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).