Enter General Purchase Agreement Information
Explanation
A purchase agreement is a general type of agreement. The purchase agreement will be
used for all the applicable purchase order lines that are created in purchase
orders or from the purchase
requisitions that are converted into purchase orders. The only exceptions are when a purchase order
is created from a supplier agreement release or from an order quotation.
This activity includes the registration of general information for a purchase agreement. It
is possible to connect both purchase parts and supplier assortments to a purchase
agreement. When a purchase order line is created, either manually or from a purchase
requisition, the conditions in a valid purchase agreement will be retrieved to the order
line.
Use the Step Pricing Basis list to specify the type of pricing for the
agreement, whether Cumulative or Order Line. This will help align
the supplier agreement better with the customer agreement in the flow keeping
them consistent. In Cumulative pricing, the price is calculated on a
cumulative basis, considering the previous supply quantities. This is the
default value for the supplier agreement and can be changed manually. Order
Line pricing is used for prices calculated per order line quantity.
For a supply chain relation, the ship-via code
is retrieved from the supplier as specified on the
Supplier/Address/Purchase Address Info tab. If the supplier agreement is
generated from an agreement quotation, and a ship-via code is specified, that
ship-via code will be used. The ship-via code on a supplier agreement overrides
the other ship-via codes when a purchase order line is manually entered or when
the purchase order originates from a purchase requisition (which does not
originate from a customer order).
Prerequisites
- The supplier must have been entered.
- The responsible buyer must have been entered on the
Procurement Basic Data/Buyers
tab.
- The ship-via code used in the supplier agreement must have been specified for
all the supplier addresses that will be used, or else the lead time calculations will not work.
- Supply chain parameters can be defined for the
supply chain relation. For external suppliers this can be done in the
Supplier
to Site Supply Chain Parameters window, and for internal suppliers
this can be done in the
Site to Site Supply Chain Parameters
window.
System Effects
- A purchase agreement header is created and the agreement can be used for entering
sites, valid periods, parts, and supplier assortments. The status of the purchase
agreement is Planned.
- A purchase agreement with the least Priority value will
fetch the price into purchase order if more than single Agreement exists
with the same attributes for a given period.
- The tax
calculation basis for the supplier agreement is based on whether or not the Use Price
Incl Tax check box is selected on the Supplier Agreement header.
- If the Use Gross Amounts check box is selected,
the values entered in the Maximum Amount field of the
Supplier/Periods tab will be inclusive of tax. Also, the amounts inclusive of tax
will be printed on the Supplier Agreement report.
Window
Supplier Agreement
Related Window Descriptions
Supplier Agreement
Supplier Agreement/General
Supplier Agreement/Activities
Procedure
- Open the Supplier Agreement window and click New.
- Enter a number for the supplier agreement; if you do not enter a number, the system will assign one
to the supplier agreement.
- Enter the supplier for which the supplier agreement is valid, either by entering the short code or
by using the List of Values.
- Enter a priority value to give priority among equally applicable
agreements for an instance.
- Enter the responsible buyer, either by entering the short code or by using
the List of Values.
- Optionally, enter the part assortment, either by
entering the short code or by using the List of Values.
- Select Purchase Agreement in the Agreement Type field on the
General tab.
- Enter and change the values in all the appropriate fields in the header and
on the General
tab.
- If the value of the Maximum Amount field on the
Supplier
Agreement/Periods tab
is to be
inclusive of tax, and you want to print the amounts inclusive of tax on the
Supplier Agreement Report, select the Use Gross Amounts check box.
- Save when completed.