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<ManualTopic ID="/baanerp/td/onlinemanual/000067" xml:lang="en">
   <Header>
      <Title>Purchase contracts</Title>
      <Keyword type="header" order="d1e1285868">
         <Level1>purchase contract</Level1>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>Purchase contracts are used to register specific agreements with
		a buy-from business partner that concern the delivery of specific goods.</Paragraph>
      <List>
         <ListIntro>These agreements can be registered at the following
		  levels:</ListIntro>
         <ListItemHead>Purchase contract lines</ListItemHead>
         <ListItem>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. Apart from specifying an <Link href="/baanerp/td/glossary/glossary#EffectPeriod_td" role="glossary">effective period</Link>, you can
		  also indicate whether the minimum quantity to be purchased is
		  binding.</ListItem>
         <ListItemHead>Terms and conditions agreements</ListItemHead>
         <ListItem>In terms and conditions agreements, detailed terms and
		  conditions regarding orders, planning, logistics, invoicing, allocation and
		  hard pegging regarding the sale, purchase, or transfer of goods, are
		  registered. A purchase terms and conditions agreement must be linked to a
		  purchase contract before you can use it.</ListItem>
      </List>
   </AimSection>
   <GeneralSection>
      <List>
         <ListTitle>Contract types</ListTitle>
         <ListIntro>You can create the following contract types:</ListIntro>
         <ListItem>
            <Link href="/baanerp/td/glossary/glossary#NormalContra_td" role="glossary"
                  Update="No">Normal contracts</Link>
         </ListItem>
         <ListItem>
            <Link href="/baanerp/td/glossary/glossary#SpeciaContra_td" role="glossary">Special contracts</Link>
         </ListItem>
      </List>
      <Paragraph>For each purchase business partner, you can close multiple
		special contracts in one period. In a specific period you cannot define more
		than one normal contract per item or price group for a buy-from business
		partner.</Paragraph>
      <Paragraph>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. If you use <Link href="/baanerp/td/glossary/glossary#000000000000011" role="glossary">purchase schedules</Link>, you can
		also use purchase contracts to retrieve approved purchase business partners.
		Purchase schedules and terms and conditions agreements can only be linked to
		normal contracts and not to special contracts.</Paragraph>
      <List>
         <ListTitle>Central contracts</ListTitle>
         <ListIntro>In a multicompany structure, you can define one <Link href="/baanerp/td/glossary/glossary#000390" role="glossary">central contract</Link> that can be used by various purchase offices from different
		  logistic companies. The following are applicable to these
		  contracts:</ListIntro>
         <ListItem>The central purchase office maintains the purchase contract
		  and purchase pricing.</ListItem>
         <ListItem>Each separate logistic company (site) purchases goods directly
		  from suppliers, handles receipts, and pays invoices.</ListItem>
         <ListItem>The local purchase orders are based on the conditions, prices,
		  and discounts laid down in the central contract.</ListItem>
         <ListItem>The local companies' purchased quantities are aggregated to the
		  central contract.</ListItem>
         <ListItem>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.</ListItem>
         <ListItem>LN records the supplier performance information in the local companies that issue
		  the purchase orders.</ListItem>
      </List>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>Before you can use central contracts, the <Link href="/baanerp/tc/glossary/glossary#Company_tc" role="glossary">companies</Link> must share the contract tables by means of
		  logical table linking or by replication.</Paragraph>
         <List>
            <ListIntro>For more information, refer to the following user's
			 guides:</ListIntro>
            <ListItem>
               <DocRef Update="No">User's Guide for Multicompany Structures
			 (U9504 US)</DocRef>
            </ListItem>
            <ListItem>
               <DocRef Update="No">User's Guide for Multicompany Table
			 Sharing (U9505 US)</DocRef>
            </ListItem>
         </List>
      </Note>
      <GeneralSection>
         <SectionTitle>Purchase contract procedure</SectionTitle>
         <Keyword type="section" order="d1e1285948">
            <Level1>Purchase contract</Level1>
            <Level2>procedure</Level2>
         </Keyword>
         <ProcedureSection>
            <ProcIntro>
               <Paragraph>To record the agreements that you made with a buy-from
				business partner, take the following steps:</Paragraph>
            </ProcIntro>
            <Steps>
               <Step>
                  <StepTitle>
                     <GUIRef href="/baanerp/td/pur/tdpur3600m000" role="session">Purchase Contract - Lines (tdpur3600m000)</GUIRef>
                  </StepTitle>
                  <List>
                     <ListIntro>Use this session to define the following:</ListIntro>
                     <ListItemHead>Purchase contract header</ListItemHead>
                     <ListItem>Define the general data for a purchase contract header.
					 The information to be defined is mainly related to the purchase business
					 partner to whom the contract relates. On the contract header, you can also link
					 a <Link href="/baanerp/tc/glossary/glossary#000500" role="glossary" Update="No">terms and conditions agreement</Link>. <List>
                           <ListIntro>The terms and conditions agreement can be linked
						  as follows in this session:</ListIntro>
                           <ListItem>Manually, by selecting an agreement from the <GUIRef href="/baanerp/tc/trm/tctrm1100m000" role="session">Terms and Conditions (tctrm1100m000)</GUIRef> session.</ListItem>
                           <ListItem>By generating an agreement from a template, which
						  is automatically linked to the contract header. Click <GUIRef href="/baanerp/td/pur/tdpur3600m000#create.trms.from.template" role="command">Generate Terms and Conditions from Template</GUIRef> on the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu to start
						  the <Link href="/baanerp/tc/trm/tctrm2200m000" role="session">Generate Terms and Conditions from Template (tctrm2200m000)</Link> session.</ListItem>
                        </List> Contract header data refers to the <GUIRef href="/baanerp/td/pur/tdpur3100m000" role="session">Purchase Contracts (tdpur3100m000)</GUIRef> session.</ListItem>
                     <ListItemHead>Purchase contract lines</ListItemHead>
                     <ListItem>Define <Link href="/baanerp/td/glossary/glossary#PuCoLines_td" role="glossary">purchase contract lines</Link>, which include the agreements with a purchase business partner
					 about a certain item during a period of time. Contract line data refers to the <GUIRef href="/baanerp/td/pur/tdpur3101m000" role="session">Purchase Contract Lines (tdpur3101m000)</GUIRef> session.</ListItem>
                  </List>
                  <List>
                     <ListIntro>The following can be linked to a contract:</ListIntro>
                     <ListItem>Both a terms and conditions agreement and contract
					 lines.</ListItem>
                     <ListItem>Only a terms and conditions agreement and no contract
					 lines.</ListItem>
                     <ListItem>Only contract lines and no terms and conditions
					 agreement.</ListItem>
                  </List>
                  <Paragraph>For more information, refer to <Link href="/baanerp/tc/onlinemanual/000500" role="manual">Overview of terms and conditions</Link>.</Paragraph>
               </Step>
               <Step>
                  <StepTitle>
                     <GUIRef href="/baanerp/td/pur/tdpur3103m000" role="session">Purchase Contract Price Revisions (tdpur3103m000)</GUIRef>
                  </StepTitle>
                  <Paragraph>Use the <Link href="/baanerp/td/pur/tdpur3103m000" role="session">Purchase Contract Price Revisions (tdpur3103m000)</Link> session to record prices and discounts
				  for the purchase contract line in a <Link href="/baanerp/td/glossary/glossary#000332" role="glossary">purchase contract price revision</Link>.</Paragraph>
                  <Paragraph>However, If the contract line item is a <Link href="/baanerp/tc/glossary/glossary#000440" role="glossary">configurable item</Link>, and the <Link href="/baanerp/td/pur/tdpur3101m000#tdpur301.obpr" role="formfield">Option Based Pricing</Link> check box is selected in the <GUIRef href="/baanerp/td/pur/tdpur3101m000" role="session">Purchase Contract Lines (tdpur3101m000)</GUIRef> session, item prices are retrieved from the <Link href="/baanerp/ti/glossary/glossary#100008" role="glossary">generic price list</Link> in <GUIRef href="/baanerp/ti" role="package">Manufacturing</GUIRef> and not from the <GUIRef href="/baanerp/td/pur/tdpur3103m000" role="session">Purchase Contract Price Revisions (tdpur3103m000)</GUIRef> session.</Paragraph>
                  <Paragraph>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.</Paragraph>
                  <List>
                     <ListIntro>For more information, refer to:</ListIntro>
                     <ListItem>
                        <Link href="/baanerp/td/onlinemanual/000340" role="manual">To set up purchase contract price revisions</Link>
                     </ListItem>
                     <ListItem>
                        <Link href="/baanerp/td/onlinemanual/000344" role="manual">To link discount schedule(s) to purchase contract price revision</Link>
                     </ListItem>
                     <ListItem>
                        <Link href="/baanerp/td/onlinemanual/000310" role="manual">Configured items on purchase schedules</Link>
                     </ListItem>
                     <ListItem>
                        <Link href="/baanerp/td/onlinemanual/000381" role="manual">Price retrieval</Link>
                     </ListItem>
                     <ListItem>
                        <Link href="/baanerp/td/onlinemanual/000382" role="manual">Discount retrieval</Link>
                     </ListItem>
                  </List>
               </Step>
               <Step>
                  <StepTitle>
                     <GUIRef href="/baanerp/td/pur/tdpur3102m000" role="session">Purchase Contract Line Logistic Data (tdpur3102m000)</GUIRef>
                  </StepTitle>
                  <Paragraph>Use the <GUIRef href="/baanerp/td/pur/tdpur3102m000" role="session">Purchase Contract Line Logistic Data (tdpur3102m000)</GUIRef> session if you want purchase
				  schedules with external business partners to be linked to the contract line. If
				  you only use purchase schedules with internal business partners, you need not
				  define a contract. Therefore, the <GUIRef href="/baanerp/td/pur/tdpur3102m000" role="session">Purchase Contract Line Logistic Data (tdpur3102m000)</GUIRef> session is not a mandatory session
				  in the purchase contract procedure.</Paragraph>
                  <Paragraph>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 define logistic data, you cannot create a purchase schedule
				  for an external business partner.</Paragraph>
                  <Paragraph>For more information, refer to <Link href="/baanerp/td/onlinemanual/000345" role="manual">To set up contract line logistic data</Link>.</Paragraph>
               </Step>
               <Step>
                  <StepTitle>
                     <GUIRef href="/baanerp/td/pur/tdpur3104m000" role="session">Delivery Contract (tdpur3104m000)</GUIRef>
                  </StepTitle>
                  <Paragraph>If you define a contract and you already know the
				  time-phased delivery details, in the <GUIRef href="/baanerp/td/pur/tdpur3104m000" role="session">Delivery Contract (tdpur3104m000)</GUIRef> session, you can create a <Link href="/baanerp/td/glossary/glossary#000333" role="glossary">delivery contract</Link> instead of
				  a purchase schedule. A delivery contract is not a real schedule, but a schedule
				  solution to generate purchase orders in time.</Paragraph>
                  <Paragraph>For more information, refer to <Link href="/baanerp/td/onlinemanual/000341" role="manual">To set up a delivery contract</Link>.</Paragraph>
               </Step>
            </Steps>
         </ProcedureSection>
         <Note>
            <SectionTitle>Note</SectionTitle>
            <List>
               <ListItem>LN automatically links <Link href="/baanerp/td/glossary/glossary#PurchaOrders_td" role="glossary"
                        Update="No">purchase orders</Link> and <Link href="/baanerp/td/glossary/glossary#000000000000011" role="glossary">purchase schedules</Link> to
				contracts with the <GUIRef href="/baanerp/tc/domains/icap#active" role="option">Active</GUIRef> status, if available. When a purchase order is
				created, LN searches
				for the price and discounts on special contracts and then on normal contracts.
				If more special contracts are valid for the buy-from business
				partner/item(group)/date, a selection screen appears from which you must select
				a contract. When a purchase schedule is created, LN automatically links
				a normal contract to the purchase schedule. However, in the <GUIRef href="/baanerp/td/pur/tdpur3110m000" role="session">Purchase Schedules (tdpur3110m000)</GUIRef> session, you can unlink the normal contract and link a
				special contract to the purchase schedule.</ListItem>
               <ListItem>To retrieve terms and conditions from an active contract
				for an order line, the contract need not be linked to the order line. As a
				result, the contract number is only filled on the order line if an active
				contract line is linked to the order line. For more information, refer to <Link href="/baanerp/tc/onlinemanual/000509" role="manual">To retrieve terms and conditions</Link>.</ListItem>
            </List>
         </Note>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Purchase contract - additional processes</SectionTitle>
         <Keyword type="section" order="d1e1286135">
            <Level1>Purchase contract</Level1>
            <Level2>additional processes</Level2>
         </Keyword>
         <List>
            <ListIntro>You can:</ListIntro>
            <ListItem>Print contract acknowledgements to send to the buy-from
			 business partner in the <Link href="/baanerp/td/pur/tdpur3405m000" role="session">Print Purchase Contract Acknowledgments (tdpur3405m000)</Link> session.</ListItem>
            <ListItem>Copy one purchase contract to another in the <Link href="/baanerp/td/pur/tdpur3801m000" role="session">Copy Purchase Contracts (tdpur3801m000)</Link> session.</ListItem>
            <ListItem>Copy quotations to a purchase contract in the <Link href="/baanerp/td/pur/tdpur1202m000" role="session">Convert Quotations to Contracts/Orders/Price Books (tdpur1202m000)</Link> session.</ListItem>
            <ListItem>Create <Link href="/baanerp/td/glossary/glossary#RequesForQuo_td" role="glossary"
                     Update="No">requests for quotations</Link> based on purchase contracts in the <Link href="/baanerp/td/pur/tdpur3201m000" role="session">Duplicate Contract Lines to RFQs (tdpur3201m000)</Link> session.</ListItem>
            <ListItem>Check whether the agreed quantities are met at the end of a
			 contract's effective period in the <Link href="/baanerp/td/pur/tdpur3420m000" role="session">Evaluate Purchase Contracts (tdpur3420m000)</Link> 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.</ListItem>
            <ListItem>Send a letter to inform the purchase business partner about
			 the closure/expiration of the contract in the <Link href="/baanerp/td/pur/tdpur3406m000" role="session">Print Purchase Contract Termination Letters (tdpur3406m000)</Link> session.</ListItem>
            <ListItem>Terminate or delete purchase contracts that are no longer
			 valid, or that have ended early in the <Link href="/baanerp/td/pur/tdpur3203m000" role="session">Delete/Terminate Purchase Contracts (tdpur3203m000)</Link> session.</ListItem>
         </List>
      </GeneralSection>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000500" role="manual">Overview of terms and conditions</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000340" role="manual">To set up purchase contract price revisions</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000345" role="manual">To set up contract line logistic data</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000341" role="manual">To set up a delivery contract</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000068" role="manual">To copy purchase contracts</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000010" role="manual">Overview of purchase schedule handling</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000310" role="manual">Configured items on purchase schedules</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000380" role="manual">Companies - setup</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>