Contracts for trading business in SAP - HAWA

For companies/divisions which are in trading business(no processing - either importing or buying locally and selling):

• Trading goods - Material type as HAWA (this can be found in Logistics Master Data : Material Master -> Material -> Control data -> Define material type attributes). For more information on Material Types, please follow the link.
• Material master record of this material type can contain purchasing and sales data
• Sales Document - either scheduling agreements or quantity contracts with pricing & its respective date of delivery can be used
• To create contracts - Logistics -> Customer Service -> Service Agreements -> Contracts -> Contract -> Create
• To create scheduling agreements - Logistics -> Sales and distribution -> Sales (then) Choose Outline agreement -> Scheduling agreement -> Create
• Advantage of using scheduling agreements are you can have your own delivery dates according to your client. From scheduling agreement you can directly create a delivery instead of going to sales order and then creating a delivery for the same.