Define Settings for Agreements

This document explains how to define purchase agreement for a supplier.

Outcome

The customer and supplier can enter an agreement that covers items, prices, discounts, and terms and conditions for a specific period of time.

The following files are updated:

Purchase Agreement Header (MPAGRH)
Purchase Agreement Line(MPAGRL)
Purchase Agreement Prices (MPAGRP )

The purchase agreement types defined in (PPS110/B) can be used while purchase agreements are created in (PPS100).

Before you start

A number series that has type 25 must be defined in 'Number Series. Open' (CRS165).

Follow These Steps

Start 'PO Type. Open' (PPS095).
On the F panel, select 'Multiple agreements per PO' and 'Agreement check - PO entry'.
Start 'Purchase Agreement Type. Open' (PPS110).
On the B panel, enter a new agreement type using three alphanumeric characters.
Select New to create a record.
On the E panel, enter the name, description, and number series. Depending on the type of agreement, select the options Delay schedule agreement, Volume based, Lead time, Discount agreement, Blanket agreement, Loan agreement, Exchange agreement, Close line auto, and Self-bill activity.
Press Enter to continue to the B panel.

Parameters to Set


Program ID/Panel	Field	The field indicates …
(PPS095/F)	Multiple agreements per PO	…whether a purchase order contains more than one agreement number. The valid alternatives are: 0 = No 1 = Yes When you enter alternative 0, automatically created purchase orders are divided and manually created orders are locked for entry.
(PPS095/F)	Agreement check - PO entry	…if the agreement number on the purchase order lines can be compared to the number in the agreement file. The valid alternatives are: 0 = Agreement number is not mandatory. If an agreement number is entered, then it must correspond to the number in the agreement file. If not, then an error message is displayed. 1 = Agreement number is mandatory. If an agreement number is not entered or does not correspond to a number in the agreement file then an error message is displayed.
(PPS110/B)	Agreement type	…how a purchase agreement is processed in different situations. Agreement type 999 is fixed and refers to a general agreement. A general agreement is an agreement whose price information is updated in (PPS040).
(PPS110/E)	Number series	…how to define the ID of the number series that will be used for purchase agreements. A number series is identified by the numbers series type.
(PPS110/E)	Delay schedule agreement	...if the fields for delivery schedule ranges are to be opened in the purchase agreement. The valid alternatives are: 0 = No 1 = Yes.
(PPS110/E)	Volume based	…if the agreement can include volume-based prices and discounts. The valid alternatives are: 0 = No 1 = Yes
(PPS110/E)	Lead time	…whether it is possible to update the supplier's lead time on a purchase agreement. The valid alternatives are: 0 = No 1 = Yes
(PPS110/E)	Discount agreement	…whether the agreement is a discount agreement. The valid alternatives are: 0 = No 1 = Yes
(PPS110/E)	Blanket agreement	…if the purchase agreement can include blanket agreement lines. The valid alternatives are: 0 = No 1 = Yes The blanket agreement line is used for reserving a greater quantity at the supplier's end .The quantity decreases each time a purchase order is created. On the blanket agreement line, it can be determined if the agreed quantity must be updated and as well as when the reservation must be entered in the material plan.
(PPS110/E)	Loan agreement	…if the purchase agreement is a loan agreement. The valid alternatives are: 0 = No 1 = Yes A loan agreement is mainly used in the maintenance business to enable temporary loaning of items and spare parts until a new one can be repaired or bought. To calculate the daily cost for the loaned item charges can be defined in (PPS104).
(PPS110/E)	Exchange agreement	…if the purchase agreement is an exchange agreement. The valid alternatives are: 0 = No 1 = Yes An exchange agreement is mainly used in the maintenance business to sell old items and buy new items.
(PPS110/E)	Close line auto	…whether the agreement lines must be closed when the agreed quantity is supplied. The valid alternatives are: 0 = No, status remains 20 1 = Yes, status is changed to 90=Closed Note: This is valid only if the agreed quantity is indicated on the agreement line.
(PPS110/E)	Self-bill activity	…whether the purchase agreement must be connected to a self-billing agreement. Self-billing agreements are used when supplier invoices are generated from received lines. The valid alternatives are: 0 = No, the purchase agreement must not be connected to a self-billing agreement. 1 = Yes, the purchase agreement must be connected to a self-billing agreement.