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Function documentationMaster Agreements Terms Locate this document in the navigation structure

 

A term for a master agreement refers to the conditions under which your company receives title of and responsibility for goods and services. Terms usually include conditions for payment, replenisher, maximum and minimum prices, rebates, and penalties.

On the Terms tab, you can:

  • Add and edit terms

  • Add and edit rebates

  • Add and edit penalties

  • Add and edit additional terms

Prerequisites

This tab must have been enabled in the master agreement type.

Features

Field Help for Master Agreements Terms

Field

Description

Payment Terms

Choose the Lookup icon to select the payment terms for the master agreement. Payment terms are created in   Administration   Master Data  .

Payment Terms Description

Indicates the description of the payment terms you selected. This field is read-only.

Replenishment

Select the replenisher from the dropdown list. This field indicates the assignment of responsibility for the purchase of additional products. Replenishment values are defined in   Administration   Master Data   Value List Types And Values  .

Replenisher Description

Indicates the description of the replenisher value you selected. This field is read-only.

Minimum and Limit

Field

Description

Agreement Limit

Enter the maximum monetary value represented by the master agreement.

Agreement Minimum

Enter the minimum monetary value represented by the master agreement.

Minimum Alert Offset

If agreement minimum alerts are enabled in the master agreement type, set this value to control the number of days before the end date on the agreement the alert should be created.

Alert if Actual is Within

If agreement limit alerts are enabled in the master agreement type, set the value to the percentage at which the alert should be triggered.

Alert if Forecast is Within

If agreement limit alerts are enabled in the master agreement type, set the value to the percentage at which the alert should be triggered.

Rebates

Field

Description

Add or Add as Percentage

Use these functions to add a rebate

Volume Threshold

Enter the volume that the master agreement must exceed for the purchaser to receive a rebate.

Rebate Amount

If you chose Add, type the amount of the rebate.

Amount/Percentage

If you chose Add as Percent, type the percentage of the rebate.

Alert

Indicates whether an alert will be created when the rebate volume threshold is exceeded. Agreement rebate alerts are set in the master agreement type.

Penalties

Field

Description

Add or Add as Percentage

Use these functions to add a penalty

Volume Threshold

Enter the volume that the master agreement must meet in order to avoid a penalty. If the master agreement volume falls below this number, the purchaser will pay a penalty.

Penalty Amount

If you chose Add, type the amount of the penalty.

Amount/Percentage

If you chose Add as Percentage, type the percentage of the penalty.

Alert

Indicates whether an alert will be created when the penalty volume threshold is exceeded. Agreement penalty alerts are set in the master agreement type.

Contract Expiration Alert (Days)

Enter the number of days before the contract expires that an alert will be sent. Agreement penalty alerts must be enabled in the master agreement type for this field to be editable.

Additional Terms

Field

Description

Add

Here, you can add an additional term
Field Help for Master Agreement Terms Dialog Box

The following provides help for the fields in the Master Agreement Terms dialog box, when you want to add terms.

Field

Description

Term Type

Select Standard to add a predefined term or Custom to create a new term.

Term Name

Select a standard term name from the dropdown list or type a custom term name. This is a required field.

URL

Enter an associated URL for this term.

Activities

Adding a Master Agreement Term

To add a master agreement term:

  1. On the Terms page, fill in the fields for basic information and those under Minimum and Limit. For details, see Master Agreement Line Items.

  2. Optionally, add a rebate.

  3. Optionally, add a penalty.

  4. Optionally, add an additional term.

  5. Save your changes.

You can edit a master agreement term after it is added.

Adding a Master Agreement Rebate

A rebate is an incentive for your company to purchase a specific quantity of goods or services. It is often a reduced price for a specific good or service after your company exceeds a spending or quantity threshold. Sometimes, a rebate is a refund sum of money across all purchases of a good or service, which is returned at the end of the contract.

To add a rebate:

  1. On the Terms page under Rebates, choose Add.

  2. Complete the fields for the rebate.

  3. Save your entries.

You can edit a master agreement rebate after it is added.

Adding a Master Agreement Penalty

A penalty results if your company or a supplier violates agreed-upon conditions for purchase or payment of goods and services. A penalty is usually exacted as a sum of money.

To add a penalty:

  1. On the Terms page under Penalties, choose Add.

  2. Complete the fields for the penalty.

  3. Save your entries.

You can edit a master agreement penalty after it is added.

Adding an Additional Term to a Master Agreement

  1. On the Terms page under Additional Terms, choose Add.

  2. Complete the fields in the dialog box.

  3. Choose OK.

  4. Save your entries.

You can edit an additional term for a master agreement after it is added.