Customer Agreements
Implement agreements with your customers regarding unique price lists, discounts, payment terms, and invoicing and revenue policies using Oracle Order Entry/Shipping's customer agreements. You can define new agreements, place orders against agreements, and set effective dates on agreements.
Agreements
Create a permanent record of your customer agreements using Oracle Order Entry/Shipping. Define generic agreements available to all customers. Define customer family agreements which limit an agreement to a customer and their related customers. You can define as many generic and customer family agreements as necessary. Use standard value rule sets to default agreement controls to customer orders.
Agreement Pricing
Oracle Order Entry/Shipping lets you control your pricing policies for any agreement. You can define a separate price list for an agreement, creating unique prices for specific items or limiting the items controlled by an agreement. Use standard value rule sets to default the price list to customer orders.
Agreement Discounts
Define discounts that are available only when customers order against specific agreements or groups of agreements.
Accounting and Invoicing Rules
For each agreement you can select different invoice and accounting rules for orders using the agreement. Assign agreements to commitments in Oracle Receivables to control the rules for an order line when you assign a commitment to the line.
Setup
Define Agreement Types
Categorize your agreements by defining unique agreement types in Oracle Order Entry/Shipping. For example, if you have specific contract types, you may want to define an agreement type for each different contract type. You can report on agreements by agreement type and limit agreement availability on orders by agreement type. Agreement types are optional, so before setting up your agreements, carefully consider if you want to categorize your agreements.
Create agreement types using the Order Entry QuickCodes window, with the QuickCode Type field set to Agreement Types. You can assign agreement types to specific agreements when you create the agreement in the Agreements window. See: Defining Order Entry/Shipping QuickCodes.
Determine Items under Agreement Control
Determine whether your agreement is restricted to particular items. If it is and these items are not already on a price list together, you must create a price list for these items. When entering an order you can only order items on the order's price list. Use standard value rule sets to default the price list on the agreement to the order to restrict the benefits of the agreement to particular items. If your agreement does not include item restrictions, you can use any price list on the agreement. See: Defining Price Lists.
Create Agreements
Use the Agreements window to record your customer agreements. Optionally enter a customer name on the agreement to restrict availability of the agreement to a customer and its related customers when entering an order. When creating standard value rule sets, agreements can be a source of price list, payment term, salesperson, and invoicing and accounting rule defaults for your orders. See: Defining Agreements.
Report on Agreements
Use the Agreement Activity Report to review all your existing agreements, or all agreements for a customer, agreement type, price list, or sales representative. See: Agreement Activity Report.
Create Discounts by Agreement
Use the agreement or agreement type as your pricing column value when you define your discounts. This limits availability of the discount to orders using a specific agreement or any agreements belonging to a particular agreement type. Create percentage, amount, or volume discounts. See: Defining Discounts.
Enforce Default Values from Agreements on Orders
(Standard Value Rule Sets)
Create standard value rule sets to provide default information from an agreement to an order during order entry. Using the Override Allowed and Override User-Specified Value check boxes in the Standard Value Rule Set window allows you to enforce defaults from the agreement on the order. Toggle Override Allowed off to prevent users from overriding values defaulting from agreements; toggle Override User-Specified Value on so that adding an agreement to an existing order causes values from the agreement to override any existing values. See: Standard Value Rule Sets and Defining Standard Value Rule Sets.
Require Agreements by Order Type
You can require agreements on order types when you have made special arrangements with customers regarding payment terms, pricing, or discounting for specific types of orders.
As you create order types indicate whether you require an agreement when entering any order for this order type. You also specify your standard value rule set on the order type which defaults information from the agreement to the order. Then, during order entry, all orders for this order type receive information from the agreement assigned to the order.
Assign an agreement type to an order type to limit the agreements you can choose from when entering an order which uses the order type. For example, if you have negotiated agreements, you can define an agreement type of 'Negotiated' and assign it to several agreements. Then assign the agreement type 'Negotiated' to an order type. In this example, users entering orders with this order type can only access agreements with the type of 'Negotiated'. If you do not need to restrict agreement access during order entry, leave the Agreement Type field blank in the Order Types window, and Oracle Order Entry/Shipping lets you choose from any agreement type when entering an order for that order type. See: Defining Order Types.
Assign Agreements to Commitments
In Oracle Receivables you can assign an agreement to a commitment. When you assign the commitment to an order line, invoicing and accounting rules for the line can come from the agreement depending on how you set up your standard value rule sets. See: Entering Commitments and Using Rules.
Entering Orders Against Agreements
Entering orders against your agreements is straightforward. Use the list of values on the Agreement field in the Pricing header alternative region of the Sales Orders window to choose from generic and customer family agreements.
Once you choose an agreement, if the standard value rule set defaults information from the agreement, Oracle Order Entry/Shipping automatically copies the agreement defaults onto the order. See: Overview of Sales Orders.
Deactivating an Agreement
To indicate an agreement is no longer valid, enter an effective end date on the agreement in the Agreements window. This does not affect orders currently under the agreement.
See Also
Entering Customers
Defining Agreements
