Vendor agreement

Note: See Chapter 4 for information about setting up your cost defaulting hierarchy to include contract, catalog and blanket agreements.

A vendor price agreement, also referred to as a vendor agreement, provides the item cost for purchase orders and requisitions. You must set up a cost defaulting hierarchy to rank agreements in the order that you want item costs to default on purchase orders and requisitions. The Purchase Order application searches for item costs on specific vendor agreements and defaults the costs in the order that you selected.

You can define the cost defaulting parameters at the company level when you set up your purchase order company.

Vendor agreements store item costs and order information within procurement groups. There are five different types of vendor agreements: contract, catalog or price quote, blanket, standing, and service.