Purchase Agreements

Purchase agreements define longer-term pricing, quantities, and spending ceilings with a supplier.

Workflow

Draft -> Active -> Released to draft POs
      -> Closed / Expired / Cancelled

Creating an Agreement

1. Go to Agreements -> Create.
2. Select supplier, title, terms, validity dates, ceiling amount, and currency.
3. Add line descriptions, unit of measure, committed quantity, unit price, and line ceiling amount.
4. Save as Draft.

Activating and Releasing

1. Activate the agreement when it is ready for operational use.
2. Open the agreement and click Release to PO.
3. Select lines and quantities.
4. SikaBooks creates a draft PO linked to the agreement release.
5. The PO still requires approval before it can be sent or received.

Draft or Active agreements can issue releases while capacity remains. The recommended operating control is to activate the agreement before routine releases, but the current workspace allows a draft agreement to release if the user has release permission and the agreement still has remaining quantity or ceiling capacity.