In SAP S/4HANA Service, a service contract functions as a long-term agreement with a customer, often including specific pricing terms. To apply these terms, you maintain "price agreements" by creating specific pricing condition records for products (e.g., spare parts) and services directly within the contract items. When a service order is subsequently created and linked to this contract, the system's pricing determination logic automatically identifies and applies these pre-agreed prices from the contract to the corresponding items in the service order. This ensures billing accuracy and adherence to the contractual terms.

A. A billing plan dictates the schedule and dates for invoicing (e.g., monthly, quarterly) but does not determine the actual prices for the products or services being billed.

B. "Maintain contract price" is a generic business term. "Price agreements" refers to the specific SAP functionality of maintaining pricing conditions within the contract document to be used later.

D. Price lists are a general pricing tool that can be assigned to a customer. However, contract-specific prices (price agreements) are more specific and take precedence over general price lists.

1. SAP Help Portal

SAP S/4HANA

Service Contract Management: "You can define specific prices for services and spare parts at the item level of a service contract. When you create a service order that refers to the service contract

the system determines these prices and copies them to the service order." This functionality is the essence of a price agreement. (See section: Service Contract Management -> Pricing in Service Contracts).

2. SAP Help Portal

SAP S/4HANA

Pricing in Service Transactions: The documentation on pricing determination explains the access sequence

where the system searches for valid condition records. A key source for these records is a preceding document like a service contract

which acts as the price agreement. (See section: Service -> Basic Functions -> Pricing -> Pricing in Service Transactions).

3. SAP Training Course S4700 (Service Processing in SAP S/4HANA): Unit on Service Contracts details the process of creating contract items and maintaining specific pricing conditions for them. The course explains that these conditions are then automatically determined in follow-up service orders

demonstrating the concept of a price agreement. (Refer to S4700 course materials

Unit: Service Contracts).