Why would you maintain price agreements in a service contract?

In SAP S/4HANA Cloud Private Edition, Service,price agreementsin a service contract define specific pricing conditions (e.g., discounts, fixed rates) for services or spare parts. The primary purpose isto automatically adjust the service order prices(Option D).

When a service order is created and linked to a service contract, the system applies the price agreements from the contract to the order’s items, ensuring consistent and contract-specific pricing without manual intervention. This automation enhances efficiency and accuracy in billing.

A and B:Defining yearly or monthly prices might be part of the contract’s billing plan, not the purpose of price agreements specifically.

C:Price agreements are not "selected" in the service order; they are automatically applied based on the contract.

"Price agreements in a service contract are maintained to automatically adjust prices in associated service orders, ensuring that contract-specific conditions are consistently applied."