Managing Agreements with Suppliers

This document explains how you create, print, and cancel an agreement with a supplier.

Outcome

A purchase agreement is created and printed as a valid agreement. Also, you can cancel a valid agreement. A canceled agreement becomes an old agreement, which can then be updated and created as a different agreement.

Uses

The purchase agreement can be used in planned purchase orders and in purchase orders.

How the System Is Affected

The following files are updated:

Before you start

The parameters in Define Settings for Agreements must be defined.

Follow These Steps

  1. Create a Purchase Agreement

    Create a purchase agreement when appropriate quantities such as price, yearly requirements, and delivery times are agreed upon with the supplier.

    A purchase agreement can be created manually from 'Purchase Agreements. Open' (PPS100) and defaulted to a purchase order when an order is placed with a supplier.

    An agreement can consist of lines, and the lines can represent agreements on special items or groups of items. The prices can be volume-based, which means that a price list can be registered for the item.

    An agreement can also be created manually or automatically from a quotation. When a purchase quotation is approved, it can be copied to an agreement from 'Purchase Agreement. Create fr Quotation' (PPS150) or by selecting option 32 in 'Request for Quotation. Open' (PPS130).

  2. Print a Purchase Agreement

    You can print a purchase agreement for physical references. Use option 6 = Print Documents in 'Purchase Agreements. Open' (PPS100/B).You can also print the purchase agreement from 'Purchase Agreement. Print Documents' (PPS530/E) by raising the status to 30.

    An agreement report, displaying data from the agreement lines, can be printed from 'Purchase Agreement. Print Report' (PPS535/E).

  3. Cancel a Purchase Agreement

    You can cancel a purchase agreement when the agreement expires and you no longer need it. You can manually cancel a purchase agreement by changing the status to 90 in 'Purchase Agreements. Open' (PPS100/B).

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