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.