributor-Reseller-Management component. Other features include order management, pricing management, and inventory management. All of these features can help streamline business processes and improve customer satisfaction.