PeopleSoft Order Management 9.1 PeopleBook

Creating Buying Agreements

This chapter provides an overview of buying agreements and discusses how to:

Set up buying agreements.
Maintain additional buying agreement information.
Maintain additional buying agreement line information.
Copy quotes or existing buying agreements.
Create sales orders from buying agreements.
Use buying agreement rebates and penalties.
Inquire about buying agreements.

Understanding Buying Agreements

Through the use of buying agreements, you can structure flexible and easy-to-use buying arrangements for customers or groups of customers. A buying agreement is a schedule between you and the customer defining terms and conditions. Buying agreements enable you to:

Define a beginning and end date and a maximum amount.
Specify the minimum dollar value per order placed.
Define certain shipping defaults for all sales orders.
Define all products and product groups that are to be included.
Define special pricing terms for a customer or customer group.
Maximum and minimum line item ordering quantities for each line item.
Generate sales orders automatically when the customers know in advance when products are needed.
Create sales orders in situations where shipment scheduling is unknown.
Create rebates and penalties.

Common Elements Used in This Chapter

Product Source

Appears by default from the General Information - Sold To Options page.

System: Use the product IDs that are in the system. If the buying agreement applies to a customer group, this option is the default and cannot be changed.

Customer: Use the customer's part numbers.

Setting Up Buying Agreements

To define buying agreements, use the Buying Agreement component.

This section discusses how to enter buying agreement header information.

Pages Used to Set Up Buying Agreements

Page Name	Definition Name	Navigation	Usage
Buying Agreement Type	CONTRACT_TYPE	Set Up Financials/Supply Chain, Product Related, Order Management Foundation, Buying Agreement Type	Define codes that can categorize buying agreements. Buying agreement types categorize buying agreements for reporting purposes or mark buying agreements with similar renewal characteristics, such as annual purchase agreements.
Buying Agreement Form	SCON_FORM	Order Management, Buying Agreements, Create Buying Agreement	Enter buying agreement header information. Define to whom the buying agreement applies (this can be a customer or customer group) and the effective dates of the buying agreement. Enter buying agreement line information including associated product groups or product IDs and establish pricing for those products.
Refresh Buying Agreement Prompt Table	RUN_OMS2001	Order Management, Buying Agreements, Create Buying Agreement, Refresh Prompt Table	Establish parameters to initiate the process to update the active buying agreement table if you make changes by using electronic data interchange (EDI) or a conversion program to buying agreements, sold to customers, customer groups, products, or product groups. The system automatically updates this table whenever changes are made online.
Close Agreement	RUN_OM_CLOSE_SCON	Order Management, Buying Agreements, Convert and Close Agreements, Close Buying Agreement	Establish process parameters to close buying agreements that reach their expiration dates, the buying agreement ending date plus grace days. Once closed, the buying agreement cannot be referenced on sales orders or quotations.

Entering Buying Agreement Header Information

Access the Buying Agreement Form page (Order Management, Buying Agreements, Create/Update Buying Agreement).

Note. If you enter orders against a buying agreement or if orders are automatically created from releases, the only changes that you can make on the buying agreement line are in the Maximum Quantity (or Amount) and % Over fields.

Copy	In Add mode, click to copy data from an existing buying agreement or from a quote. Note. When you copy a Buying Agreement, do not copy the PO Number and PO Line.
Status	Values are: Active: Can be referenced on orders and copied to another buying agreement. Canceled: Is not valid and cannot be referenced on orders. Canceled buying agreements can be copied. Hold: Is on hold for an indefinite period of time and cannot be referenced on orders. Buying agreements that are on hold can be copied. Closed: All terms are fulfilled or the buying agreement is expired. Closed buying agreements cannot be referenced on orders but can be copied.
Buying Agreement Type	Established on the Buying Agreement Type page.
Start Date and End Date	Enter for the buying agreement. The system date is used as a default for the start date. The term of the buying agreement can span multiple fiscal years.
Grace Days	Enter the number of days that needs to be added to the end date to obtain the grace end date (in Display mode). If you do not want to provide an extension, enter 0.
Maximum Amount and % Over Amount (percentage over amount)	To permit buying agreement orders to exceed the maximum amount by that tolerance percentage. These fields are for information only.
Minimum Order Amount	Enter the smallest dollar value for which the buying agreement pricing applies. This field is for information only.
Price Can Be Changed on Order	To enable the price to be changed on the quote or order. Otherwise, you cannot adjust the price manually and repricing the sales order does not change the price for lines that are associated with this buying agreement.
Adjustment Allowed	Set to Yes if you want to allow this buying agreement to be eligible for adjustments. Set to No if you do not want this buying agreement to be eligible for additional pricing adjustments. Note. Allowing buying agreements to be adjusted can also be controlled at the customer, group, and Order Management business unit level.
Customer or Customer Group	Select either, and then select a value from the available options. Important! You can apply a buying agreement to a customer group only if you designate the group as a sales buying agreement group type on the Customer Group Table page.
Currency Code	Identifies the customer's currency for the buying agreement.
Rate Type	Identifies the market rate type that is associated with the currency code that is on the buying agreement.
Default Contract	Indicates that this is the primary buying agreement for the customer or customer group. This buying agreement is selected by default on any sales orders that are entered for the sold to customer or a sold to customer in the specified customer group.
PO Number	Enter the customer's PO number for the buying agreement. This PO number can be used to default to new buying agreement lines or to update existing buying agreement lines when using the Update PO button. The PO number will also default to any order releases that are created and to the sales order when the buying agreement is entered on the sales order header or line. This field is required when an order release is created if indicated on the default bill-to customer for the sold-to customer.
PO Line	Enter the customer's PO line number for the buying agreement. This PO line number can be used to default to new buying agreement lines or to update existing buying agreement lines when using the Update PO button. The PO line number will also default to any order releases that are created and to sales order lines when the buying agreement is entered on the sales order line. This field is required when an order release is created if indicated on the default bill-to customer for the sold-to customer.
PO Number Required	The PO Number Required checkbox is displayed when the default bill-to customer for the sold-to customer indicates that the PO Number is required.
Update PO	Click to copy the PO Number and PO Line from the Buying Agreement header and populate all buying agreement lines with the same information. The user will be prompted to determine if the system should overwrite existing values on the line.
Customer Buying Agreement	Click to copy data from quotes or buying agreements for a designated sold to customer or customer group.

Line

Applies To	Select whether the buying agreement line applies to a product or a product group.
Product Source	Select the product source; the available options are Customer and System.
Product ID Entered	Enter a product ID. The products that are available are determined by the catalogs, if any, that are associated with the sold to customer on the General Information - Product Catalog page. Note. If the buying agreement is for a customer group, all the products that are in the system are available.
Customer Item Number	The customer's part number, or product alias, appears in the Customer Item Number field, if you define an alias on the General Information - Product Aliases page and the product source is Customer. The system product ID appears in the Product ID field.
Customer PO	Enter the customer's PO number for the buying agreement line. The Customer PO number will default to any order releases that are created for the buying agreement line and to sales order lines when the buying agreement line is entered on an order line.
PO Line	Enter the customer's PO line number for the buying agreement line. The PO line number will default to any order releases that are created for the buying agreement line and to sales order lines when the buying agreement line is entered on an order line.

Note. You can configure the maximum number of lines displayed on buying agreements on the Installation Options - Order Management page.

Quantity/Amount

The Quantity/Amount fields vary depending on the selection of Product or Product Group in the Applies To group box and the selection of Quantity and Amount.

Maximum Quantity (or Amount)

Defines the maximum ordering limit for the product during the buying agreement period. This field places a lower limit on the quantity that you can enter on an order line that references the buying agreement line. Orders that violate these limits can be placed on hold, depending on the parameters for business unit holds that you establish on the Holds Processing page.

You can define a maximum for a buying agreement line by quantity or amount for products, but only by amount for product groups.

Note. You can generate releases only for buying agreement lines that specify a quantity. You cannot generate sales orders from buying agreement lines that specify an amount.

UOM (unit of measure)

Enter separate buying agreement line products in different UOMs.

% Over (percentage over)

If the business unit parameters that are established on the Holds Processing page define a hold on sales orders that surpass a maximum quantity or amount for a buying agreement, enter a tolerance to override that hold.

Terms

Rebate ID and Penalty ID	Select either a rebate ID, penalty ID, or both if you are implementing rebates and penalties to administer rebates and penalties when the customer meets or does not meet the buying agreement terms.
Payment Terms ID and Payment Method	To select different options for the line than those from the Buying Agreement Header - Terms page.

Pricing

Exclusive Pricing ID	To link pricing with the buying agreement line if the buying agreement applies to a single customer and the buying agreement line identifies a single product. Exclusive pricing is established on the Arbitration Plan page by tying a price rule to an arbitration plan. The exclusive pricing ID is used to derive the net unit price for the buying agreement line.
Ship To Customer	The field is linked to the sold to customer that is selected on the buying agreement header. Choose a different ship to customer for the buying agreement line. This field is unavailable for entry if the buying agreement applies to a customer group.
Ship From INV BU (ship from inventory business unit)	The highest-priority Inventory business unit, the one with the highest priority assigned number in the ship to customer's distribution network, is used as the default in the field. This field is unavailable for entry if you define the buying agreement for a customer group or if the line references a product group.
Net Unit Price	If you enter a value in this field, you cannot enter an exclusive pricing ID. If the buying agreement applies to a product group, enter a single net unit price, which the system uses for all products in the group.
List Price	From the Inventory business unit if the product can be stocked.
Extended Net Amount and Extended List Price	The net unit price or list price multiplied by the maximum quantity.
Standard Discount	To apply a standard discount to the buying agreement. The discount is applied to the net unit price on the sales order if this buying agreement line is assigned. It is not applied to the net unit price of the buying agreement.

Product

Product

Enter a product ID. The products that are available are determined by the catalogs, if any, that are associated with the sold to customer on the General Information - Product Catalog page.

The customer's part number, or product alias, appears in the Customer Item Number field, if you define an alias on the General Information - Product Aliases page and the Product Source is Customer. The system product ID appears in the Product ID field.

Note. If the buying agreement is for a customer group, all the products that are in the system are available.

Product Group

Product Groups

Available options differ, depending on whether catalogs are associated with the sold to customer.

If the customer does not use catalogs, the product groups that are available must be defined as a Buy Agrmnt (buying agreement) product group type on the Product Groups page.
If you attach catalogs to the customer, the available product groups must be included in the customer's catalog. The product groups that are available if the buying agreement applies to a customer group must be defined as a buying agreement product group type on the Product Group Table page

Note. If you define a buying agreement for a customer group and a product group, it is possible that customers with attached catalogs might be included in a buying agreement for products that they are not authorized to buy. If this occurs, the system notifies you at order entry.

Maintaining Additional Buying Agreement Information

This section provides information about entering or modifying additional information for the options available under the Header menu section of the Buying Agreements form.

This section discusses how to:

Enter additional information about the buying agreement.
Associate attachments with the buying agreement header information.
Associate notes with the buying agreement header information.

Pages Used to Maintain Additional Buying Agreement Header Information

Page Name	Definition Name	Navigation	Usage
Header Additional Information	SCON_HDR2	Select Additional Info in the Header menu field on the Buying Agreement Form page.	Enter information about buying agreements, negotiators, contacts, and record reason codes for changes to the buying agreement.
Header Attachments	SCON_HDR_ATT	Select Attachments in the Header menu field on the Buying Agreement Form page.	Attach various media to a buying agreement at the header level.
Buying Agreement Usage	SCON_HDR_USAGE	Select Buying Agreement Usage in the Header menu field on the Buying Agreement Form page.	Review sales order buying agreement lines by line, order, or product.
Header Competitors	SCON_HDR_CMPT	Select Competitor Information in the Header menu field on the Buying Agreement Form page.	Enter information about the competition for a buying agreement.
Customer Conversations	FS_CONVERSATIONS	Select Customer Conversation in the Header menu field on the Buying Agreement Form page.	View or add conversations about or with a customer. See Managing Conversations.
Line Summary	SCON_HDR_ORDER	Select Line Summary in the Header menu field on the Buying Agreement Form page.	Review buying agreement line information.
Header Notes	SCON_HDR_NOTE	Select Notes in the Header menu field on the Buying Agreement Form page.	Add notes to the header buying agreement.
Header Terms	SCON_HDR_TRMS	Select Terms in the Header menu field on the Buying Agreement Form page.	Define payment and shipping options.

Entering Additional Information About the Buying Agreement

Access the Header Additional Information page (select Additional Information in the Header menu field on the Buying Agreement Form page).

Contact Sequence Number	The primary contact that is established for the sold to customer on the Contact Customer page in the Maintain Contact menu.
Product Source	Select type of product ID for the buying agreement to identify the ordering product preference for the sold to customer. Options are: Customer, System, UPC, or Universal.
Team Member	Enter any number of people who are responsible for negotiating the buying agreement. Associate team members with a buying agreement ID in order to populate the Buying Agreement Renewal letter and the Buying Agreement Status report. You can also define a workflow to route buying agreement renewal notices to those individuals.
Reason Code	Enter a reason code if you make any changes to the buying agreement or if you change the status of the buying agreement to Hold. The description of the reason code appears. Reason codes with a reason type of sales buying agreement must already be defined in the Establish Order Processing menu.

Associating Attachments with Buying Agreement Header Information

Access Header Attachments page (select Attachments in the Header menu field on the Buying Agreement Form page).

Add	Click this button to browse for and add an attachment.
View	After you upload an attachment, click this button to view it.
Attached File	After you upload an attachment, its name appears here.
Attachment Type	Enter the file type and add a description of the multimedia item that you are attaching. Note. Attachment type is not a file extension, but a categorization of the attachment defined through system configuration on the Attachment Types page.

Associating Notes with Buying Agreement Header Information

Access the Header Notes page (select Notes in the Header menu field on the Buying Agreement Form page).

Sequence	Determines the order in which notes are printed on the selected documents.
Classification	Select a value: Standard: Assigns a standard note. For this value, select a standard note code. Standard notes are created on the Common Definitions Standard Notes page. Custom: Creates a custom note. For this value, select a note type, and then enter the custom note in the text field.
Use Predefined Standard Note	Select this option to use a predefined note for your customer note.
Note Code	Enter the note code for this note. If you are using predefined standard notes, select the standard note to assign to this page or type in the note code. The note type, note text, key words, and print on documents are displayed.
Note Type	For custom notes, select the note type.
Documents To Print The Note On	For custom notes, select Buying Agreement Renewal or Buying Agreement Status.

Defining payment and shipping options

Access the Header Terms page (select Terms in the Header menu field on the Buying Agreement Form page).

Use Preferred Freight Carrier

If a carrier is entered for the buying agreement terms, this field indicates whether the carrier has been designated for freight purposes.

See Basic Setup Steps for Freight Charges.

Deliveries Restricted to Order

Indicates whether more than one sales order can be assigned to the same delivery.

See Understanding the Delivery Management Setup Steps.

Maintaining Additional Buying Agreement Line Information

This section lists the pages used to enter or modify additional information for the options available under the Line menu section of the Buying Agreements form.

Pages Used to Maintain Additional Buying Agreement Line Information

Page Name	Definition Name	Navigation	Usage
Line Attachments	SCON_LINE_ATT	Select Attachments in the Line menu field on the Buying Agreement Form page.	Attach various media to a buying agreement at the line level. See Associating Attachments with Buying Agreement Header Information.
Line Competitors	SCON_LINE_CMPT	Select Competitor Information in the Line menu field on the Buying Agreement Form page.	View and add information about competitors.
Line Usage	SCON_LINE_ATT	Select Line Usage in the Line menu field on the Buying Agreement Form page.	Review buying agreement line usage.
Line Notes	SCON_LINE_NOTE	Select Notes in the Line menu field on the Buying Agreement Form page.	Associate standard or custom notes with a buying agreement at the line level. See Associating Notes with Buying Agreement Header Information.

Copying Quotes or Existing Buying Agreements

You can copy quotes or existing buying agreements to new buying agreement.

In Add mode, click the Copy link on the Buying Agreement Form page to copy from an existing buying agreement or from a quote.

Select Quotes or Buying Agreements.
Select the quote on the Quotes by Customer page or buying agreement on the Buying Agreements by Customer page from which you want to copy information.

Select whether to copy the header, all or some on the lines for the quote or buying agreement.
Use the Quote Lines page or Buying Agreement Lines page to copy the individual lines to the buying agreement.

Pages Used to Copy Quotes or Existing Buying Agreements

Page Name	Definition Name	Navigation	Usage
Buying Agreement Form	SCON_HDR1	Order Management, Buying Agreements, Create Buying Agreement, Buying Agreement Form	Use the Buying Agreement Form page to begin entering buying agreement header information.
Quotes by Customer	SCON_QUOTE_SEC	Click the Customer Buying Agreements link on the Buying Agreement Form page, and select Quotes on the Selection Criteria page.	Copy quotes to a new buying agreement.
Quote Lines	SCON_QUOTE_LINE	Select a quote to copy from the Quotes by Customer page and select Selective in the dialog box that appears. Select a quote and click the Show Detail Entry link on the Quotes by Customer page.	Copy quote lines from an existing buying agreement to a new one or view the quote lines.
Buying Agreements by Customer	SCON_CUST_SEC	Click the Customer Buying Agreements link on the Buying Agreement Form page, and select Buying Agreements on the Selection Criteria page.	Copy an existing buying agreement to a new buying agreement.
Buying Agreements Lines	SCON_CUST_LINE	Select a buying agreement, and click the Show Detail Entry link on the Buying Agreements by Customer page.	Copy lines from an existing buying agreement to a new one or view line information. Select a buying agreement to copy from the Buying Agreements by Customer page, and select Selective in the dialog box that appears.

Creating Sales Orders from Buying Agreements

This section lists common elements and discusses how to:

Create buying agreement line releases.
Process sales orders that are created from buying agreements.
Generate ad hoc sales orders for buying agreements.

Common Elements Used in This Section

Order Creation	Values are: Single Ord for Each Contract (single order for each contract) or Single Ord for Multi Buying Contracts (single order for multiple buying contracts).
Release Quantity	This quantity must be equal to or greater than the minimum order quantity that you define on the Buying Agreement - Line page and must be in the valid increment for the product. Establish valid product-ordering increments by UOM on the Product Attributes by UOM page.
Ship To Customer	Displays information from the Buying Agreement - Line page. Change the ID if you want the release to go to a different ship to customer.

Pages Used to Create Sales Orders from Buying Agreements

Page Name	Definition Name	Navigation	Usage
Line Release	SCON_LINE_RELEASE	Click the Release Information link from the buying agreement header or line level.	Set up buying agreement releases when you know the customer's scheduling requirements.
Create Sales Orders	RUN_OM_SCON	Order Management, Buying Agreements, Convert and Close Agreements, Convert Agreements to Orders, Create Sales Orders	Set up the parameters for the Create Sales Orders process (OMCNTRCT). The Create Sales Orders process automatically generates sales orders from the buying agreement releases that are defined on the Line Release page.
Generate Order By Customer	SCON_CREATE_SO	Order Management, Buying Agreements, Convert and Close Agreements, Convert Agreement by Customer, Generate Order by Customer	Create sales orders online for sold to customers.

Creating Buying Agreement Line Releases

Access the Line Release page (click the Release Information link from the buying agreement header or line level).

Start Date	Enter the date and optionally the start time from which all releases are to be built.
Copy Line Release	Click the link to populate the bottom of the page with the number of releases that are entered.
Order To Date Quantity	Displays the total quantity that is already entered on sales orders that reference the buying agreement line. The quantity is calculated by taking all the order lines that reference the buying agreement line, unless they are canceled, and subtracting the returned material authorization quantities, if they are returned in the same unit of measure.
PO Number	Enter the customer's PO number for the line release or let it default from the buying agreement line. This PO number can be used to default to new release schedules or to update existing release schedules when using the Update PO button. The PO number will default to any order releases that are created for the buying agreement. This field is required if indicated on the default bill-to customer for the sold-to customer.
PO line	Enter the customer's PO line number for the line release or let it default from the buying agreement line. This PO line number can be used to default to new release schedules or to update existing release schedules when using the Update PO button. The PO line number will default to any order releases that are created for the buying agreement. This field is required if indicated on the default bill-to customer for the sold-to customer.
PO Number Required	The PO Number Required checkbox is displayed when the default bill-to customer for the sold-to customer indicates that the PO Number is required.
Update PO	Click to copy the PO Number and PO Line from the Line Release and populate all release schedules with the same information. The user will be prompted to determine if the system should overwrite existing values on the line.
Interval	Values are: Each Month, Every Day, Every Hour, Every Week, and Quarterly. In the For field, enter the number of releases to create for the interval that you select. Note. The Release Quantity value multiplied by the value in the For field cannot exceed the value in the Order To Date Quantity field for the line.
Change Planning Flags	Use to Select All or Deselect All buying agreement lines for PeopleSoft Supply Planning.
Schedule, Requested Arrival Date, Requested Arrival Time, and Release Quantity	The system automatically populates the fields based on the interval and the number of releases that are selected.
Include in Planning	Select to enable PeopleSoft Supply Planning to consider release quantities in the planning algorithms.
Order	Appears along with the Line field when a sales order is automatically created for the buying agreement line release.

Note. You can define buying agreement releases only for single-customer buying agreements in which the buying agreement lines specify a quantity.

Processing Sales Orders Created from Buying Agreements

Access the Create Sales Order process page (Order Management, Buying Agreements, Convert and Close Agreements, Convert Agreements to Orders, Create Sales Orders).

Sold To Customer	If this customer has open buying agreements with established buying agreement releases, the orders are created from the releases. If you leave this field blank, the process creates orders for all sold to customers with open buying agreement releases.
Request Arrival Thru Date/Time (request arrival through Date/Time)	The system creates order lines for buying agreement releases, starting with the current date and ending with the date and time that you enter here. The time must be entered in the field to the right of the calendar button manually.

When an order is created and a Buying Agreement is entered on the header that has a PO Number; that PO Number will be displayed as the default. If a PO number previously existed it will be overwritten. The PO Number is then populated to the line level for new lines. It is not updated on existing lines.

Note. After you run the Create Sales Orders process, run the Order Completion process (OM_BACKGRND) to access the orders in the standard order entry pages. After running the Order Completion process against the orders, run the Hold Checking (OM_HOLD), Credit Checking (OM_CREDIT), and Populate Demand (OM_DEMAND) processes to move the orders into inventory fulfillment.

Generating Ad Hoc Sales Orders for Buying Agreements

Access the Generate Order by Customer page (Order Management, Buying Agreements, Convert and Close Agreements, Convert Agreement by Customer, Generate Order by Customer).

Order Status	The selection becomes the default on the sales order that is created from the buying agreement.
Order Group	Appears by default along with Source from user preferences, or select values that appear by default on the sales orders that are created from the buying agreement.
PO Number	Enter a value in this field and a PO Line if the customer requires this information on the sales order. The PO number and PO line will default from the buying agreement header if they have been entered.

When you save your work and the system creates a sales order, order information appears in the group box.

Note. After you create these orders, run the Order Completion process to access the orders on the standard order entry pages. After running the Order Completion process against the orders, run the Hold Checking, Credit Checking, and Populate Demand processes to move the orders into inventory fulfillment.

Using Buying Agreement Rebates and Penalties

To define rebate and penalty definitions, use the Rebate Penalty Definition and Rebate Penalty Table components.

To enhance control of the buying agreement relationships that you have with customers, you can implement rebate and penalty calculations for sales buying agreements.

This section discusses how to:

Set up formulas to calculate rebates and penalties.
Set up the points to calculate rebates and penalties.
Set up the parameters for applying the rebate or penalty.
Establish the parameters for the rebate and penalty calculation process.
View and alter the rebate or penalty information.
Populate the Billing interface tables.

Pages Used to Set Up Buying Agreement Rebates and Penalties

Page Name	Definition Name	Navigation	Usage
Accounting and Billing	BUS_UNIT_TBL_OM5	Click the Accounting and Billing link on the Order Management Definition - Order Management Setup page.	Specify a rebate product, penalty product ID, and rebate/penalty bill by ID.
Rebate Penalty - Definition	RBT_PNLTY_DEFN	Set Up Financials/Supply Chain, Product Related, Order Management Foundation, Rebate and Penalty Definition, Definition	Set up the comparison basis and parameters for the rebate or penalty that the system uses to calculate rebates and penalties. Define how the system should compare the current sales. Define whether the comparison must be on the basis of amount, percentage of amount, quantity, or simply check whether the customer meets the buying agreement terms. Define whether the rebate or penalty should be calculated as a flat amount or as a percentage of an amount.
Rebate Penalty - Definition Step	RBT_PNLTY_DEFN_STP	Set Up Financials/Supply Chain, Product Related, Order Management Foundation, Rebate and Penalty Definition, Definition Step	Define the points at which the penalty or rebate amount or percentage changes.
Rebate Penalty Table	RBT_PNLTY_TABLE	Set Up Financials/Supply Chain, Product Related, Order Management Foundation, Rebate Penalty Table	Define the qualified sales orders to consider when calculating the rebate or penalty. Select the basis on which the rebate or penalty is to be calculated. Before you select a rebate and penalty definition, establish rebate and penalty definitions on the Rebate Penalty - Definition page.
Calculate Rebates/Penalties	RUN_OM_REBATES	Order Management, Buying Agreements, Rebates and Penalties, Calculate Rebates/Penalties	Establish the parameters for the Calculate Rebates/Penalties process.
Rebates and Penalties	SCON_REBATES	Order Management, Buying Agreements, Rebates and Penalties, Verify Rebates and Penalties	View the results of the Calculate Rebates/Penalties process. View or alter penalty and rebate information on this page.
Rebate Interface	RUN_OM_RBTINTFC	Order Management, Buying Agreements, Rebates and Penalties, Load Rebates/Penalties Intrfc	Populate the interface tables in PeopleSoft Billing with penalty invoice and rebate payment information.

Setting Up Comparison Basis and Parameters for Rebates and Penalties

Access the Rebate Penalty - Definition page (Set Up Financials/Supply Chain, Product Related, Order Management Foundation, Rebate and Penalty Definition, Definition).

Status

Changes by default to Active.

Basis Parameters

Select from the options to define the comparison basis that the system uses to determine whether rebate or penalties are applicable:

Amount: Buying agreement amounts are compared to order amounts. The different between the buying agreement maximum amount or quantity and the total sales amount is used to determine whether the rebate or penalty applies.

Percent: The percentage difference between the buying agreement maximum amount or quantity and the total sales amount or quantity is used to determine whether the rebate or penalty applies.

Quantity: Buying agreement quantities are compared to order quantities. The difference between the buying agreement maximum quantity and the total sales order quantity is used to determine if the rebate or penalty applies.

None: The penalty or rebate calculation is based on whether the customer meets the buying agreement terms. If total sales amount or quantity is greater than the buying agreement amount or quantity, the rebate applies. If total sales amount or quantity is less than the buying agreement amount or quantity, the penalty applies.

Amount or Percent

Select a value to define whether the rebate or penalty should be a flat amount or a percent of an amount. Define as either. The values in the Amount Type and Percent Type fields vary according to the basis parameter that you select. The table lists the possible combinations:

Basis Parameter	Rebate and Penalty Amount Type	Rebate and Penalty Percent Type
Amount, Percent, None	Flat Amount	% of Amount (percent of amount).
Quantity	Flat Amount Flat Amount per Unit Net Price (List-Net) Price	% of Amount. % of Net Price (percent of net price). % of (List-Net) Price (percent of list net price).

Basis Parameter

Rebate and Penalty Amount Type

Rebate and Penalty Percent Type

Amount, Percent, None

Flat Amount

% of Amount (percent of amount).

Quantity

Flat Amount

Flat Amount per Unit

Net Price

(List-Net) Price

% of Amount.

% of Net Price (percent of net price).

% of (List-Net) Price (percent of list net price).

Note. The amount that is referred to in the value % of Amount for rebate percent type is the qualified base that is selected on the Rebate Penalty Table page.

Maximum Amount

The system caps the rebate or penalty at this amount, even if the calculation for the rebate or penalty is a higher figure.

Setting Up the Points to Calculate Rebates and Penalties

Access the Rebate Penalty - Definition Step page (Set Up Financials/Supply Chain, Product Related, Order Management Foundation, Rebate and Penalty Definition, Definition Step).

Break ID

Enter the field and the percent or the basis amount of the rebate or penalty. Where applicable, enter the low and high amounts. The low and high amounts define the breaks at which you define different tiers of rebates or penalties. The available fields on this page are determined by the selections on the Rebate Penalty - Definition page.

The table lists the combinations of basis parameter types, rebate penalty parameter types, and amount or percentage types, which determine whether you must define steps. It also includes examples of sample rules.

Basis Parameter	Rebate Penalty Parameters	Amount or Percent	Step Required?	Definition Steps	Example
None	Percent	% of Amount	No (1 step allowed to enter percent. Comparison to buying agreement terms can only be true or false).	Break ID 1. Percent 3.	If this is a rebate, rebate 3 percent of the basis (defined in rebate/penalty table) when sales are greater than buying agreement terms. If this is a penalty, charge 3 percent of the basis (defined in rebate/penalty table) when sales order is less than buying agreement terms.
None	Amount	Flat Amount	One step to identify the Flat Amount.	Break ID 1 Amount 20,000 USD.	If this is a rebate, the rebate is 20,000 USD when sales are greater than the buying agreement terms. If this is a penalty, the penalty is 20,000 USD when sales are less than the buying agreement terms.
Quantity	Amount	Flat Amount per Unit	At least 1 step.	Break ID 1 Amount 20 USD.	If this is a rebate, the rebate is 20 USD for each unit that exceeds the buying agreement maximum quantity. If this is a penalty, the penalty is 20 USD for each unit that is the difference between the quantity sold and the buying agreement maximum quantity.
Quantity	Amount	Flat Amount	At least 1 step.	Break ID 1 Amount 10,000 USD. Low 1. High 100. Break ID 2, Amount 25,000 USD. Low 101. High 200.	If this is a rebate, the rebate is 10,000 USD when the quantity of sales against the buying agreement is between 1 and 100 units greater than the buying agreement line maximum quantity. The rebate is 25,000 USD if the sales against the buying agreement is between 101 and 200 more than the buying agreement line maximum quantity.
Quantity	Amount	(List-Net) Price	Only 1 step allowed.	Break ID 1. Low 15. High 99999.	If this is a rebate, the rebate does not start until the customer orders 15 units more than the maximum quantity defined on the buying agreement line. The rebate amount is the difference between the list and the net unit prices on the sales order schedule. If there is no upper limit, enter 99999 as the high amount.
Quantity	Amount	Net Price	Only 1 step allowed.	Break ID 1. Low 15. High 99999.	If this is a rebate, the rebate does not start until the customer orders 15 units more than the maximum quantity defined on the buying agreement line. The rebate amount is the net unit price of the order schedule. If there is no upper limit, enter 99999 as the high amount.
Quantity	Percent	% of Amount	At least 1 step.	Break ID 1 Percent 3. Low 1. High 500. Break ID 2 Percent 10. Low 501. High 6000.	If this is a rebate, the rebate is applied when the sales quantity against the buying agreement is between 1 and 500 more than the buying agreement maximum quantity. The rebate is 3% of rebate basis amount. The rebate is 10 percent of the rebate basis amount if the sales quantity against the buying agreement is between 501 and 6000.
Quantity	Percent	(List-Net) Price	At least 1 step.	Break ID 1 Percent 50. Low 1. High 500.	If this is a rebate, the rebate is 50 percent of the difference between list price and the net unit price (List-Net) Price, and the number of units sold (quantity) is between 1 and 500 greater than the buying agreement line maximum quantity.
Quantity	Percent	Net Price	At least 1 step.	Break ID 1 Percent 35. Low 1. High 500.	The rebate is 35 percent of the Net Price, if the number of units sold (quantity) is between 1 and 500 greater than the maximum quantity defined on the buying agreement.
Amount	Percent	% of Amount	At least 1 step.	Break ID 1 Amount 100 USD. Low 1. High 10,000.	If this is a rebate, the rebate is 5 percent of the rebate qualified basis (defined in Rebate/Penalty Table) if the amount difference between the buying agreement terms and the orders is between 1 USD and 10,000 USD.
Amount	Amount	Flat Amount	At least 1 step.	Break ID 1 Amount 100 USD. Low 100,000. High 999,999,999.99	The rebate is 100 USD if the buying agreement terms are exceeded by more than 100,000 USD.
Percent	Percent	% of Amount	At least 1 step.	Break ID 1 Percent 3. Low 5. High 100.	The rebate is three percent of the rebate qualified basis defined in the Rebate/Penalty Table. The rebate is applied if the sales against the buying agreement is more than 5% of the buying agreement maximum amount.
Percent	Amount	Flat Amount	At least 1 step	Break ID 1 Amount 300 USD. Low .01. High 2.00. Break ID 2 Amount 1,000 USD. Low 2..01. High 100.	The rebate is 300 USD if the sales against the buying agreement line is less than or equal to 2% of the buying agreement maximum amount. The rebate is 1,000 USD if the sales against the buying agreement is more than 2% of the buying agreement maximum amount.

Note. The system does not calculate a rebate or penalty over the last high amount or percentage. Overlapping steps are not allowed, and the low amount or percentage must be less than the high amount or percentage.

Setting Up the Parameters for Applying the Rebate or Penalty

Access the Rebate Penalty Table page (Set Up Financials/Supply Chain, Product Related, Order Management Foundation, Rebate Penalty Table).

Qualified Orders

Select All Orders or Invoiced Orders as the amount to compare to buying agreement terms to determine whether a rebate or penalty is applicable.

Qualified Base

Determines the basis on which the system calculates the rebate or penalty. The table describes the options and how each is calculated for rebates that are associated with buying agreements and independent sales rebates.

Note. The qualified base works differently with buying agreement or independent sales rebates.

Qualified Base	Buying Agreement	Sales Rebate
Agreement or Previous Amt/Qty (agreement or previous amount/quantity).	Rebate or penalty calculated on the buying agreement line maximum amount or quantity.	Rebate or penalty calculated on the previous period or compared to period amounts and quantities defined on the independent sales rebate/penalty.
Amount/Qty Difference (amount/quantity difference).	Rebate or penalty calculated based on the difference between sales and the buying agreement amounts.	Rebate or penalty calculated on the difference between the current sales and quantities and previous (or compare to) amounts and quantities defined on the independent sales rebate/penalty.
Qualified Sales Amount/Qty (qualified sales amount/quantity).	Rebate or penalty calculated on the sales that are associated with the buying agreement.	Rebate or penalty calculated on the amount and quantity of sales in the current period.

Establishing the Parameters for the Rebate and Penalty Calculation Process

Access the Calculate Rebates/Penalties page (Order Management, Buying Agreements, Rebates and Penalties, Calculate Rebates/Penalties).

Calculate penalties and rebates for a single buying agreement ID or for all buying agreements in a setID with expiration dates that are between the dates that you enter.

Viewing and Altering the Rebate and Penalty Information

Access the Rebates and Penalties page (Order Management, Buying Agreements, Rebates and Penalties, Verify Rebates and Penalties).

Buying Agreement ID	Displays customers who have a penalty or a rebate for the selected ID and the agreement line number.
Status	Rebates and penalties are created with Pending status. When you review the penalty or rebate, change the status to Approved. manually.
Recalculate ?	Select for a sold to customer, so that rebates and penalties are not recalculated during subsequent runs of the Calculate Rebates/Penalties process.

Populating the Billing Interface Tables

Access the Rebate Interface process page (Order Management, Buying Agreements, Rebates and Penalties, Load Rebates/Penalties Intrfc).

Enter a setID and a buying agreement ID to limit the run to particular setIDs and buying agreement IDs. If you leave the fields blank, the process runs for all setIDs and buying agreement IDs.

Inquiring About Buying Agreements

PeopleSoft Order Management provides easy access to buying agreement information. View order activity for a buying agreement or a buying agreement line, and see all the buying agreements that you establish for a customer or customer group, even down to line detail.

This section lists the pages used to inquire about buying agreements.

Pages Used to Inquire About Buying Agreements

Page Name	Definition Name	Navigation	Usage
Agreement Usage	SCON_HDR_USAGE	Order Management, Buying Agreements, Review Buying Agreement Info, Buying Agreement Usage, Agreement Usage	View order activity against a buying agreement, including the line and schedule number against which the order is applied.
Agreement Summary	SCON_HDR_ORDER	Order Management, Buying Agreements, Review Buying Agreement Info, Line Summary, Agreement Summary	View a summary of the activity for all the lines that are on a buying agreement. You can also select a line to view the line detail on the Agreement Line Use page.
Agreement Line Use	SCON_LINE_ORDER	Order Management, Buying Agreements, Review Buying Agreement Info, Line Usage, Agreement Line Use	View line details of the buying agreement usage.
Customer Buying Agreements	SCON_CUST	Order Management, Buying Agreements, Review Buying Agreement Info, Customer Buying Agreement, Customer Buying Agreements	View buying agreements by customer.
Quote Lines	SCON_QUOTE_LINE	Select a quote, and click the Show Detail Entry link on the Customer Quotes page.	View quote lines.
Buying Agreements Lines	SCON_CUST_LINE	Select a buying agreement, and click the Show Detail Entry link on the Customer Buying Agreements page.	View line information for the buying agreement.
Customer Quotes	SCON_QUOTE	Order Management, Buying Agreements, Review Buying Agreement Info, Customer Quotes	View quote data for a particular sold to customer.