Agreement Type - Purchasing

Agreement types are used in purchasing to classify supplier agreements. These can be blanket agreements, delivery schedule agreements and such.

Agreement types are defined in 'Purchase Agreement Type. Open' (PPS110). When entering an agreement, the agreement type selected will call agreement-specific fields for processing.

The following parameters are used to define an agreement type:


Purchase agreement

A normal agreement is used when prices, yearly requirements, delivery times, etc. are agreed. There are no call-offs or delivery schedules. A purchase order is created when needed with the appropriate quantities.

Blanket agreement

A blanket agreement is used to reserve a larger quantity from a supplier for later purchase or call-off. Each time a call-off is made the quantity ordered is reduced. A blanket agreement requires that the warehouse where delivery will be received is specified in each agreement line. As well, the availability survey for the warehouse is updated with the ordered quantity.

The following fields specific to this agreement type are opened:

Delivery schedule agreement

Delivery schedule agreements are used when regular deliveries are made from a supplier.

The following fields specific to this agreement type are opened:

Grower agreement

Grower agreements are used in industries such as agriculture where the supplier is paid based on product quality combined with an agreement unique settlement model.

Note: This agreement type cannot be used in association with a Freight Agreement, Loan Agreement or Exchange Agreement.
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