Purchase Agreement
A contract with one vendor for a period: items, quantities and agreed prices. While it is valid, a purchase order line for that vendor, item, unit, currency and project takes its price from the agreement before looking at the price list.
What it is for
It holds agreed prices so buyers do not type them. The price is picked up only when the agreement's commitment is the item-quantity commitment, the agreement is not blocked, the order's posting date is between Date From and Date To, and the vendor, currency, item, variant, unit and project all match. An agreement for the project wins over one without a project. When no agreement matches, the line is priced from the purchase price list.
Purchase orders can also copy lines from a released agreement with the Purchase Agreement button.
The rule people get wrong: the agreement does not stop you ordering more than its Quantity, or below its Minimum Amount. Those columns are recorded, not checked.
Every field in plain words
General
| Field | What it means | What to put |
|---|---|---|
| Purchase Agreement | The agreement number | Given on Create |
| Subject | What the agreement is about | Required |
| Agreement Classification | The kind of agreement, from Purchase Agreement Classification | Required |
| Agreement Commitment | What is committed | Required. Only the item-quantity commitment feeds prices to orders |
| Vendor Account | The vendor | Required |
| Vendor Account For Invoice | Who bills | Required. Copies Vendor Account |
| Responsible | Who looks after it | |
| Date From, Date To | The period | Required. The lines take the header's Date To on save |
| Project | The project it is for | Optional |
| Vendor Requisition No | The vendor's reference | |
| Currency | The agreement currency | Required |
Basic Data
| Column | What it means | What to put |
|---|---|---|
| Item No, Name, Item Variant | The item | Item Variant required for an item kept by variant |
| Procurement Category | Instead of an item | |
| Unit, Quantity, Max Enforced | Agreed unit and quantity | Recorded |
| Price, Gross Amount, Discount %, Discount Amount, Net Price, Net Amount, Tax Amount, Amount Including Tax | Agreed price and amounts | Price is what orders take |
| Cost Elements, Landed Amount, Landed Price | Expected charges | |
| Delivery Mode | Transport | |
| Catch Weight Unit, Catch Weight Quantity | Goods by weight | |
| Date From, Date To | Line period | |
| Purchase Group, Minimum Amount | Recorded | |
| Project, Activity | Project costing | |
| Line Text | Free text |
What it is connected to
- Purchase Order - takes its price, or copies its lines.
- Purchase Agreement Classification - groups agreements.
- Lists and reports - the Purchase Agreement print.
If something looks wrong
- "Basic Data - Line ID: 0001 - Item Variant Cannot be Empty". Pick the variant.
- The order did not take the agreed price. Check the commitment, the dates, that the agreement is not blocked, and that the order's currency, unit and project match the agreement line exactly.