5 Manage Agreements

This chapter contains these topics:

Section 5.1, "Managing Agreements"

Section 5.2, "Reviewing Agreement Status"

Section 5.3, "Reviewing Balance Information"

Section 5.4, "Printing Balance Statements"

Section 5.5, "Printing the Agreement Balance Report"

Section 5.6, "Reviewing Penalties"

Section 5.7, "Creating Adjustments"

5.1 Managing Agreements

After you have created an agreement, you need to manage it. For example, you can monitor the transactions that fulfill the terms and stipulations of the agreement. You can also make adjustments, if necessary, to correct agreements that are not in balance.

Complete the following tasks:

  • Reviewing Agreement Status

  • Reviewing Balance Information

  • Printing Balance Statements

  • Printing the Agreement Balance Report

  • Reviewing Penalties

  • Creating Adjustments

5.2 Reviewing Agreement Status

You can use the Agreement Management system to monitor the progress made towards fulfilling the terms of an agreement.

Complete the following tasks:

  • Search for agreements

  • Review agreement status

  • Review transaction information

5.2.1 Searching for Agreements

Navigation

From Agreement Management (G38), choose Daily Operations

From Agreement Management Daily Operations (G381), choose Agreement Search

Frequently, you want to review the status of several agreements that meet one or more conditions. Use the Agreement Search program to display all the agreements that meet the search criteria that you enter.

To search for agreements

On Agreement Search

Figure 5-1 Agreement Search screen

Description of Figure 5-1 follows
Description of "Figure 5-1 Agreement Search screen"

  1. Complete one or more of the search fields.

    If you enter an asterisk (*) in any field, the system displays all the agreements for that specific search criteria.

  2. Choose the agreement that you want to review.

5.2.2 Reviewing Agreement Status

Navigation

From Agreement Management (G38), choose Daily Operations

From Agreement Management Daily Operations (G381), choose Online Statement

After you have located the agreements, you can compare the forecasted time frame that you entered on Agreement Quantities Schedule with the actual quantities that are included on transactions that the system has assigned to the agreement. This allows you to compare the forecasted schedule to the actual compliance.

You can set a processing option if you want the online statement to display as the total agreement quantity rather than the scheduled quantities. You can also toggle between the two displays, regardless of the processing option setting.

To review agreement status

On Online Statement

Figure 5-2 Online Statement screen

Description of Figure 5-2 follows
Description of "Figure 5-2 Online Statement screen"

  1. Complete one or more of the search fields.

  2. To view the transaction detail lines for a specific committed quantity, access the Committed Transactions Window.

    Figure 5-3 Committed Transaction window

    Description of Figure 5-3 follows
    Description of "Figure 5-3 Committed Transaction window"

  3. To view the agreement and transaction information for the actual quantity on a specific line, access the Agreement Transactions Window.

    Figure 5-4 Agreement Transactions window

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    Description of "Figure 5-4 Agreement Transactions window"

5.2.3 What You Should Know About

Topic Description
Quantity information The system subtracts the actual quantity and committed quantity from the agreement quantity to calculate the remaining quantity to fulfill the agreement. The system displays and calculates the quantities as follows:

  • The agreement quantity is the total for this item when the agreement was initiated.

  • The actual quantity is the amount delivered to the destination. The actual quantity displays after delivery confirmation or sales update. Stock movement transactions display immediately. The system updates this quantity as ambient, standard, or weight, depending on the value that you defined on the Agreement Master screen.

  • The committed quantity is the amount entered on a transaction. The committed quantity displays immediately after you enter the transaction.
Currency-based agreements If you created the agreement as a currency amount rather than product quantity, Online Statement displays currency amounts rather than the quantities.
Making agreement adjustments When you view Online Statement in detail mode, you can access the Agreement Adjustments program. When you do this, the system copies the agreement information to the adjustment fields.
Reviewing in summary mode When you view Online Statement in summary mode, the system subtotals the information by agreement, item number, and due to.

You cannot access Committed Quantities, Agreement Transaction Inquiry, or Agreement Adjustments when you set Online Statement for summary mode.
Viewing notes Access the notes function from any of the transaction windows to work with notes at the individual transaction level.

5.2.5 Reviewing Transaction Information

Navigation

From Agreement Management (G38), choose Daily Operations

From Agreement Management Daily Operations (G381), choose Transaction Ledger

You can review all the transactions that have been assigned to an agreement as of today. Transaction Ledger provides a running balance of the transactions that affect a specific agreement with a partner.

To review transaction information

On Agreement Transaction Ledger

Figure 5-5 Transaction Ledger screen

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Description of "Figure 5-5 Transaction Ledger screen"

  1. Complete one or more of the search fields.

  2. To review specific transaction information, choose the option to display Transaction Detail.

Figure 5-6 Agreement Transaction Detail

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Description of "Figure 5-6 Agreement Transaction Detail"

5.3 Reviewing Balance Information

Navigation

From Agreement Management (G38), choose Daily Operations

From Agreement Management Daily Operations (G381), choose Online Balance Inquiry

You can view the item balances for one or more contracts. Use Online Balance Inquiry to identify the quantity of product that you have shipped, the quantity that you have received, and the quantity that is outstanding on the agreement.

To review balance information

On Online Balance Inquiry

Figure 5-7 Online Balance Inquiry screen

Description of Figure 5-7 follows
Description of "Figure 5-7 Online Balance Inquiry screen"

  1. Complete one or more of the search fields.

  2. To view the agreement and transaction information for the shipped or received quantities on a specific line, access the Agreement Transactions Window.

5.3.1 What You Should Know About

Topic Description
Quantity information The system subtracts the quantity delivered and quantity received from the quantity identified in the agreement to calculate the outstanding balance.
Currency-based agreements If you created the agreement as a currency amount rather than product quantity, the online balance displays currency amounts rather than the quantities.
Making agreement adjustments When you view Online Balance Inquiry in detail mode, you can access the Agreement Adjustments program. When you do this, the system copies the agreement information to the adjustment fields.
Reviewing in summary mode When you view Online Balance Inquiry in summary mode, the system subtotals the information by agreement, item number, and due to.

You cannot access Committed Quantities or Agreement Adjustments when you set Online Balance Inquiry for summary mode.

5.3.2 Processing Options

See Section 11.9, "Online Balance Inquiry (P38375)".

5.4 Printing Balance Statements

Navigation

From Agreement Management (G38), choose Agreement Reports

From Agreement Management Reports (G382), choose Balance Statements

You might want to send statements to your business partners that show the current status of one or more agreements that you have with them. You can set the data selection values before running the program. You can also use any of the Agreement Master fields to select agreements for printing statements. For example, you can create a statement for a single partner or agreement number. You can also produce statements for any of the agreements that match one or more of the reporting codes.

Figure 5-8 Agreement Master Statement

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Description of "Figure 5-8 Agreement Master Statement "

5.5 Printing the Agreement Balance Report

Navigation

From Agreement Management (G38), choose Agreement Reports

From Agreement Management Reports (G382), choose Agreement Balance Report

The Agreement Balance report allows you to compare the movement of a product in and out of your inventory for a particular agreement. For example, you might want to review a product's source, the quantity that you currently have in your inventory, and the product's destination.

You can set processing options to print the following types of information:

  • All transactions, including source and destination information, for a period that you specify

  • A summary of movement and quantity information for the product in the agreement for a period that you specify.

5.5.1 Agreement Balance Report

Figure 5-9 Agreement Balance report

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Description of "Figure 5-9 Agreement Balance report"

Figure 5-10 Agreement Balance Report

Description of Figure 5-10 follows
Description of "Figure 5-10 Agreement Balance Report"

5.6 Reviewing Penalties

Navigation

From Agreement Management (G38), choose Agreement Reports

From Agreement Management Reports (G382), choose Agreement Penalties Report

You can print a report that includes one, several, or all customers whose agreements have incurred a penalty status. This report identifies any of your business partners who have not met or have exceeded the terms of the agreement. In addition, the report specifies the penalty schedule that applies to each agreement or transaction with a penalty status.

Figure 5-11 Agreement Penalties report

Description of Figure 5-11 follows
Description of "Figure 5-11 Agreement Penalties report"

See Also:

5.7 Creating Adjustments

Navigation

From Agreement Management (G38), choose Daily Operations

From Agreement Management Daily Operations (G381), choose Agreement Adjustments

Alternatively, you also access Agreement Adjustments from the Online Statement and Online Balance Inquiry programs.

If an imbalance on an agreement exists, you can create an adjustment to bring the agreement to a status that is agreed upon by your company and your partner. For example, a transaction might not have been correctly assigned.

You must assign a document number and type for all adjustments so the system can track the adjustment.

Depending on the terms that your company and your partner agree upon, you can create adjustments with different types of information. For example, you can:

  • Make a manual adjustment and enter a specific quantity of a product

  • Have the system reduce the product quantity to zero

  • Create a sales order from the adjustment information

  • Close the agreement

5.7.1 What You Should Know About

Topic Description
Changing or deleting adjustments You cannot change or delete an existing adjustment. If you enter an incorrect adjustment, you must create a new adjustment to correct the error.
Protected fields When you access Agreement Adjustments from either Online Statement or Online Balance Inquiry, the system uses the agreement information as default entries for certain fields. You cannot change these fields in Agreement Adjustments.

To create adjustments

On Agreement Adjustments

Figure 5-12 Agreement Adjustments screen

Description of Figure 5-12 follows
Description of "Figure 5-12 Agreement Adjustments screen"

  1. Complete the following fields:

    • Adjustment Type

    • Adjustment Reason

    • Agreement Number

    • Supplement Number

    • Source

    • Source Type

    • Destination

    • Destination Type

    • Product

    • Due To

    • Transaction Quantity

  2. Accept the defaults, or complete the following fields:

    • Depot

    • Document Number

    • Document Company

    • Document Type

    • General Ledger Date

    • Adjustment Date

    • Explanation

  3. To make the adjustment on an actual sales transaction, complete the following optional field:

    • Create Sales Order

  4. To close the agreement, complete the following fields:

    • Close Agreement

    • Cancel Date

    • Cancel Reason

Field Explanation
Create S.O.(Y/N) A flag that identifies if the system should create a sales order from the adjustment information. Valid values are:

Y or 1

Yes, create a sales order based on the adjustment information entered.

N or 0

No, make the adjustment without creating a sales order. This is the default.
Close Agreement (Y/N) Use this flag to denote whether an agreement is closed.

5.7.2 Processing Options

See Section 11.11, "Agreement Adjustments (P38020)".

5.7.3 Agreement Management Statement

Figure 5-13 Agreement Management Statement report

Description of Figure 5-13 follows
Description of "Figure 5-13 Agreement Management Statement report"