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.

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.
• For a company using the VAT tax regime, 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

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 the responsible buyer, either by entering the short code or by using the List of Values.
5. Select Purchase Agreement in the Agreement Type field on the General tab.
6. Enter and change the values in all the appropriate fields in the header and on the General tab.
7. 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.
8. Save when completed.