Blanket and contract purchase agreements may require additional information be entered. Discussed in this section are:
Additional terms information
Line pricing information
Assignment of organizations to global agreements
Renegotiating blanket purchase agreements
To enter additional agreement terms on the header:
From the Purchase Orders window, select Terms.
Enter the effective dates, release amounts, and price update information in the Agreement Controls region. See: Entering Purchase Order Details Information.
To enter additional blanket agreement line information:
In the Agreement tabbed region of the Purchase Orders window (when you've selected a Type of Blanket Purchase Agreement), enter the Minimum Release Amount against this purchase agreement line.
Enter the Quantity Agreed. This is printed on your purchase orders. Purchasing does not automatically compute the quantity agreed from the amount agreed. Use the Amount Agreed field to provide agreed amounts.
Enter the Amount Agreed. Purchasing does not automatically compute the amount agreed from the quantity agreed. These attributes are optional at both document and line level.
When a release or purchase order is created, the system verifies that the total released amount is within the BPA header-level Agreed Amount limit. If it is not, then the system displays an error message, and asks you whether you wish to correct the difference or continue. Additionally, at the line level, the system verifies if the released line amount is within the BPA line level Agreed Amount limit. If it is not, the system displays an error message, and asks whether you wish to correct the difference or continue. Thus, if the release (purchase order) amount is not within the Agreed Amount limit, you cannot proceed until the amount is corrected at the document or line level.
Optionally enter an Expiration Date to prevent ordering of the item after that date.
If the item on the agreement has expired but already exists on an open release, you can still use the release. However, the expired line item will not be used for sourcing, and any future releases you create will not allow using the expired item.
Select Cumulative Pricing if you want Purchasing to choose the price break by adding the current release shipment quantity to the total quantity already released against the purchase agreement line. Otherwise, Purchasing chooses the price break by using the individual release shipment quantity.
Note: Cumulative Pricing can not be used with global agreements.
Organizations can take advantage of negotiations completed with suppliers by other business units. To do this the original blanket purchase agreement or contract purchase agreement is first created as a global agreement (Global checkbox). Then the agreement is enabled for use in the authorized business units (operating units).
To enable organizations for a global agreement:
From the Purchase Orders window, open a global agreement and select Enable Organizations from the Tools menu.
Select the Requesting Org operating unit. This organization can create requisitions that reference the global agreement.
Select the Purchasing Org operating unit. This organization creates purchase orders for the Requesting Org selected in the previous step.
Note: If encumbrance is enabled, the Requesting Org and the Purchasing Org must be the same.
Select the Purchasing Site. This is the supplier site in the purchasing organization which will fulfill the order.
To disable the global agreement in an organization check the Disabled box.
Click the OK button to save your organization assignments.
For more information on using global agreements see: Center-Led Procurement
To renegotiate a blanket purchase agreement:
If you have Oracle Sourcing enabled, query the blanket purchase agreement that you wish to renegotiate.
From the Tools menu, select Create Buyer's Auction or Create Sourcing RFQ.
To encumber a blanket purchase agreement:
You can encumber a blanket purchase agreement from the Terms and Conditions window. See: Entering Purchase Order Details Information.