Using global agreements, purchasing professionals are able to negotiate prices on behalf of multiple organizations within an enterprise and then enable the resulting agreement to be shared by those organizations for procuring products and services.
Global Agreements allow buying organizations to negotiate pricing and define agreements in a centralized shared services environment. Execution against the Global Agreement can be controlled and handled in more than one operating unit. Instead of creating multiple agreements in multiple operating units, you can create a single global agreement that can be viewed and used for sourcing by multiple operating units.
In addition to the Supplier/Supplier Site with whom the agreement was negotiated by the negotiating organization, it may not be the same supplier/supplier site which would be processing the purchase orders from the multiple buying organizations, where the agreement is enabled.
Create a Global Agreement in an Operating Unit (a Contract Purchase Agreement with the Global box and Enable All Sites box checked) - (N) Purchase Orders > Purchase Orders.
Enable the Agreement in multiple Operating Units. (N) Purchase Orders > Purchase Orders > Tools > Enable Organizations.
Optionally define local attributes for each of the operating units. This includes buyer, supplier site, freight carrier, currency.
Local organizations can view and use the Global Agreement, however, they cannot make any changes to it. Only the local attributes can be changed by the buyers in the local organization.
Standard POs are created in the local organization using the local document sequence number for Purchase Orders that gets generated and stored by the system.
The following areas are impacted by the global agreements enhancements in Oracle Purchasing:
Requisitions, catalogs and Standard Purchase Orders refer to the global contract agreements even if the sites are valid for the supplier but do not necessarily match the site in the contract.
If you select a contract, the catalogs reference the Global Contract Purchase Agreement when the catalog site differs from the site of the local CPA.
Vendor based global ASL is used for referencing the Global Agreement.
During automatic document sourcing, the buyer Can select the other valid supplier sites from the LOV apart from the default site.
Once the Local or Global contract agreement goes through the amendment process and has a status of Requires Reapproval, you can refer to the contract once approved provided the agreement is not closed, cancelled or expired. (The profile option 'PO: Allow Referencing CPA Under Amendment' should be set to Yes).