| # Overview of terms and conditions If a company uses functionalities such as vendor managed inventory (VMI), subcontracting, and allocations, multiple rules are applicable between business partners. To lay down all terms and conditions that are applicable between business partners in a particular situation, you can specify terms and conditions agreements. For example, you can register the terms and conditions regarding the financial ownership of goods for a specific functionality. You can specify purchase, sales, and internal terms and conditions agreements. Before you can use these agreements, you must link purchase agreements to purchase contracts, sales agreements to sales contracts, and internal agreements to enterprise unit relationships. Specifying terms and conditions For more information, refer to Setting up terms and conditions. Terms and conditions templates In a terms and conditions agreement, lots of data can be entered. To facilitate data entry, you can store default data in a terms and conditions template. A template is a default terms and conditions agreement, representing a business process, that has no business partner linked to it. The level of detail of the template data is user-definable. Based on this template, you can quickly generate new terms and conditions agreements for business partners. Terms and conditions templates also allow you to do the following: Simultaneously update multiple existing terms and conditions agreements derived from a specific template. Validate whether the generated terms and conditions agreements meet the business process represented by the template. For more information, refer to Terms and conditions templates. Retrieving terms and conditions If you use terms and conditions, an extensive search mechanism is used to retrieve the correct terms and conditions regarding the sale, purchase, or transfer of specific goods. For more information, refer to Retrieving terms and conditions. Related topics Setting up terms and conditions Terms and conditions templates Retrieving terms and conditions Vendor managed inventory Overview of subcontracting |