Negotiation Terms
You can use the Terms tab to specify the payment or discount conditions as well as the transportation arrangements.
You can also use the Terms tab to set up currency conversion rates for multi-currency negotiations.
Agreement Terms
These terms apply only to agreements (blanket purchase agreement or contract purchase agreement)
The following table shows the negotiation terms that are related to agreements and an explanation for each term.
|
Field |
Meaning |
|---|---|
|
Agreement Start Date |
The date on which the agreement becomes effective |
|
Agreement End Date |
The date on which the agreement expires |
|
Agreement Amount |
The expected final amount over the lifetime of the agreement |
|
Minimum Release Amount |
This amount restricts the association of the agreement to a PR release if the released amount isn't greater or equal to the minimum amount. |
Payment and Shipping and Handling
These terms specify the payment and transportation arrangements that are used on the purchase documents.
The following table shows terms related to payment and shipping and handling.
|
Field |
Meaning |
|---|---|
|
Payment terms |
The terms used to schedule payments and to calculate due dates, discount dates, and discount amounts for each invoice. |
|
Shipping Method |
The shipping method you want the supplier to use |
|
Freight terms |
The terms that determine whether you or your supplier pay for freight charges |
|
FOB |
The point during the shipping process at which you accept responsibility for the item |
|
Buyer managed transportation |
Indicates that you're responsible for arranging the transportation, from picking up the requested goods to delivering to ship-to locations specified on the order. |
Multi-Currency
When you create your negotiation, the negotiation currency is set according to the Procurement BU that owns the negotiation, although you can change that if necessary. You can specify the price precision (or number of decimal places) that's used in any calculations performed.
If you have suppliers who want to respond in a different currency, you can also identify any additional currencies in which you accept responses. To enable multi-currency negotiations, check the Allow responses in other currencies check box. You must specify the additional currency and specify an conversion rate between the negotiation currency and that response currency.