1. Home
  2. /
  3. Setup Guides
  4. /
  5. Purchase Pricing and Supplier...
  6. /
  7. Supplier agreements
  8. /
  9. Setting up supplier agreements

Setting up supplier agreements

Related topics

What this document contains:

Activate keys in Supplier agreement keys table

This table is a flexible user-defined structure. By assigning a key to a general supplier agreement you create a selection criteria, which is used when the system searches for the correct purchase price. You can only enter one key per agreement. If several agreements exist for a supplier, the keys and their pre-defined sequential order in this table decide the validity of the agreements.

Prerequisites
You must first activate and sequence the keys in this table. Once the key is activated you can use it to define your criteria.

The following keys are preloaded but can be changed:

Supplier agreement keys
Item Item category 3
Item discount group Item category 4
Item price group Item category 5
Item group Item category 6
Item account group Item family
Item category 1 Item sector
Item category 2  

The price will only be retrieved from a supplier agreement if there is a match between:

  • supplier – key
  • item – key
  • agreement currency – purchase order currency
  • agreement unit – purchase order unit
  • agreement base – purchase order/target value/date range

The discount will only be retrieved from a supplier agreement if there is a match between:

  • supplier – key
  • item – key
  • agreement base – purchase order/target value/date range

Set up a supplier agreement

File Setup description
Work with supplier agreements Click Add on the initial panel.

On the detail panel complete the following fields:

    Supplier
    Enter the supplier code for which you are setting up a supplier agreement.
    Agreement
    Enter the number that identifies this agreement.
    Description
    Enter a description of the agreement.
    Agreement base
    Enter the terms, from the Panel value control file, on which the agreement will be based. For the purpose of this example, enter T (Time based). The system will base the price calculations on the agreement’s validity period specified in the Valid from/to fields.
    Valid from
    Enter the starting date from which the agreement is valid.
    Valid to
    Enter the ending date to which the agreement is valid.
    Item related key
    Enter a valid key from the Supplier agreement keys table. If you wish to enter an item-related agreement, the Item key is mandatory. (See Connect an item-related agreement to a supplier agreement for instructions on creating item-related agreements.)

Text
If you want to enter any text to describe the agreement, click Text to start the Text editor.

Click OK to update and return to the previous panel.

You have entered a general agreement for your supplier containing basic terms and conditions regulating the price you will pay. See Connect an item-related agreement to a supplier agreement for the next step in the process.

Connect an item-related agreement to a supplier agreement

File Setup description
Work with supplier agreements
  1. On the initial panel, select the applicable agreement and click Details
  2. You access Work with supplier agreements, Details. Note: The terms and conditions that are specified in the general supplier agreement can be changed and an exception made for a particular item. If the terms in the general agreement are also valid for the item on detail level, click Add.
  3. You access the detail panel. You can add as many item-related agreements as you want to the general agreement. On this panel, you also define the pricing method to be used on the purchase order. Complete the following fields:
    4. Item
    Enter the item for which this item-related agreement applies. Note: This field name differs depending on the key that you selected in the Item related key field for the general supplier agreement.
    Price
    Enter the price of the item to be valid during the time period specified in the agreement.
    Currency
    Enter the currency in which the price is valid.
    Unit
    Enter the unit for which the price is valid.

Click OK to update and return to the previous panel. You have now set up a supplier agreement and connected an item-related agreement to it. This agreement is valid during a specific time period during which you will pay a certain price for the item when ordering from this supplier.

Set up supplier discounts for an item in a supplier agreement

Your supplier may offer you one or several discounts depending on your terms of business. You have the possibility to define the following types of discounts:

  • Order value discount
  • Quantity limit discount
  • Quantity dependent price

The following describes how to define quantity dependent discounts for a particular item included in a supplier agreement. Do as follows:

File Setup description
Work with supplier agreements
  1. On Header view, select the applicable general agreement and click Details.
  2. On Work with supplier agreements, Details, click Add.
  3. You access the detail panel. Complete the following fields:
    4. Item
    Select the item for which you want to specify a quantity dependent discount.
    Currency
    Enter the applicable currency code.
    Unit
    Enter the unit for which the discount is to be valid.
    Qty dep pric
    Set to YES to denote that you want to specify the quantity limits for the discount.

    Click Qty dep prices/discounts.

  4. You access Work with supplier agreements, Quantity limits. Click Add.
  5. You access the detail panel where you make your entries. Complete the following fields:
    6. Quantity limit
    Enter the quantity that is to be valid in relation to either the discount percentage value or the price.
    Discount %
    Enter a percentage that will be discounted on the basic purchase price specified in the Item file.

    Click OK. You are able to enter several quantity limits and discount percentages as well as new quantity dependent prices for the same item on this panel. Enter as many as you want on this panel, then exit the routine.

Delete expired supplier agreements

File Description
Reorganise expired supplier agreements On the Expired supplier agreements reorg panel, complete the following fields:

    Valid to date <
    Enter the valid to date of the supplier agreement(s) you want to delete.
    Print details
    Indicate if you want agreement details to be printed.

    Click OK.

Related topics