Value Contracts in Sap Sales and Distribution (SD)

In SAP Sales and Distribution (SD), Value Contracts are essential for managing long-term agreements with customers based on target monetary values rather than quantities. This document provides an in-depth walkthrough of two types of value contracts: General and Material-Specific, highlighting their configuration, usage, and business relevance.
We begin by exploring the Value Contract – General, which allows flexible sales of a variety of materials under a single target value. You’ll learn how companies like Walmart can commit to annual purchases of assorted Apple products, and how SAP SD prevents further sales once the contract’s value threshold is met.
Next, we dive into Value Contract – Material-Specific, which locks down the target value per material. This is useful when businesses want to control value limits for each product, as seen in examples like Walmart purchasing HP laptops under specific budget limits.
This guide also outlines the step-by-step configuration using key T-codes like:
- VOV8, VOV7, VOV4, VOV6, VOV5 for setting up document types, item categories, and schedule lines
- VA41 for creating the contract
- VA01 and VA43 for creating and tracking referenced sales orders
Each configuration is linked to real-time business examples and practical SAP navigation, making it an ideal reference for SD consultants and users alike.
To access the full step-by-step configuration with examples in the SAP system, download the detailed document below.
Author
Anusha Muttukundu
SAP SD Consultant
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