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Supply chain | Supply Chain Management, Commerce
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procurement category

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Posted on by 67

Hi All thank you so much all the kind support.

I have question while creating purchase agreement there is four option.

1.one is by quantity-it wont allow lesser or more than quantity 

2.one is by value-when i checked it it allow lesser than value.

3.product category value commitment-??

4.value commitment-???

the role of Max and min how values effects between them

(1)Why product category must be defined if can explain with example.

(2)can you explain difference in four.can we change Purchase agreement values on time of PO?yes i have checked on two option it wont change but i am not sure.

I have the same question (0)
  • Community Member Profile Picture
    on at

    The category is a required field, and only products that are in a category can be entered when selecting individual products subject to the agreement. This is done to insure that all the security and approvals can apply to a requisition. 

    The difference between the 4 options:

    1. quantity of a single item - xx items at a particular price. Note that when using this, no matter what market prices may be, the agreement will still generate the same price
    2. Amount of a single item - total dollars spent on an item. Note that when using this, there is no rule about the specific price paid for the item and it can change throughout the agreement period - this is a percentage discount
    3. Amount of a category - this way you can have several items that are included in the agreement, and they don't have to have any specific relationship. You can create your own category and assign a variety of items to that category - a percentage discount
    4. Total amount spent - these include all items that are in a category. It is also a percentage discount

    You cannot change the commitment type on a purchase/sales order. You can though, with proper security, change any of the discounts or prices that are applied. 

    Also, note that if you start an order and do not select an agreement, you cannot go back and apply it. 

    Let me know if you have any questions.  

  • qianwang Profile Picture
    7,168 on at

    Hi p_priya,

    The max and min just specify a range of values that can be purchased on each order that uses the selected agreement.

    docs.microsoft.com/.../purchase-agreements

    www.axug.com/.../DownloadDocumentFile.ashx

    Product category is used to classify products for the reporting purpose and analysis. Categories can be defined as per Organizational needs. In the purchase agreement, you can set prices for different procurement categories, for a catalog item or a non-catalog item.

    You cannot change the purchase agreement values in PO.

    Regards,

    QianQW

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