Terms of Purchase

Overview

Terms of purchase stipulate overall rules of partnership with your vendors: prices of goods shipped, payment terms (prepayment or credit), possible discounts, and other. There are no direct connections between specific contracts and terms of purchase, meaning that documents related to different terms can be registered within one contract and vice versa. You can disable terms of purchase and keep records only by contracts or select to use terms without contracts.

Enabling Terms of Purchase

To enable terms of purchase:
  1. Go to Master data and settings > Purchasing (under Master data and sections).
  2. Select the Terms of purchase checkbox.

Creating Terms of Purchase

To create terms of purchase:
  1. Go to Purchasing > Terms of purchase.
  2. Click Create.
  3. On the Main tab, set the Not approved status.
  4. In the Description field, enter the working name.
  5. Specify the Vendor.
  6. In the Transaction field, select the required transaction. For example, Purchase from vendor.
  7. Select a Company.
8. On the Purchase conditions tab, select whether you are going to use contracts for this customer:
  • If you are going to use contracts, select the Specify a contract, AR/AP accounting is determined in the contract checkbox.
  • If you are not going to use contracts, select the Contracts are not used, payment terms: checkbox and fill in the required data.
9. If required, set Payment milestones.
10. Specify a Warehouse you want to receive the goods to.
11. Specify the Lead time and Delivery in days.
12. If applicable, specify the Minimum order amount.
13. Select a Currency.
14. If the price includes VAT, select the Price includes VAT checkbox.
15. Select the Vendor price type checkbox and an applicable price type.
16. Click Save and close.

Approving Terms of Purchase

Starting Approval Process

To approve terms of purchase:
  1. Open the required terms of purchase.
  2. Click Generate > Duty.
  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.

Providing Feedback During Approval Process

To provide feedback during the approval process:
  1. Go to Quick menu > My Tasks.
  2. Find a Task related to the approval process and open it.
  3. Enter a Start date.
  4. Review the task details and take the necessary actions.
  5. In the Results field, enter your feedback.
  6. Enter the Date of completion.
  7. Click Approve or Reject.

Activating Terms of Purchase

  1. Open the required terms of purchase.
  2. Set the Valid status.
  3. Specify a validity period.
  4. Attach the signed copy if any.
  5. Click Save.

Requesting Terms of Purchase Renewal

  1. Open the required terms of purchase.
  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 Terms of Purchase

  1. Go to Purchasing > Terms of purchase and open the required terms.
  2. Set the Closed status.