Sales Agreements and Sales Contracts

What are the key differences between Sales Agreements and Sales Contracts?
Sales Agreement
A sales agreement is a long-term agreement between business partners in which you can define conditions (for example, prices and terms of delivery) and releasable products. These conditions and products are valid for all contracts or sakes orders that a customer creates with reference to the sales agreement. 

You use sales agreements to offer (better) prices to a particular customer group (business partner type) for a particular list of products, without committing them to particular purchase quantities. 

Scheduling Agreement tcode:
VA31 - Create
VA32 - Change
VA33 - Display
Sales Contracts
A sales contracts are information related to quantity and value contracts. Therefore it delivers data on the target values and quantities of contracts for certain sold-to parties or sales organizations. It contains validity periods and released amounts as well as details about the contract status, for example, whether the contract is open, has expired or been rejected.

Contract tcode:
VA41 - Create
VA42 - Change
VA43 - Display

Service Level Agreements
A service level agreements are a subset of contracts where the customer is assured of certain services within a predefined period of time. Contains product and price agreements but not target values or target quantities. 

In a nutshell, sales agreement you don't specify the quantity while in the sale contract you will mention the BP along with the quantity.

See Also
Material Listing and Exclusion Functionality

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