we have a purchase aggrement. I can use “Create aggrement release” screen to create a released PO. But if someone create a Purchase requsition, how can purchasing department can link and use that aggrement ?
Question
Purchase Requisition and Purchase Aggrements
+2Hi Emre. With a Blanket Purchase Order Supplier Agreement Type, the only way to create PO’s is from Create Agreement Release.
Blanket Purchase Order
A blanket purchase order is a long-term commitment to a supplier for material against which short-term releases will be generated to satisfy requirements. The purchases of the specified purchase parts are already authorized. This fact makes it a very fast way of ordering the parts, since it reduces the steps necessary before the purchase order can reach the supplier.
The blanket purchase order is the type of supplier agreement which is used for supplier agreement releases. This concept gives the average user the possibility to buy items that can be very expensive; however, at the same time, it sets limits to the opportunity to buy indiscriminately. An example is the need to immediately purchase a very expensive spare part for a machine in order to minimize the time the machine is inoperable.
On a blanket purchase order it is only possible to enter purchase parts, not supplier assortments or part assortments. The reason for this lies in the fact that a blanket purchase order defines precisely the purchase parts to be included and the buying conditions of these. A supplier assortment is too broad a definition to be applied in a blanket purchase order.
The average user can, when the blanket purchase order is created, easily create the supplier agreement releases from the Create Agreement Release dialog. This is the only way to make the supplier agreement releases. The supplier agreement release will automatically create a released purchase order with one order line. No confirmation will be needed for this kind of purchase order since your company already has negotiated the details in the blanket purchase order with the supplier.
+10Hi
If you have a valid supplier agreement (agreement type is Purchase agreement), then if you create purchase requisition line that connect to the supplier, then agreement price will fetch. Active purchase agreement’s price will get the highest priority with the procurement pricing logic. When you convert your purchase requisition to purchase order, then PO line level you can see the Aggreement ID.
regards,
Piyal
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