Price agreement
A price agreement is a pricing tool set up in the Purchase Order application that provides the item cost (unit cost) for purchase order and requisition lines. If you have set up a cost defaulting hierarchy for your company that specifies price agreements, certain price agreements might be referenced for item costs.
Price agreements store item costs and order information within procurement groups. There are three types of price agreements that apply to requisitions: contract, catalog or quote, and blanket.
Contract price agreement
A contract price agreement contains a list of items and unit cost information for each item arranged between your company and the vendor. You can set up the cost defaulting structure at the company level to reference contract prices when creating a purchase order or a requisition. For example, your company might have a contract for copier paper with two different vendors. One vendor is your main supplier and the other is your secondary supplier.
Catalog or quote price agreement
A catalog or quote price agreement is a list of items and unit costs supplied by a vendor. You can set up the cost defaulting structure at the company level to reference catalog prices when creating a purchase order or a requisition. For example, your company might have a catalog price agreement for office supplies.
Blanket price agreement
Blanket price agreements differ from other price agreements in that they create releases from an existing purchase order. You can pick and select which items you want to order from a blanket order. When creating requisitions, you can set up the cost defaulting structure to reference blanket prices. For example, your hardware company might have a blanket order for interior paint in a variety of colors. The agreement contains a start date, an end date, and a minimum order amount.
See the Purchase Order User Guide for more information.