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

System Effects

Window

Supplier Agreement

Related Window Descriptions

Supplier Agreement
Supplier Agreement/General
Supplier Agreement/Activities

Procedure

  1. Open the Supplier Agreement window and click New.
  2. Enter a number for the supplier agreement; if you do not enter a number, the system will assign one to the supplier agreement.
  3. Enter the supplier for which the supplier agreement is valid, either by entering the short code or by using the List of Values.
  4. Enter a priority value to give priority among equally applicable agreements for an instance.
  5. Enter the responsible buyer, either by entering the short code or by using the List of Values.
  6. Optionally, enter the part assortment, either by entering the short code or by using the List of Values.
  7. Select Purchase Agreement in the Agreement Type field on the General tab.
  8. Enter and change the values in all the appropriate fields in the header and on the General tab.
  9. 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.
  10. Save when completed.