Sale Agreement
A Sale Agreement records what a customer has agreed to buy over a period: the items, the quantity of each and the agreed price. Sales orders can take their prices from it, copy its lines, and, for customers who must buy only under contract, be held to its items.
What it is for
Three things read an agreement:
- The price engine. When a sales order names this agreement in its Sale Agreement field, the price of an item line is looked for here first: same customer, the order's currency, valid on the posting date, not blocked, same item and unit, same project, and the item commitment as Agreement Commitment. If found, it is the line price and the line shows Price Origin From Sales Agreement. An order that names no agreement never takes an agreement price.
- Copy From on the Sales Order. Lines are copied with the quantity the agreement still has left. A sales order cannot order more than that balance.
- The customer's agreement controls. A customer marked to require a sale agreement must name one on every sales order; a customer marked agreement items only can order only the agreement's items.
The one rule people get wrong: the order must name the agreement, and match it. Without the agreement on the order, or in another currency, unit or project, or outside Date From and Date To, there is no agreement price. And when the order also has a Pricing Group, Save prices the lines again from the price list without the agreement, so the agreement price is replaced. Leave Pricing Group empty on orders priced by agreement.
Every field in plain words
General
| Field | What it means | What to put |
|---|---|---|
| Sale Agreement | The agreement number | Required, unique |
| Subject | What the agreement is | Required |
| Agreement Classification | The kind of agreement | Required. From Sale Agreement Classification |
| Agreement Commitment | What the customer commits to | Only the item commitment gives prices to orders |
| Customer | The customer | Required. Picking it fills Customer for Invoice |
| Customer for Invoice | Who is billed | Required |
| Responsible | Who looks after the agreement | |
| Block | Stop using the agreement | A blocked agreement gives no prices |
| Notes | Free text |
Period, references and currency
| Field | What it means | What to put |
|---|---|---|
| Date From / Date To | When the agreement is valid | Required. Prices apply only to orders dated in between |
| Project | A project the agreement is for | The order's project must be the same; an agreement without a project prices only orders without one |
| Customer Reference / Customer Requisition No | The customer's own references | |
| Currency | The agreement currency | Required. Prices apply only to orders in this currency |
Sales Agreement Lines
| Column | What it means | What to put |
|---|---|---|
| Item No / Name / Item Variant | The item agreed | Item Variant shows when the inventory setting asks for variants, and is then required for a variant item |
| Unit | The agreed unit | The order must use the same unit to get the price |
| Quantity | The agreed quantity | The balance sales orders can copy |
| Price | The agreed unit price | Must be more than zero |
| Gross Amount | Quantity × Price | Read only |
| Discount % / Discount Amount, Net Price, Net Amount | An agreed discount | Shown when the sales setting's Discount on line is ticked |
| Date To | The line's end date | Fills from the header |
| Line Text | Free text |
How to configure it
- On the customer released in the company (Release Customer In Legal Entity), mark whether the customer requires a sale agreement, and whether only agreement items may be ordered.
- On Sales and Distribution Setting, tick Required Sale Agreement on Sales Order to show the Sale Agreement field on every order, even for customers who do not require one.
Scenarios
- A supermarket chain with a yearly rate contract. One agreement per year and currency, one line per item at the contract price. Orders for that chain price from it without a price list.
- A government buyer who may only order what was tendered. Mark the customer as agreement items only. An order line for any other item is refused.
What it is connected to
- Sales Order - prices from, copies from, and is held to the agreement.
- Sale Agreement Classification - classifies agreements.
- Order to cash.
If something looks wrong
- "Line ID: ... - Price cannot be zero or negative" - give every line a price.
- "Sales Agreement Lines - Line ID: ... - Item Variant Cannot be Empty" - the item has variants; pick one.
- The order does not take the agreement price - the order must name the agreement in Sale Agreement; then check currency, dates, unit, project, Block and the Agreement Commitment.
- The agreement price was there, and changed on Save - the order has a Pricing Group, and Save reprices from it without the agreement. Clear the Pricing Group on such orders.
- "Sale Agreement is mandatory for this customer." on the order - the customer requires an agreement; pick one on the order.
- "Basic Data - Line ID: ... cannot exceed Balance Quantity ... in Item Request: ..." on the order - the agreement line has less left than you ordered.