Update Blanket Purchase Agreement from Negotiated Award

When a sourcing event is completed, instead of creating a new agreement every time, you can now update an ongoing agreement.

Updating existing agreements from a negotiated award allows you to apply the renegotiated pricing to open purchase orders retroactively, reducing the overhead from maintaining several documents. You can automatically track the changes to existing agreements from the sourcing event, and save significant time and effort.

Update Existing Agreements

After award is completed, you will see two new columns in the awarded suppliers table on the Create Purchasing Documents page: Update Agreement and Agreement Lines. In Update Agreement column, you can select an existing agreement, and in the Agreement Lines column, choose to either update the agreement lines, or add new lines. If you don't select any agreement, then a new agreement will be created.

You can select any agreement to update that matches these criteria:

• Agreement is for the same supplier, supplier site, and Procurement BU as the awarded supplier.

• There are no pending change orders.

• Agreement is not frozen.

• Agreement is in one of the following statuses: Incomplete, Open, Withdrawn, Rejected, On Hold.

An agreement line is considered matching to an awarded negotiation line, if these line attributes are the same: Item, Description, Category Name, UOM Name, Item Revision, Line Type, and Price Break Type. Any lines that are expired or have a requisition line reference won't be updated.

Here are some best practices when choosing Agreement Lines option:

• If the selected agreement has retroactive pricing enabled, then choose the Update matching lines option to apply the renegotiated pricing to open purchase orders retroactively.

• If the selected agreement has retroactive pricing disabled, then choose the Expire and add new lines option, so that upcoming purchase orders can leverage the renegotiated pricing from the new lines.

• If you simply want to add the new lines to an existing agreement without updating or expiring any matching lines, choose the Add new lines option.

When a matching agreement line is updated the following changes are applied:

• Existing item price is replaced.
• New agreement quantity is added to the existing agreement quantity.
• Negotiation references on the line are replaced with the new negotiation details.
• New price breaks are added.
• Negotiation and response line attachments are added for attachments with these categories: From Supplier, To Supplier, Miscellaneous, To Buyer, To Payables, and To Receiver.

Steps to Enable

Use the Opt In UI to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.

Offering: Procurement

Configure Procurement Business Function Setup

In Configure Procurement Business Function setup page, you can choose the default value for the Agreement Lines option which determines how Agreements are updated..

Tips And Considerations

• Contract terms or master contract references aren't updated on the agreement.

• The following agreement fields are not automatically updated:

  • Minimum Release Amount

  • FOB

  • Carrier

  • Freight Terms

  • Shipping Method

  • Required Acknowledgment and Acknowledge Within

Access Requirements

Users who are assigned a configured job role that contains these privileges can access this feature:

• Complete Supplier Negotiation Award (ORA_PON_COMPLETE_SUPPLIER_NEGOTIATION_AWARD_PRIV)

• Create Purchase Order (ORA_PO_CREATE_PURCHASE_ORDER_PRIV)

• Create Purchase Agreement (ORA_PO_CREATE_PURCHASE_AGREEMENT_PRIV)

These privileges were available prior to this update.