User Guide for Purchase Contracts

User Guide for Purchase Contracts
Infor LN Procurement User
Guide for Purchase Contracts
Copyright © 2015 Infor
Important Notices
The material contained in this publication (including any supplementary information) constitutes and contains confidential
and proprietary information of Infor.
By gaining access to the attached, you acknowledge and agree that the material (including any modification, translation
or adaptation of the material) and all copyright, trade secrets and all other right, title and interest therein, are the sole
property of Infor and that you shall not gain right, title or interest in the material (including any modification, translation or
adaptation of the material) by virtue of your review thereof other than the non-exclusive right to use the material solely
in connection with and the furtherance of your license and use of software made available to your company from Infor
pursuant to a separate agreement, the terms of which separate agreement shall govern your use of this material and all
supplemental related materials ("Purpose").
In addition, by accessing the enclosed material, you acknowledge and agree that you are required to maintain such
material in strict confidence and that your use of such material is limited to the Purpose described above. Although Infor
has taken due care to ensure that the material included in this publication is accurate and complete, Infor cannot warrant
that the information contained in this publication is complete, does not contain typographical or other errors, or will meet
your specific requirements. As such, Infor does not assume and hereby disclaims all liability, consequential or otherwise,
for any loss or damage to any person or entity which is caused by or relates to errors or omissions in this publication
(including any supplementary information), whether such errors or omissions result from negligence, accident or any
other cause.
Although Infor has taken due care to ensure that the material included in this publication is accurate and complete, Infor
cannot warrant that the information contained in this publication is complete, does not contain typographical or other
errors, or will meet your specific requirements. As such, Infor does not assume and hereby disclaims all liability,
consequential or otherwise, for any loss or damage to any person or entity which is caused by or relates to errors or
omissions in this publication (including any supplementary information), whether such errors or omissions result from
negligence, accident or any other cause.
Without limitation, U.S. export control laws and other applicable export and import laws govern your use of this material
and you will neither export or re-export, directly or indirectly, this material nor any related materials or supplemental
information in violation of such laws, or use such materials for any purpose prohibited by such laws.
Trademark Acknowledgements
The word and design marks set forth herein are trademarks and/or registered trademarks of Infor and/or related affiliates
and subsidiaries. All rights reserved. All other company, product, trade or service names referenced may be registered
trademarks or trademarks of their respective owners.
Publication Information
Document code
procpcug (U9822)
Release
10.4.x Cloud Edition (10.4.1)
Publication date
October 27, 2015
Table of Contents
About this document
Chapter 1 Introduction.........................................................................................................................7
Contracts in a multisite structure..................................................................................................8
Corporate purchase contracts.............................................................................................8
Central contracts.................................................................................................................8
Chapter 2 Procedure..........................................................................................................................11
Specifying purchase contracts....................................................................................................11
Chapter 3 Corporate contracts..........................................................................................................15
Corporate purchase contracts....................................................................................................15
Restrictions.......................................................................................................................15
Specifying corporate purchase contracts..........................................................................16
Specifics............................................................................................................................17
Chapter 4 Contract retrieval..............................................................................................................19
Purchase contracts and purchase schedules.............................................................................19
Purchase contracts and purchase orders...................................................................................19
Chapter 5 Additional processes........................................................................................................21
Purchase contract additional processes.....................................................................................21
Copying purchase contracts.......................................................................................................22
Evaluating purchase contracts....................................................................................................23
Appendix A Glossary.........................................................................................................................25
Index
About this document
This document provides an introduction to purchase contracts and explains the steps and functions in
the purchase contract procedure. The process to manage corporate purchase contracts, and contract
retrieval are also detailed.
Assumed knowledge
Although you need no detailed knowledge of the LN software to read this guide, general knowledge of
the Infor LN functionality will help you understand this guide.
Document summary
This table shows the chapters of this guide:
Chapter number
Chapter title
Content
Chapter 1
Introduction
Introduction to purchase contracts
Chapter 2
Procedure
Steps in the purchase contract procedure
Chapter 3
Corporate contracts
Definition and setup of corporate purchase contracts
Chapter 4
Contract retrieval
Purchase contract retrieval for purchase
orders and schedules
Chapter 5
Additional processes
Additional functionality in the purchase
contract procedure
References
Use this guide as the primary reference for purchase contracts. Use the current editions of these related
references to research information that is not covered in this guide:
▪
▪
▪
▪
User Guide for Purchase Master Data U9817 US
Use this guide to understand the setup of purchase master data.
User Guide for Terms and Conditions U9499 US
Use this guide to understand the setup and use of terms and condition agreements.
User Guide for Requests for Quotation (RFQs) U9821 US
Use this guide to understand the requests for quotation procedure.
User Guide for Purchase Orders U9824 US
Use this guide to understand the purchase order procedure.
Infor LN Procurement | User Guide for Purchase Contracts | 5
About this document
▪
▪
▪
User Guide for Purchase and Sales Schedules U9541 US
Use this guide to understand the purchase and sales schedule procedures.
User Guide for Pricing U9179 US
Use this guide to understand the pricing functionality.
User Guide for Material Pricing U9865 US
Use this guide to understand the material pricing functionality.
How to read this document
This document was assembled from online Help topics. As a result, references to other sections are
presented as shown in the following example:
For details, refer to Introduction. To locate the referred section, please refer to the Table of Contents or
use the Index at the end of the document.
Underlined terms indicate a link to a glossary definition. If you view this document online, clicking the
underlined term takes you to the glossary definition at the end of the document.
Comments?
We continually review and improve our documentation. Any remarks/requests for information concerning
this document or topic are appreciated. Please e-mail your comments to documentation@infor.com .
In your e-mail, refer to the document number and title. More specific information will enable us to process
feedback efficiently.
Contacting Infor
If you have questions about Infor products, go to the Infor Xtreme Support portal.
If we update this document after the product release, we will post the new version on this website. We
recommend that you check this website periodically for updated documentation.
If you have comments about Infor documentation, contact documentation@infor.com .
6 | Infor LN Procurement | User Guide for Purchase Contracts
Chapter 1
Introduction
1
Purchase contracts are used to register agreements with a buy-from business partner for the delivery
of specific goods.
These agreements can be registered at the following levels:
▪
▪
Purchase contract lines
In contract lines, the agreements with a business partner about the delivery of a particular
item or group of items for a specified period of time are registered. These agreements are
focused on total quantities, prices, and discounts. You can specify an effective period and
indicate whether the minimum quantity to purchase is binding.
Terms and conditions agreements
In terms and conditions agreements, detailed terms and conditions regarding orders, planning,
logistics, invoicing, and demand pegging regarding the sale, purchase, or transfer of goods,
are registered. A purchase terms and conditions agreement must be linked to a normal
purchase contract before you can use it.
Contract types
You can specify these contract types:
▪
▪
Normal contracts
Special contracts
For each purchase business partner, you can close multiple special contracts in one period. In a specific
period, you cannot specify more than one normal contract per item or price group for a buy-from business
partner.
Purchase contracts are used as the basis of purchase orders or purchase schedules. The data specified
in the purchase contract serves as a parent of the data that you specify in the linked purchase order or
purchase schedule.
When creating planned purchase orders or purchase schedules from Enterprise Planning, during the
supplier selection process, purchase business partners are searched for who can supply the required
item. Based on the priority search levels specified on the Buy-from BP Search tab in the Purchase
Schedule Parameters (tdpur0100m500) session and on the Buy-from BP Search Orders tab in the
Purchase Order Parameters (tdpur0100m400) session, purchase contracts can be used to search for
these purchase business partners. If valid business partners are found, they are sent to and selected
by Enterprise Planning.
Infor LN Procurement | User Guide for Purchase Contracts | 7
Introduction
Contracts in a multisite structure
Corporate purchase contracts
In a multicompany structure, you can also specify a corporate purchase contract. Such a contract is
used to centrally specify price agreements (by purchase contract line), and to decentrally specify logistic
agreements (by purchase contract line detail).
Corporate purchase contracts allow you to make keen price agreements on a corporate level and to
use these prices on site level. You can use corporate purchase contracts only for push schedules.
Note
Corporate purchase contracts are not specified on contract header level, but on line level. Therefore, a
purchase contract can include both lines of the Total type and lines of the Contract Line type. Total
lines have linked contract line details, which can apply only to corporate purchase contracts. Contract
lines apply to regular purchase contracts.
Central contracts
In a multicompany structure, you can define a central contract that can be used by various purchase
offices from different logistic companies. The following are applicable to these contracts:
▪
▪
▪
▪
▪
▪
▪
The central purchase office maintains the purchase contract and purchase pricing.
Price and logistic agreements are specified on a central level, by purchase contract line.
Each separate logistic company (site) purchases goods directly from suppliers, handles
receipts, and pays invoices.
The local purchase orders are based on the conditions, prices, and discounts laid down in the
central contract.
The local companies' purchased quantities are aggregated to the central contract.
In the company that maintains the central contract, you cannot use delivery schedules to
update planned inventory transactions, because the inventory is present in other companies.
You can only use the delivery schedules to display information.
LN records the supplier performance information in the local companies that issue the purchase
orders.
Note
Before you can use central contracts, the companies must share the contract tables by means of logical
table linking or by replication.
If you share the contract lines table, the Use Corporate Purchase Contracts check box in the Purchase
Contract Parameters (tdpur0100m300) session must have the same value for all companies.
For more information, refer to:
▪
User's Guide for Multicompany Structures (U9504 US)
8 | Infor LN Procurement | User Guide for Purchase Contracts
Introduction
▪
User's Guide for Multicompany Table Sharing (U9505 US)
Infor LN Procurement | User Guide for Purchase Contracts | 9
Introduction
10 | Infor LN Procurement | User Guide for Purchase Contracts
Chapter 2
Procedure
2
Specifying purchase contracts
To record the agreements that you made with a buy-from business partner:
Step 1: Purchase Contracts (tdpur3100m000)
Specify the general data for a purchase contract header in the Purchase Contracts (tdpur3100m000)
session. This session includes mainly purchase business partner-related information. On the contract
header, you can also link a terms and conditions agreement.
The terms and conditions agreement can be linked as follows in this session:
▪
▪
Manually, by selecting an agreement from the Terms and Conditions (tctrm1100m000) session.
By generating an agreement from a template, which is automatically linked to the contract
header. Select Generate Terms and Conditions from Template from the appropriate menu
to start the Generate Terms and Conditions from Template (tctrm2200m000) session.
The following can be linked to a contract:
▪
▪
▪
Both a terms and conditions agreement and contract lines
Only a terms and conditions agreement and no contract lines
Only contract lines and no terms and conditions agreement
Step 2: Purchase Contract Lines (tdpur3101m000)
Specify purchase contract lines in the Purchase Contract Lines (tdpur3101m000) session, which include
the agreements with a purchase business partner about a certain item during a period of time.
Step 3: Purchase Contract Prices (tdpur3103m000)
In the Purchase Contract Prices (tdpur3103m000) session, record prices and discounts for the purchase
contract line in a purchase contract price revision.
Infor LN Procurement | User Guide for Purchase Contracts | 11
Procedure
If the contract line item is a configurable item, and the Option Based Pricing check box is selected in
the Purchase Contract Lines (tdpur3101m000) session, item prices are retrieved from the generic price
list in Manufacturing and not from the Purchase Contract Prices (tdpur3103m000) session.
If no valid price and discount can be retrieved from the purchase contract, LN will continue searching
for a price and discounts in other sources.
For more information, refer to Setting up purchase contract price revisions (p. 12) .
Step 4: Purchase Contract Line Logistic Data (tdpur3102m000)
In the Purchase Contract Line Logistic Data (tdpur3102m000) session, specify purchase contract line
logistic data if you want to link purchase schedules with external business partners to the contract line.
If you only use purchase schedules with internal business partners, a contract is not required.
The purchase contract line logistic data provides default values to the purchase schedule that is linked
to the purchase contract line. If you do not specify logistic data, you cannot create a purchase schedule
for an external business partner.
For more information, refer to Setting up contract line logistic data (p. 13) .
Step 5: Delivery Contract (tdpur3104m000)
In the Delivery Contract (tdpur3104m000) session, you can create a delivery contract instead of a
purchase schedule if you already know the time-phased delivery details. A delivery contract is not a real
schedule, but a schedule solution to generate purchase orders in time.
For more information, refer to Setting up a delivery contract (p. 13) .
Note
You can also complete the previous steps using the Purchase Contract (tdpur3600m000) or Purchase
Contracts (tdpur8330m000) sessions.
To specify corporate purchase contracts, refer to Corporate purchase contracts (p. 15) .
Setting up purchase contract price revisions
To set up a purchase contract price revision:
1.
Create a purchase contract in the Purchase Contracts (tdpur3100m000) session.
2.
Create a purchase contract line in the Purchase Contract Lines (tdpur3101m000) session.
3.
From the appropriate menu in the Purchase Contract Lines (tdpur3101m000) session, select
Contract Prices. The Purchase Contract Prices (tdpur3103m000) session starts.
4.
In the Purchase Contract Prices (tdpur3103m000) session, specify the purchase contract price
revisions.
12 | Infor LN Procurement | User Guide for Purchase Contracts
Procedure
Setting up contract line logistic data
To set up logistic agreements for a purchase contract line:
1.
Create a purchase contract in the Purchase Contracts (tdpur3100m000) session.
2.
Create a purchase contract line in the Purchase Contract Lines (tdpur3101m000) session,
with:
The Purchase Schedule in use check box selected.
The Delivery Contract Available check box cleared.
▪
▪
3.
From the appropriate menu in the Purchase Contract Lines (tdpur3101m000) session, select
Logistic Data. The Purchase Contract Line Logistic Data (tdpur3102m000) session starts.
4.
In the Purchase Contract Line Logistic Data (tdpur3102m000) session, specify the purchase
contract logistic data.
Note
If the purchase contract is a corporate purchase contract and purchase contract line details are specified
for a purchase contract line in the Purchase Contract Line Details (tdpur3101m100) session, you must
also specify logistic agreements for the purchase contract line detail in the Purchase Contract Line
Logistic Detail Line (tdpur3102m100) session. In the Purchase Contract Line Details (tdpur3101m100)
session, choose Logistic Detail Line.
Setting up a delivery contract
When you specify a contract and you know the time-phased delivery details, you can create a delivery
contract instead of a purchase schedule. A delivery contract is not a real schedule, but a schedule
solution to generate purchase orders on time.
To set up a delivery contract:
1.
Create a purchase contract in the Purchase Contracts (tdpur3100m000) session.
2.
Create a purchase contract line in the Purchase Contract Lines (tdpur3101m000) session,
with:
The Apply Contract for All Items in Price Group check box cleared.
The Purchase Schedule in use check box cleared.
The Delivery Contract Available check box selected.
▪
▪
▪
3.
From the appropriate menu in Purchase Contract Lines (tdpur3101m000) session, select
Delivery Contract. The Delivery Contract (tdpur3104m000) session starts.
4.
Specify the delivery dates and the quantities to be delivered on the specified dates in the
Delivery Contract (tdpur3104m000) session.
5.
From the appropriate menu in the Delivery Contract (tdpur3104m000) session, select Generate
Purchase Orders to generate purchase orders for the planned deliveries in the Generate
Purchase Orders (tdpur3204m000) session. You can generate purchase orders for the planned
deliveries only if the status of the purchase contract and the purchase contract line are Active.
Infor LN Procurement | User Guide for Purchase Contracts | 13
Procedure
14 | Infor LN Procurement | User Guide for Purchase Contracts
Chapter 3
Corporate contracts
3
Corporate purchase contracts
Corporate purchase contracts are used by multisite companies to negotiate contractual agreements
with a buy-from business partner, after which price agreements are centrally specified by purchase
contract line, and logistic agreements are decentrally specified by purchase contract line detail. Corporate
purchase contracts allow you to make keen price agreements on a corporate level and to use these
prices on site level.
With corporate purchase contracts, you can:
▪
▪
▪
Have a purchase contract per buy-from business partner and item for multiple sites
Track the total quantity by purchase contract line and break down the requested quantity by
site
Track actual consumptions against the total quantity by contract line (representing the
corporation), and contract line detail (representing a site) for performance analytics
Restrictions
Before you can specify corporate purchase contracts:
▪
▪
▪
▪
The Use Corporate Purchase Contracts check box must be selected in the Purchase Contract
Parameters (tdpur0100m300) session.
The Purchase Schedule in Use check box must be selected and the Schedule Type field
must be Push Schedule for the contract item in the Item (tcibd0101s000) session. Therefore,
you can use corporate purchase contracts only for push schedules.
The Release to Warehouse check box must be selected for the contract item in the Items Purchase (tdipu0101m000) session.
And specify purchase contract line details for a purchase contract line, its status must be Free
and the Advised Quantity, Called Quantity, and Invoiced Quantity must be zero.
Note
Corporate purchase contracts are not specified on contract header level, but on line level. Therefore, a
purchase contract can include both lines of the Total type and lines of the Contract Line type. Total
Infor LN Procurement | User Guide for Purchase Contracts | 15
Corporate contracts
lines have linked contract line details, which can apply only to corporate purchase contracts. Contract
lines apply to regular purchase contracts.
Specifying corporate purchase contracts
To record the corporate agreements you made with a buy-from business partner:
Step 1: Purchase Contracts (tdpur3100m000)
Specify a purchase contract header in the Purchase Contracts (tdpur3100m000) session.
Step 2: Purchase Contract Lines (tdpur3101m000)
Specify a purchase contract line in the Purchase Contract (tdpur3600m000) session.
Step 3: Purchase Contract Line Logistic Data (tdpur3102m000)
Specify logistic agreements for the purchase contract line in the Purchase Contract Line Logistic Data
(tdpur3102m000) session.
For more information, refer to Setting up contract line logistic data (p. 13) .
Step 4: Purchase Contract Prices (tdpur3103m000)
Specify a contract price revision for the purchase contract line in the Purchase Contract Prices
(tdpur3103m000) session.
These prices are also used by the purchase contract line details that are linked to the purchase contract
(total) line.
If the Cumulative Price Break check box is selected in the Purchase Contract Prices (tdpur3103m000)
session, a schedule line’s price is calculated based on the aggregated CUM values of all schedules that
share this contract total line.
Step 5: Purchase Contract Line Details (tdpur3101m100)
Specify purchase contract line details in the Purchase Contract Line Details (tdpur3101m100) session.
Step 6: Purchase Contract Line Logistic Detail Line (tdpur3102m100)
Specify logistic agreements for a purchase contract line detail in the Purchase Contract Line Logistic
Detail Line (tdpur3102m100) session. This session retrieves its defaults from the Purchase Contract
Line Logistic Data (tdpur3102m000) session, which is linked to the parent purchase contract (total) line.
For more information, refer to Setting up contract line logistic data (p. 13) .
16 | Infor LN Procurement | User Guide for Purchase Contracts
Corporate contracts
Step 7: Split Line (tdpur3101m200)
Optionally, in the Split Line (tdpur3101m200) session, you can split a purchase contract line detail into
two line details. The information for the new contract line detail is retrieved from the Purchase Contract
Line Details (tdpur3101m100) session from which the split is initiated. Logistic agreements are also
automatically retrieved for the new purchase contract line detail.
Note
You can also complete the previous steps using the Purchase Contract (tdpur3600m000), Purchase
Contract Line (tdpur3601m000), or Purchase Contracts (tdpur8330m000) sessions.
Specifics
The following are specific to corporate purchase contracts:
▪
▪
▪
During the supplier selection process, when Enterprise Planning searches for a contract line
detail that can be linked to a push schedule, the warehouse for the plan item in the Items Planning (cprpd1100m000) session is used. This warehouse must be part of the same cluster
as the purchase contract line detail's warehouse in the Purchase Contract Line Details
(tdpur3101m100) session.
A purchase contract Total line has linked purchase contract line details and includes the
totaled quantities and amounts of these contract line details.
Schedule cumulatives are reset by purchase contract Total line in the Reset Cumulatives by
Contract Total Line (tdpur3230m100) session. This session is required to simultaneously reset
the cumulatives for schedules that share the same contract total line, so the price breaks from
the Purchase Contract Prices (tdpur3103m000) session make sense.
Infor LN Procurement | User Guide for Purchase Contracts | 17
Corporate contracts
18 | Infor LN Procurement | User Guide for Purchase Contracts
Chapter 4
Contract retrieval
4
Purchase contracts and purchase schedules
When a purchase schedule is generated, LN links a normal contract to the purchase schedule. To link
a special contract, you must remove the link to the normal contract. From the appropriate menu in the
Purchase Schedules (tdpur3110m000) session, click Change Contract to select a special contract from
the Selected Purchase Contract Lines (tdpur3512s000) session.
You can replace the normal contract with a special contract, only if receipts are not booked for the
purchase schedule. If receipts are booked, you must terminate the existing purchase schedule and
create a new purchase schedule in the Terminate Purchase Schedule (tdpur3210m100) session. This
allows you to link a special contract to the newly created purchase schedule.
When LN links a contract to the purchase schedule, the schedule header is updated with the default
values of the linked contract. Specific addresses, contract terms, and prices and discounts are copied
to the schedule.
Note
▪
▪
For purchase schedules, LN uses the current date to search for effective and Active purchase
contracts.
For schedules lines with a configured item, by default the Option Based Pricing check box
is selected in the Purchase Contract Lines (tdpur3101m000) session. For more information,
refer to Configured items on purchase schedules.
Purchase contracts and purchase orders
The process used to link purchase contracts to purchase orders, is based on the setting of these
parameters in the Purchase Contract Parameters (tdpur0100m300) session:
▪
▪
▪
▪
Interactive Contract Linking
Link Special Contract automatically
Select Special Contract at Transfer from EP
Consider Purchase Contracts when generating Purchase Orders
Infor LN Procurement | User Guide for Purchase Contracts | 19
Contract retrieval
For purchase orders, LN uses the date specified in the Purchase Price Date Type field (such as the
Order Date, System Date, or Delivery Date) of the Pricing Parameters (tdpcg0100m000) session, to
search for effective and Active purchase contracts.
To retrieve terms and conditions, for an order line, from an active contract, the link to the order line is
not required. Therefore, the contract number is specified on the order line only if an active contract line
is linked to the order line. For more information, refer to Retrieval of terms and conditions.
20 | Infor LN Procurement | User Guide for Purchase Contracts
Chapter 5
Additional processes
5
Purchase contract additional processes
A number of processes do not always occur in the purchase contract procedure, but can be applicable
in specific situations.
You can:
▪
▪
▪
▪
▪
▪
▪
▪
▪
Use material prices on purchase contract lines. If the Material Pricing in Procurement check
box is selected in the Material Price Parameters (tcmpr0100m000) session, after setting up
the material pricing master data, LN can retrieve material price information for a contract line.
Activate or deactivate a range of purchase contracts in the Activate/Deactivate Contracts
(tdpur3205m000) session.
Print contract acknowledgements to send to the buy-from business partner in the Print Purchase
Contract Acknowledgments (tdpur3405m000) session.
Copy purchase contracts in the Copy Purchase Contracts (tdpur3801m000) session.
Copy quotations to a purchase contract in the Convert RFQs (tdpur1202m000) session.
Create requests for quotation based on purchase contracts in the Generate RFQs from
Contracts (tdpur3201m000) session.
Check whether the agreed quantities are met at the end of a contract's effective period in the
Evaluate Purchase Contracts (tdpur3420m000) session. You can also monitor, by extrapolating,
the contract's progress during the effective period. A report is printed that contains the
deviations. An evaluation for the complete contract can be executed by not printing the separate
contract lines. Small deviations are tolerated and are not printed.
Send a letter to inform the purchase business partner about the closure or expiration of the
contract in the Print Purchase Contract Termination Letters (tdpur3406m000) session.
Terminate or delete purchase contracts that are no longer valid, or that have ended early in
the Delete/Terminate Purchase Contracts (tdpur3203m000) session.
Infor LN Procurement | User Guide for Purchase Contracts | 21
Additional processes
Copying purchase contracts
You can copy purchase contracts in the Copy Purchase Contracts (tdpur3801m000) session.
You can always copy a normal contract to a normal contract or a special contract to a special contract.
Whether or not you can copy a normal contract to a special contract, and a special contract to a normal
contract, depends on the settings of these check boxes in the Purchase Contract Parameters
(tdpur0100m300) session:
▪
▪
Copy Special Contract to Normal Contract
Copy Normal Contract to Special Contract
When you copy to a new normal contract, LN verifies whether a normal contract already exists:
▪
▪
▪
In the same period
With the same price group or item
For the same buy-from business partner
If such a contract already exists and the contract status is Active, copying is not allowed.
If no such contract exists, when you copy to a new normal contract:
▪
▪
The new contract's effective date will be just after the expiry date of the old contract
The contract period will be one year
Contracts are copied with a new contract number, which is determined in the same way as when you
specify a new contract in the Purchase Contracts (tdpur3100m000) session, but with different effective
and expiry dates. The purchase contract price revisions that are linked to the old contract with effective
dates that are in the effectivity period of the new contract, are copied to the new contract. If no valid
price revision exists, and the Copy Prices check box is selected in the Copy Purchase Contracts
(tdpur3801m000) session, the last price revision of the old contract is copied to the new contract's price
revision with an effective date that is equal to the contract line's effective date.
Note
Discounts and discount schedules from the old price revision are not automatically included when you
copy prices to the new contract's price revision. To copy discounts to the new contract's price revision
as well, select the Copy Discounts check box in the Copy Purchase Contracts (tdpur3801m000) session.
If price books or discount schedules of the old contract's price revision are not valid in the run time of
the new contract, you can create new price books and new discount schedules for the new contract by
selecting the Create New Price Book and Create New Discount Schedule check boxes in the Copy
Purchase Contracts (tdpur3801m000) session.
Delivery contract(s) that are linked to the old contract can be copied to the new contract. To copy the
delivery contract(s), select the Copy Delivery Contract check box in the Copy Purchase Contracts
(tdpur3801m000) session.
When you copy contracts, the copied contract header and the item lines are logged in the contract history
files. If the Copy Terminated Contract Lines check box is selected in the Copy Purchase Contracts
(tdpur3801m000) session, the terminated contract lines are also copied to the new contract.
22 | Infor LN Procurement | User Guide for Purchase Contracts
Additional processes
The currency of the buy-from business partner must be the same as the contract currency. If not, a
message is displayed. The buy-from business partner status must be Active when a contract is agreed
upon. A parent relation must exist between a buy-from business partner and the other business partner
roles.
Evaluating purchase contracts
If a purchase contract is used for a purchase order or a purchase schedule, you can evaluate the
purchase contract during and after the purchase order or schedule procedure. During the contract's
effectivity period, you can check if the deliveries take place as agreed in the contract. At the end of the
contract's effectivity period, you can check if the agreed quantities were met.
Note
Evaluating purchase contracts is mandatory if the Evaluate Contract before Deleting check box is
selected in the Purchase Contract Parameters (tdpur0100m300) session.
You can also view the progress of a contract line in the Purchase Contract Line - Analysis
(tdpur3513m000) session.
To evaluate contracts in the Evaluate Purchase Contracts (tdpur3420m000) session:
▪
▪
▪
The contract status must be Active
Call orders must exist for the contract
The time elapsed (%) must be more than the specified percentage
How a contract line is evaluated depends on the value of the Quantity Binding check box in the Purchase
Contract Lines (tdpur3101m000) session. This check box determines whether the Agreed Quantity
that you agreed upon with your purchase business partner is a mandatory quantity to purchase.
If the Quantity Binding check box is selected in the Purchase Contract Lines (tdpur3101m000) session,
the Evaluate Purchase Contracts (tdpur3420m000) session prints the differences between:
▪
▪
The Called Quantity and the Maximum Quantity fields in the Purchase Contract Lines
(tdpur3101m000) session.
The Called Quantity and the Minimum Quantity fields in the Purchase Contract Lines
(tdpur3101m000) session.
If the Quantity Binding check box is cleared in the Purchase Contract Lines (tdpur3101m000) session,
the Evaluate Purchase Contracts (tdpur3420m000) session prints the lines that exceed the boundaries
that you specified in the Evaluate Purchase Contracts (tdpur3420m000) session.
You can accept small negative or positive deviations regarding the quantities. The deviations are
calculated as follows in the Evaluate Purchase Contracts (tdpur3420m000) session:
(Called Quantity + Invoiced Quantity - (Agreed Quantity * Elapsed Time
Factor)) ÷ Agreed Quantity * 100%
Infor LN Procurement | User Guide for Purchase Contracts | 23
Additional processes
Example
▪
▪
▪
▪
Agreed Quantity = 100
Called + invoiced = 40
Contract duration = 10 days
Time Elapsed = 6 days
Negative Deviation = 40 - 100 * 6/10 ÷ 100 = -20%
If this percentage is greater than the allowed percentage, the contract line is printed.
Note
▪
▪
▪
▪
The Called Quantity is increased when an order or schedule is linked to a contract. The
Called Quantity is decreased again when an order/schedule line is processed in the Process
Delivered Purchase Orders (tdpur4223m000)/ Process Purchase Schedules (tdpur3223m000)
session.
The invoiced quantity is increased when linked purchase order/schedule lines are processed
in the Process Delivered Purchase Orders (tdpur4223m000)/ Process Purchase Schedules
(tdpur3223m000) session.
After a purchase contract is evaluated, the Evaluation [y/n/repeat] field is updated in the
Purchase Contract Lines (tdpur3101m000) session.
Extrapolating can produce a distorted picture if, for instance, the largest quantities are delivered
at the end of the contract period. In this case, an interim evaluation will show a backlog that
does not correspond with reality.
24 | Infor LN Procurement | User Guide for Purchase Contracts
Appendix A
Glossary
A
appropriate menu
Commands are distributed across the Views, References, and Actions menus, or displayed as buttons.
In previous LN and Web UI releases, these commands are located in the Specific menu.
central contract
A contract to which no specific contract office is linked.
cluster
In Enterprise Planning, a grouping of warehouses connected to each other by supplying relationships.
A cluster represents a geographical location that consists of one or more warehouses. Enterprise Planning
considers these warehouses as one unit for planning purposes.
company
A working environment in which you can carry out logistic or financial transactions. All the transaction
data is stored in the company's database.
Depending on the type of data that the company controls, the company is:
▪
▪
▪
A logistic company.
A financial company.
A logistic and a financial company.
In a multisite structure, some of the database tables can be unique for the company and the company
can share other database tables with other companies.
Infor LN Procurement | User Guide for Purchase Contracts | 25
Glossary
configurable item
An item that has features and options and must be configured before any activities can be performed
on it. If the configurable item is generic, a new item is created after configuration. If the item is
manufactured or purchased, the configuration is identified by item code and option list ID.
▪
▪
▪
Manufactured items with the default supply source set to Assembly and Generic items are
always configurable.
Purchased items with a purchase schedule in use can be configurable.
Configurable Purchased items can be used within Assembly Control only.
configured item
A configurable item that is configured, which means options and features are chosen for the item.
A configured item can have components that are also configured, for example, a bike with a bike light.
If a configured item is an end item, it is configured with its configurable components and stored as a
product variant.
contract price revision
A date-controlled agreement for price and discount elements on the contract line. Price revisions enable
you to have several prices over time. An active revision is valid from its effective date up to the effective
date of the next revision, or the expiry date of the contract line.
corporate purchase contract
A purchase contract line, used by multisite corporations, in which the agreements with a business partner
about an item are specified by site (warehouse). Contractual agreements that apply to the entire
corporation, such as price and quantity conditions, are specified on the contract line. Logistic agreements,
which apply only to a specific site, are specified on the contract line details. The contract (total) line
holds the aggregated quantity information of the linked contract line details.
Corporate purchase contracts are mainly used to make keen price agreements on a corporate level and
to use these prices on site level.
cumulatives (CUMs)
The year-to-date totals for quantities shipped, received, required, and invoiced.
Cumulatives are used as schedule statistics to track if its status is ahead or behind schedule compared
to the demand.
26 | Infor LN Procurement | User Guide for Purchase Contracts
Glossary
delivery contract
A list of time-phased delivery, derived from a contract and converted to purchase orders. A delivery
contract is not a real schedule, but a schedule solution to generate purchase orders in time.
Example
Contract line
Delivery contract
Purchase order (PO)
100 pieces (pcs)
2000/12/01 20 pcs
PO1 2000/12/01 20 pcs
-
2000/02/08 25 pcs
PO2 2000/02/08 25 pcs
-
2000/12/15 40 pcs
PO3 2000/12/15 40 pcs
-
2000/12/22 15 pcs
PO4 2000/12/22 15 pcs
effectivity period
The period of time defined by the effective date and expiry date in which a record is valid.
generic price list
A product variant that is generated from customer specifications can have a detailed sales price based
on the selected options. Purchase prices for generic items can also be generated. The purchase price
is used to calculate the cost price. Matrices can be defined if options exist for different product features
that have mutual relationships that influence the purchase or sales price.
logistic agreements
Conditions that must be formally agreed upon between a supplier and a customer regarding logistic
data, such as schedule messages, frozen periods, authorizations, delivery patterns, carrier, and so on.
material price
The price of a material, which can be the following:
▪
▪
The material base price, if material actual prices are not applicable (yet)
The sum of these components: material base price + material price surcharge+ material price
surcharge costs, if material actual prices are applicable
Infor LN Procurement | User Guide for Purchase Contracts | 27
Glossary
normal contract
A customer-oriented contract, agreed upon by suppliers and customers, that is used to record specific
agreements. A normal contract is usually valid for approximately one year.
A normal contract cannot be activated if another active contract exists for the same business partner in
a specific period.
purchase contract
Purchase contracts are used to register specific agreements with a buy-from business partner that
concern the delivery of specific goods.
A contract is comprised of:
▪
▪
▪
A purchase contract header with general business partner data, and optionally, a linked terms
and conditions agreement.
One or more purchase contract lines with (central) price agreements, logistic agreements,
and quantity information that apply to an item or price group.
Purchase contract line details with logistic agreements and quantity information that apply to
an item or price group for a specific site (warehouse) of a multisite corporation. Contract line
details can exist only for corporate purchase contracts.
purchase contract line
The agreement with a supplier about a certain item. A purchase contract line contains both commercial
and logistic conditions related to the supply of one item, during a period of time.
In case of a corporate purchase contract, the purchase contract line is a Total line, because it has linked
purchase contract line details.
purchase contract line detail
The agreement with a supplier about a certain item for a specific site (warehouse). A purchase contract
line detail contains quantity and logistic conditions related to the supply of one item by a specific
warehouse, during a period of time.
Contract line details can exist only for corporate purchase contracts.
purchase order
An agreement that indicates which items are delivered by a buy-from business partner according to
certain terms and conditions.
A purchase order contains:
▪
▪
A header with general order data, buy-from business partner data, payment terms, and delivery
terms
One or more order lines with more detailed information about the actual items to be delivered
28 | Infor LN Procurement | User Guide for Purchase Contracts
Glossary
purchase schedule
A timetable of planned supply of materials. Purchase schedules support long-term purchasing with
frequent deliveries and are usually backed by a purchase contract. All requirements for the same item,
buy-from business partner, ship-from business partner, purchase office, and warehouse are stored in
one schedule.
push schedule
A list of time-phased requirements, generated by a central planning system, such as Enterprise Planning
or Project, that are sent to the supplier. Push schedules contain both a forecast for the longer term and
actual orders for the short term.
A push schedule can use one of the following release types:
▪
▪
▪
Material Release: only material releases are sent. Shipping is performed based on the Firm
and Immediate requirements in the material release.
Shipping Schedule: both material releases and shipping schedules are sent. Shipping is
carried out based on the Firm and Immediate requirements in the shipping schedule. The
material release only sends forecasting data.
Shipping Schedule Only: only shipping schedules are sent. Shipping is carried out based
on the Firm and Immediate requirements in the shipping schedule. No forecasting data is
sent to the supplier.
request for quotation (RFQ)
A purchasing document that is used as a request to bidders to submit their terms, such as price, discount,
delivery time, and payment terms for delivering a (quantity of a) product.
You can send the RFQ to several bidders. A bidder can submit an RFQ response for the specified items.
You can record the responses, negotiate, and compare the prices and discounts that are offered by
different bidders.
An accepted response can be copied to a contract, an order, or a price book.
special contract
A customer-oriented contract, agreed upon by buy-from business partners and sold-to business partners
that is used to record specific agreements for specific projects. A special contract can also be a
promotional contract.
For special contracts, an overlap in effectivity periods is allowed for the same item/business partner
combination.
Infor LN Procurement | User Guide for Purchase Contracts | 29
Glossary
terms and conditions agreement
An agreement between business partners about the sale, purchase, or transfer of goods, in which you
can define detailed terms and conditions about orders, schedules, planning, logistics, invoicing, and
demand pegging, and define the search mechanism to retrieve the correct terms and conditions.
The agreement includes the following:
▪
▪
▪
▪
A header with the type of agreement and the business partner(s).
Search levels with a search priority and a selection of search attributes (fields) and linked
terms and conditions groups.
One or more lines with the values for the search levels’ search attributes.
Terms and conditions groups with detailed terms and conditions about orders, schedules,
planning, logistics, invoicing, and demand pegging for the lines.
30 | Infor LN Procurement | User Guide for Purchase Contracts
Index
appropriate menu, 25
central contract, 25
cluster, 25
company, 25
configurable item, 26
configured item, 26
contract price revision, 26
corporate purchase contract, 26
Corporate purchase contracts, 15
cumulatives (CUMs), 26
delivery contract, 27
Delivery contract, 13
effectivity period, 27
generic price list, 27
logistic agreements, 27
Logistic data, 13
material price, 27
normal contract, 28
purchase contract line, 28
purchase contract line detail, 28
Purchase contract line logistic data, 13
Purchase contract price revision, 12
purchase contract, 28
setting up delivery contracts, 13
Purchase contract
copying, 22
setting up logistic data, 13
setting up price revisions, 12
Purchase contract s
evaluating, 23
Purchase contracts
additional processes, 21
corporate, 15
specifying, 11
purchase order, 28
purchase schedule, 29
push schedule, 29
request for quotation (RFQ), 29
special contract, 29
terms and conditions agreement, 30
Was this manual useful for you? yes no
Thank you for your participation!

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

Download PDF

advertising