Overview
Purchase Order Agreements are used to identify special Vendor pricing and/or discounts and must be specified in the header of a Purchase Order (Details section > Vendor tab > Purchase Agreement). The Agreement provides special pricing for individual items and/or purchase commodity codes. It is for a specific period of time defined by start and end dates. It can be designated to a single Vendor or a Vendor Class. The Agreement price and/or discount can be overridden on the PO lines depending on the Override Purchase Agreement setting on the Item Vendor Master. Pricing from a valid Purchase Order Agreement always overrides all other pricing except manual entry.
NOTE Each agreement requires a First Effective Date and Last Effective Date.
Navigation
Purchase Order Agreement
Header Section
Fields
Agreement Number: User-defined identifier, up to 20 alpha-numeric characters in length.
Associate to a Vendor Class: Option. When checked, the Vendor Class field is activated, and a valid Vendor Class must be entered. In this case, the Agreement is for a "class" of Vendors instead of a specific Vendor.
Vendor: The Rootstock Vendor for which this agreement applies. Not used if Vendor Class is activated.
Vendor Class: If ‘Associate to a Vendor Class’ is checked, a Vendor Class must be entered as an alternative to Vendor. If used, the agreement would apply to any Vendor associated with the given Vendor Class.
Description: User-defined description of this Agreement, up to 100 characters. For example, the Description might be 'Factory Supply Special Pricing October 2024'.
Active: When checked, this Purchase Order Agreement is active and can be selected on a Purchase Order Header for an applicable Vendor or Vendor Class, depending on whether 'Associate to a Vendor Class' is enabled.
First Effective Date: The starting date the Purchase Order Agreement goes into effect.
Last Effective Date: The ending date of the Agreement, after which the Purchase Order Agreement is no longer in effect.
NOTE The “effective dates” determine if the given Purchase Order Agreement can be used to establish pricing and/or discounts on PO Lines.
Responsible User: Purchasing user responsible for maintaining this Purchase Order Agreement.
NOTE The 'Total Amount Ordered' field on the Purchase Agreement displays the current total amount ordered using this agreement. It is automatically updated for Purchase Orders referencing this Agreement.
Additional Section
Comments Tab
The Comments tab can save relevant comments related to the Purchase Order Agreement.
Agreement Purchase Item Details Section (Related)
This section provides the ability to identify part numbers included in this Agreement, default pricing, and discounts. Some fields are available only after the line is saved. To access these fields, select the line to be edited (checkbox to the right of line number) and then select 'View' from the dropdown at the end of the line. This takes the user to the Item Detail page. Move to the 'Related' section, where you will use the standard icons to add new detail lines to the price/discount and/or date options. Clicking the pencil on the right side of each field (highlighted when active) will allow the user to enter the required information.
Fields
Inventory Division: The Inventory Division to which this Agreement Line applies.
Purchase Item: The Purchase Item (aka PO Item) to which this Agreement Line applies.
Unit Price: The price to be paid for the Purchase Item when using this Agreement unless overwritten on the PO line.
Discount Pct: The discount to be applied to the defined price (either via this Agreement or from the associated PO Item/Vendor record) unless overwritten on the PO line.
Max Purchase Qty: This field is used when the price for this item is valid for a limited quantity. When this value is set (i.e., is non-zero), the agreement detail becomes inactive once the Total Quantity Purchased reaches this amount. The total amount includes all Purchase Orders that reference this Agreement.
First Date: This field allows for the Agreement Item Detail to be effective for a smaller period of time than specified on the Agreement Header. For example, while the Agreement Header specifies special pricing beginning on the 1st day of the month, additional discounts can be identified beginning on the 10th of the month. The next field, Last Date, specifies when this special pricing ends.
Last Date: This field specifies the ending date of special pricing within the date parameters of this Agreement. This Last Date may be equal to or earlier than the Last Date specified on the Agreement Header. See the example above.
Qty Pricing Detail: When using ‘Price/Disc Details’ (see below) and the “detail” is for “Price”, this checkbox will be automatically checked. This allows pricing based on the quantity purchased.
Qty Discount Detail: When using ‘Price/Disc Details’ (see below) and the “detail” is for “Discount”, this checkbox will be automatically checked.
Price/Disc Details Button
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For quantity price breaks, click the plus sign under Price/Disc Details.
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For price/discount breaks by date, click the plus sign under Price by Date.
IMPORTANT Do not mix Prices and Discounts in the same “popup session”.
Price By Date Button: Use this for date-effective “fixed” prices.
NOTE This date-effectivity is driven by the “Dock Date” entered on a Purchase Order Line.
Price By Date – Quantity Detail Button
Agreement Commodity Code Details Section
This section lets users establish pricing and/or discounts based on a Purchase Commodity Code. All items within the specified Purchase Commodity Code entered on a Purchase Order referencing this Agreement will use the defined pricing and/or discounts.
Fields
Inventory Division: The Inventory Division to which this Agreement Line applies.
PO Commodity Code: The PO Commodity Code to which this Agreement Line applies.
Unit Price: The price to be paid for a PO Item associated with the defined Commodity Code when using this Agreement.
Discount Pct: The discount to be applied to the defined price (either via this agreement or from the associated Item/Vendor record).
Max Allowed Order Qty: The maximum Quantity Required that can be entered on a Purchase Order Line for an Item associated with the defined PO Commodity Code on a Purchase Order using this Agreement.
Qty Pricing Detail: When using ‘Price/Disc Details’ (see below) and the “detail” is for “Price”, this checkbox will be automatically checked.
Qty Discount Detail: When using ‘Price/Disc Details’ (see below) and the “detail” is for “Discount”, this checkbox will be automatically checked.
Price/Disc Details Button
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For quantity price breaks, select ‘Price’ from the ‘Price or Discount’ dropdown.
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For quantity discount breaks, select ‘Discount’ from the ‘Price or Discount’ dropdown.
IMPORTANT: Do not mix Prices and Discounts in the same “popup session”.
SEE ALSO
Purchasing Overview
Inventory Commodity Code
Vendor Master
