Blanket Purchase Agreement Lines
Blanket purchase agreement lines include details of the goods or services to be purchased from the supplier. The line doesn't contain delivery dates or individual delivery quantities or amounts.
A blanket purchase agreement line can be created in the following ways:
-
Add a line manually
-
Duplicate an existing line
-
Add a line from the procurement catalog
-
Add lines using the upload process
Consider the following attributes when entering a blanket purchase agreement line.
-
Line Type
-
Item
-
Category
-
Price Break Type
-
Item Attributes
Line Type
Line types differentiate purchases for various commodities such as goods and services. Goods are ordered by quantity and price, whereas services are ordered by price.
Implications of your selection of line type:
-
The style of the document you're creating can limit the line types that you can choose from. For example, if the style only allows for purchases of fixed price services then only fixed price services line types are available to choose from.
-
The line type isn't editable once the line is saved. If you need to change your line type after saving it, you must delete the line and add another.
-
When you enter a line type, the application automatically defaults attributes for the line being created.
Item
Enter the Item you want to purchase. Typically the item is an identifier of goods already defined in your procurement catalog. If you enter a defined item, the application displays the purchasing category, item description, unit of measure, and unit price associated with the item.
Category
When entering a line, enter or select the purchasing category of the item you want to purchase. If you choose an item, the application displays the purchasing category for the item. You can't change the purchasing category if you choose an item.
Price Break Type
This attribute is applicable only to blanket purchase agreements. Use the price break type control to leverage cumulative pricing functionality on your blanket purchase agreements and drive pricing discounts based on cumulative purchases across all the client business units buying off the agreement. Select Cumulative if you want the application to choose the price break by considering previous purchase order released quantities for the blanket line. Select Noncumulative if you want the application to choose the price break by using the individual purchase order line quantity.
The following example illustrates how this works.
Blanket Purchase Agreement Line Price = $10
This table defines a set of sample price breaks based on the quantity purchased.
|
Quantity |
Price Break |
|---|---|
|
< 100 |
10 |
|
101-200 |
9 |
|
> 201 |
8 |
This table shows example purchase orders, with line quantities and price breaks based on the sample price breaks defined in the previous table. The cumulative and noncumulative pricing columns demonstrate how price type affects the price break.
|
Purchase Order |
Line |
Quantity |
Cumulative Pricing |
Noncumulative Pricing |
|---|---|---|---|---|
|
ABC-US-1001 |
1 |
120 |
9 |
9 |
|
ABC-US-1002 |
1 |
90 |
8 |
10 |
|
ABC-US-1003 |
1 |
410 |
8 |
8 |
|
Total Released Amount |
$5080 |
$5260 |
Item Attributes
This feature applies only to blanket purchase agreements. You can provide more information such as supplier item auxiliary identifier, supplier URL, manufacturer name, manufacturer URL, manufacturer part number, UNSPSC, image URL, and thumbnail image about the item or the service using the item attributes on the agreement line. This information is then displayed to requesters when they view the agreement content on the catalog. If supplier specifies a SupplierPartAuxiliaryID, then that value is stored as the Supplier Configuration ID on the requisition line.
Some of these item attributes are also translatable into the other languages installed in your application. You can use the agreement loader process to add translations of the item attributes.
How You Automatically Determine Requested Delivery Date Using Lead Time
In the Line page, in the Item Attributes section, use the Lead Time Days field to specify the agreed-upon lead time for delivery. The application can be configured to automatically determine the requested delivery date on purchase orders created from requisitions using the Lead Time Days value.
When requisitions are converted to orders, the requested delivery date on the requisition line is compared to the current date plus the Lead Time Days on the agreement line. The later date is used for the requested delivery date on the order.