Contracts with Vendors

Overview

You can create and maintain contracts with vendors.
There are no direct connections between specific contracts and terms of purchase, meaning that documents related to different terms of purchase may be registered within one contract and vice versa.

Enabling Contracts with Vendors

To enable contracts with vendors:
  1. Go to Master data and settings > Purchasing (under Master data and sections).
  2. Select the Contracts with vendors checkbox.

Creating Contracts with Vendors

Creating General Contracts with Vendors

To create a contract with a vendor:
  1. Go to Purchasing > Contracts with vendors.
  2. Select a Customer, Counterparty, Company, Contact person, and other.
  3. In the Status field, select Not approved.
  4. In the Description field, enter the contract name.
  5. Select a Company account and a Seller account.
6. Click the AR/AP settings tab and select an AR/AP item:
  • Contract for debt and prepayment. Prepayment and Payment by invoice will be assigned and cleared on the Contract level.
  • Order for debt and prepayment. Prepayment will be automatically assigned and cleared on the Order level, and Payment by invoice will be assigned and cleared on the Invoice level.
  • Invoice for debt, Contract for prepayment. Prepayment will be automatically assigned and cleared on the Contract level, and Payment by invoice will be assigned and cleared on the Invoice level.
  • Invoice for debt, Order for prepayment. Prepayment will be automatically assigned and cleared on the Order level, and Payment by invoice will be assigned and cleared on the Invoice level.
  • Invoice for debt, Payment for prepayment. Prepayment and Payment by invoice will be assigned and cleared on the Invoice level.
7. Select the default Currency for AR/AP transactions under the contract.
8. If the contract currency differs from the functional currency, select the Foreign currency transaction checkbox.
9. Select the VAT taxation option:
  • If you select the Determined by the specified value checkbox, you can select a single VAT taxation option for all the transactions under the contract.
  • If you select the Determined in orders and invoices checkbox, you can disable autofilling of the default value.
10. Specify a VAT rate for payments.
11. Click the Accounting information tab and fill in the required data.
12. Click Save.

Creating Contracts with Fulfillment Schedules

  1. Go to Purchasing > Contracts with vendors.
  2. Open the required contract and click the AR/AP settings tab.
  3. Select the Contract amount is fixed checkbox and enter the contract amount.
  4. In the Order fulfillment schedule is defined by field, select Sales order / Customer invoice OR Contract with customer.
  5. Save the document.
  6. Click the Not specified hyperlink.
  7. In the Contract schedule, add a new line and fill the schedule of Payments and Shipment (delivery).
  8. Click Save.
The system automatically controls whether the information is complete by totals.

Approving Contracts with Vendors

Signing Contracts with Vendors

  1. Receive the contract from the vendor.
  2. Go to Purchasing > Contracts with vendors and open the required contract.
  3. Update the information based on the vendor's feedback and attach a signed copy of the contract.
  4. Click Save.

Activating Contracts with Customers

  1. Go to Purchasing > Contracts with vendors and open the required contract.
  2. Fill the Number and Dated fields in accordance with the hard copy.
  3. Set the Valid status.
  4. Specify a validity period.
  5. Attach the signed copy.
  6. Click Save.

Performing Contract Follow-up Activities

Initiating Follow-up Activities

  1. Go to Purchasing > Contracts with vendors and open the required contract.
  2. Generate a Duty based on the document.
  3. In the Duty field, specify a working name.
  4. Assign the task to a responsible user in the database.
  5. Set the Priority and specify a Due date.
  6. In the Subject field, describe actions to take.
  7. Click Start and close.

Completing Follow-up Activities

  1. Go to Quick menu > My Tasks.
  2. Open a Task related to the contract.
  3. In the Results field, describe the task results or the current progress.
  4. Enter the completion date.
  5. Click Completed.

Monitoring Contracts with Customers

Monitoring Order Receipts

  1. Go to Purchasing > Contracts with vendors.
  2. Open a required contract.
  3. Go to the Documents tab.
  4. Review the list of documents.
  5. Find a Purchase order.

Monitoring Contract Validity Dates

  1. Go to Purchasing > Contracts with vendors.
  2. In the Validity period field, set a filter.
  3. Review the list of Contracts.
  4. Find expiring contracts.

Requesting Contract Renewal

  1. Go to Purchasing > Contracts with vendors and open the required contract.
  2. Generate a Duty based on the document.
  3. In the Duty field, specify a working name.
  4. Assign the task to a responsible user in the database.
  5. Set the Priority and specify a Due date.
  6. In the Subject field, describe actions to take.
  7. Click Start and close.

Closing Contracts

  1. Go to Purchasing > Contracts with vendors and open the required contract.
  2. Set the Closed status.