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:
- Number series
- Delivery schedule agreement
- Volume based agreement
- Lead time-influenced agreement
- Discount agreement
- Item / Supplier check
- Blanket agreement
- Loan agreement
- Exchange agreement
- Automatic closing of agreement line
- Self-billing agreement.
- Grower Agreement
- Auto Fulfillment
Description
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:
- Warehouse
- Update material plan.
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:
- Definitive delivery schedule
- Preliminary delivery schedule
- Forecast days
- Number of print generations
- Warehouse
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.
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Parameter Grower agreement must be specified.
Note: This option is only available where parameter 409 'Grower Contract Management' is set in 'Company. Connect Division' (MNS100/K)..
- Where the agreement line status is to be automatically updated when the received quantity covers the agreed quantity, the 'Auto Fulfillment' parameter must also be specified.
- Self-Billing must be activated.