Creating a vendor agreement

Vendor, Purch From

Type the vendor's identification code.

Description

Type a description for the vendor agreement.

Effective Date

Represents the date that the vendor agreement is first valid (the date that it becomes effective).

Expiration Date

Represents the date that the vendor agreement is last valid (the date it expires).

Last Invoice Allowed Date

Type the date that allows invoices to be added in Accounts Payable after the Expiration Date and up to the Last Invoice Allowed Date, but should not be before the Effective Date. Last Invoice Allowed Date can be changed.

Review Date

Type the Review Date, which occurs before the Expiration Date and/or Last Invoice Allowed Date. No other invoices can be entered after the review date. Likewise, prices do not default to any purchase orders or requisitions after this date.

Agreement Administrator

Identifies a contact person for this vendor agreement.

You must have previously defined the agreement administrator using PO Contacts (PO07.1).

Currency Code

Type or select the currency code that is used from this Vendor Agreement. If left blank, this field defaults to the company base currency code established in Company (GL10.1 ).

Per Order Minimum Amount

Type the minimum amount allowed to be ordered on this vendor agreement.

Per Order Maximum Amount

Type the maximum amount allowed to be ordered on this vendor agreement.

Lifetime Maximum Amount

Type the lifetime total amount that is allowed to be ordered on this vendor agreement.

Lifetime Maximum Edit

Select whether the lifetime maximum edits is applied to purchase orders or to purchase orders and requisitions.

Dual Source Agreement

Type the reference for the dual source agreement.

UOMs Must Match

Select whether the vendor agreement unit of measure must match that on the requisition or purchase order (for the price to default from the agreement). To use this feature, you must select Yes in the Use Agreement UOM field.

Use Agreement UOM

Select Yes so that the vendor agreement unit of measure defaults to the requisition or purchase order. When an item's cost depends on a specific unit of measure when ordering from a vendor, this feature helps to achieve that control.

Note: For more information, see the Knowledge Base article.

Notification Percent

Type a percentage amount so that when the amount ordered on the vendor agreement, when divided by the Per Order Maximum Amount, is equal to or greater than the percentage you enter in this field, a message is sent to the agreement administrator.

Note: To use this feature, you must also Type an amount in the Per Order Maximum Amount field and select a valid agreement administrator in the Agreement Administrator field.

Manufacturer Code/Division

Select the manufacturer's code, division, and description to identify who manufactured the item. You set up manufacturer's codes using Manufacturer Code (IC14.1).

Accounting Unit

This field contains the header default accounting unit that is used in defaulting of accounting unit into POVADIST.

Account

Select the general ledger account and subaccount for the vendor agreement item.

Post to Company

This field contains the header default post to company (also known as the distribution company) that is used in the defaulting of company onto POVADIST.

Taxable Flag

Select whether the item is taxable or tax exempt.

Tax Code

If the item is taxable, assign a valid tax code to it. You set up tax codes using Tax Code Master (TX01.1).

Include Add On Costs

Select yes to include AOC in the min, max, and Lifetime max calculations.

Include Tax

Select yes to include AOC in the min, max, and Lifetime max calculations.

Item Create Flag

Select how a Lawson item number should be created.

Note: The value you entered in the Vendor Agreement Def Item Create Flag field on Corporate Item Group (IC00.1) defaults here.

To change the default for the creation of a new item number, select one of the following values:

• Sequential: Creates an item number by adding one to the last sequential item number that was used.

• Assign: Creates an item number as the vendor item number, manufacturing item number, UPC, SKU, UPN, NDC, or GTIN.

• Manual: You assign the item number manually.

Item Assign Field

If the Item Create Flag is set to Assign, you must select the identifier that you want to assign to the item number.

Group Purchasing Organization

Identifies the group purchasing organization that negotiated the vendor agreement.

Stockless Flag

Select whether you want this agreement used for specific locations for pricing.

Rebate

Select whether all lines are eligible for rebates.

If the Rebate field is set to Yes for any of the vendor agreement lines, the Rebate field on the header cannot be set to Yes.

Rebate Percent

Type the rebate percentage to apply to purchases using this vendor agreement.

You must select Yes in the Rebate field to be able to type a rebate percentage.

Schedule Frequency

Select how often you want to receive items: weekly, biweekly, monthly, or quarterly.

Note: The Schedule Frequency field is required when you create standing agreements.

Maximum Release Number

Type the number of standing orders that will be released during the release schedule.

Note: You cannot define the duration of the agreement by the number of releases if multiple companies, defined on Vendor Agreement Participants (PO25.3), are associated with the agreement. You can use the Expiration Date field to select a date by which the vendor agreement expires.

Create AC Commitments

This field determines whether funds are committed to a specific activity when an agreement is released. It also indicates if the commitment is a header commitment or a line commitment or if there are no commitments at all.

Note: If you select header commitment or line commitment, the commitment is updated in the Project Accounting application. See the Project Accounting User Guide.

Create GL Commitments

This field determines whether funds are committed to a specific general ledger account/accounting unit when an agreement is released. It also indicates if the commitment is a header commitment or a line commitment or if there are no commitments at all.

Note: If you select header commitment or line commitment, the commitment is updated in the General Ledger application. See the General Ledger User Guide.

Commitment Company

You must select the company to create agreement header commitments for.

Commitment Accounting Unit

If you create an agreement header commitment, you must select an accounting unit for which to create the commitment.

Commitment Account

If you create an agreement header commitment, you must select an account for which to create the commitment.

Commitment Activity

If you create an agreement header commitment, you must select an activity for which to create the commitment.

Requisition Commitment Amount

This field displays the requisition commitment amount.

Note: The requisition commitment is relieved when the purchase order is released.

Close Commitment

This field will be blank until the committed agreement is closed.

To add lines for contract, catalog, blanket, or standing agreements, click the Lines button to access Vendor Agreement Line (PO25.6). To indicate that a contract line is eligible for a rebate (or what rebate percentage to apply), click the More button on the Line Detail tab.

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To add lines for service agreements, click the Service Lines button to access Service Agreement Line (PO25.7).

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Transfer to Agreement Pricing (PO25.2).

Defining agreement pricing

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Transfer to Vendor Agreement Participants (PO25.3).

Defining agreement participants

Release the agreement only when you have setup the agreement, including multiple distributions and spread commitments. You should release a vendor agreement line before using it on a requisition, purchase order, or in purchase order unit cost defaulting. In effect, you can approve a vendor agreement before it is put into use, and you can add or revise vendor agreements while it is in the unreleased state. Once a vendor agreement is released, it stays in the released state. If you need to change a released agreement, the agreement must re-pass all the release edits.