A purchase agreement serves as a general type of agreement applicable to all purchase order lines created in purchase orders or converted from purchase requisitions, excluding cases where a purchase order created from a supplier agreement release or 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. 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.
Enter a value in the Supplier Hierarchy field if the agreement should be valid also for the subordinates to the agreement supplier in the hierarchy.
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).
Use Material Price Reference Agreement field to indicate which supplier agreement to base Material Prices on, either current Supplier Agreement or a Reference Agreement.
Price Decimal Rounding can be used to specify the rounding precision for prices, ensuring consistency in pricing calculations in the agreement.