Purchase: Orders: Purchase Agreements

Purpose

A purchase agreement is a contract between the buyer and the seller that outlines the pricing, terms, and conditions relating to the sale of goods. When creating a Purchase Agreement from the Purchase app, you are making a record of the agreements a vendor has made with you. This will also allow you to track the purchases made from this agreement.

You learned about the different Purchase Agreement Types in the Configuration and Settings section. Now it's time to put those to work!

This document will cover how to create and manage a Purchase Agreement in the Odoo 13 Purchase application. You'll also learn how to create an RFQ from a purchase agreement.

Process

To get started, navigate to the Purchase app.

 

Creating a Purchase Agreement

Navigate to Orders > Purchase Agreements from the top menu. Once there, click the Create button. You'll see a form with the following fields:

  • Purchase Representative: Select the contact responsible for this purchase agreement. By default, this will be your name.

  • Agreement Type: Select the Purchase Agreement Type that applies.

  • Vendor: Select the vendor you wish to purchase from.

  • Agreement Deadline: Enter the date in which this offer is no longer valid.

  • Ordering Date: Enter the anticipated order date.

  • Delivery Date: Enter the anticipated delivery date.

  • Source Document: If applicable, enter an order reference number (e.g. Purchase Order number).

Products Tab

  • Product: Enter the product(s) you wish to purchase. If the product has variants, you'll be prompted to select the quantity of each.

  • Quantity: Select the quantity of the product you wish to purchase.

  • Ordered Quantity: This indicates the number of products already purchased based on this agreement and uses he historical data in Odoo. For this reason, you will not be able to edit this field.

  • UoM: This field auto-populate but may be edited.

  • Unit Price: Enter the price per unit.

Terms and Conditions: Add any terms and conditions that apply to this purchase agreement.

When complete, click Confirm to save the Purchase Agreement. 

Agreement Types

It's important to understand what happens when selecting the type of agreement you'll be using.

  • Blanket Order: A Blanket Order allows multiple delivery dates over a period of time. The pricing and terms are set within the Purchase Agreement and will apply to all RFQs created from the initial agreement.

  • Call for Tender: A Call for Tender allows you to request pricing offers from multiple vendors. Depending on the configuration of your Call for Tender, you can select one exclusive offer or several. 


Call for Tenders: Selecting an Offer

To see the RFQs on your Call for Tenders, go to the  Orders >Purchase Agreements, select the applicable Purchase Agreement, then click the RFQs/Orders Smart Button.


This will give you a list of the vendor offers received based off of this Purchase Agreement. Evaluate all of your offers and click the one you'd like to confirm.


This will open the RFQ where you can then click the Confirm Order button.

If your Call for Tenders is configured to allow multiple RFQ selections, then you can go back and confirm orders on other RFQs. Otherwise, all other RFQs based on this Purchase Agreement will be automatically canceled.

At this point, you're ready to create a bill and pay the vendor, or receive products upon delivery, depending on the terms you have with that particular vendor.


Blanket Orders: Creating RFQs from Your Purchase Agreement

To create an RFQ from a Blanket Order, go to Orders > Purchase Agreement and select the appropriate Purchase Agreement. Once there, click the New Quotation button. You can then follow the instructions in the Request for Quotations section.

From this same Purchase Agreement, yo can view the Requests for Quotation and Orders based on it by clicking the   RFQ/Orders on the top right of the record.


Purchase Agreement Status

Once the terms of the Purchase Agreement have been satisfied, you can manually close the agreement by clicking the Close button.

Remember, when a Call for Tenders agreement has the Exclusive setting enabled, the Purchase Agreement will close automatically after an offer is selected, and the order is confirmed.


Once closed, you'll note the status change, and the Purchase Agreement can no longer be added to new RFQs.

Good to Know!

Creating a Request for Quotation that uses a specific Purchase Agreement can also be accomplished through the Orders > Purchase Agreements menu. Simply select your Purchase Agreement from the corresponding dropdown.