A condition management system describes the set of rules for all invoice-effective rebates granted by a company (e.g. bonuses, rebates, cash discounts, etc.) as well as other downstream agreements (e.g. payment terms, delivery terms, etc.) to a customer.
All prerequisites and forms of conditions are captured in an underlying set of rules. As condition systems are applied individually, the list price of a good is transferred to the net price which is to be paid by the customer. Condition management systems are often defined on the basis of strategic selection criteria such as the turnover achieved by the customer in the previous year, competence or regional position. In order to avoid a dilution of condition management systems and to ensure the highest possible transparency towards the customer, many companies operate an active and data-based condition management.