Agreements

Agreements with Vendors and Distributors help to maintain accurate pricing that all parties involved.  Pricing has the ability to be changed at any time, per authorization from the appropriate users.

An Agreement is fully negotiated and any product or service purchased through the use of an active Agreement will be invoiced at the Agreement price.  Agreements encompass Agreement Terms and multiple Product Terms.  You have the ability to initiate Agreements with any Supplier or Distributor on the system. 

Vendor Agreement

A Vendor Agreement is any Agreement initiated and maintained with a Supplier on the system. Once in the agreement you have the ability to add/remove items, edit prices, and approve item prices. By going to View > Agreements > Vendor you will see the list of all agreements with multiple suppliers. Here you will see all of the items that are currently on the agreement and Approve All Terms, if necessary, when an item price gets updated by the supplier.

1. View > Agreements > Vendor Agreements > search for agreement > File > Approve All Terms. This will Approve all item terms on the screen. Click next if more items need to be Approved.

2. To update an individual item price - search for the item > click the blue Active hyperlink > set price > File Approve Product Terms.

3. To add an item to the agreement- go to the Action box on the right > Add Products > search for the item > click Save under selected items. Item will be added to agreement. Set price if item does not have price set.

4. To remove and item- search for the item > check the box on the right > Action > Remove Selection > Ok.

Note

To create a new agreement go to View > Agreements > Vendor/Distributor > File > New.

Distributor Agreement

A Distributor Agreement, like the Vendor Agreement, is any Agreement initiated and maintained with a Distributor on the system. Once you access the agreement you have the ability to add/remove items, edit prices, and approve item prices. By going to View>Agreements>Distributor you will see the list of all agreements with multiple distributors. Here you will see all of the items that are currently on the agreement and you can select Approve All Terms, if necessary, when an item price is updated by the supplier.

1. View > Agreements > Distributor Agreements > search for agreement > File > Approve All Terms. This will Approve all item terms on the screen. Click Next if more items need to be Approved.

2. To update an individual item price - search for the item > click the blue Active hyperlink > set price > File Approve Product Terms.

3. To add an item to the agreement - go to the Action box on the right > Add Products > search for the item > click Save under selected items. Item will be added to agreement. Set the price if the item does not have a price set.

4. To remove an item - search for the item > check the box on the right > Action > Remove Selection > Ok.

Note

To create a new agreement go to View > Agreements > Vendor/Distributor > File > New.

Agreement Information

• Agreement Title - What name will be given to the Agreement so it is not difficult to locate.

• Agreement Number - Enter number to make the agreement unique.

Parties

• Authorizing Buyer - Name of buyer (Ex: Any Hospitality or Cinema group)

• Selling Company - Can be any active Vendor or Distributor on the system.

• Solicit Authorizing Seller - Selected from a list of user Accounts associated with the Selling Party.

Term

• Effective Date - Date in which the Agreement will begin, no two agreements can begin on the same date.

  • If two agreements have been negotiated on the same product, the Agreement with the most recent Effective Date will always hold precedence.

• Termination Date - Date in which the Agreement will terminate, pricing on that Agreement will continue to be used until a new Agreement has been negotiated.

• Revolving Agreement - Sets the Agreement to automatically renew itself on its termination date.

• Cancellation Notice - Sets the number of days required by both parties to cancel the Agreement.

• Payment Terms - Space reserved for either party to type special terms on how payments should be handled.

• General Comments - Space reserved for either party to enter additional comments concerning the Agreement.

Product Terms on an Agreement

Product Terms specific pricing on products and product lines.  Pricing can be calculated using one of the three options listed below.

• Fixed Cost - The price per unit of a product remains at a fixed price (applies only to products)

• Percent of List - The price per unit of a product is based on a percentage of the list price of the product.

• Cost Plus - The price per unit of a product is calculated by marking up the product a percentage over the Vendor’s cost.

With each cost basis, there is minimum quantity amount required on a purchase to receive the special pricing.  You can set up multiple levels of pricing called tiered pricing.  The quantity on an order will then determine which tier of pricing will apply to that order.  The first tier is called the base level and has a minimum quantity of one.  The base level cannot be removed.

In addition to the tiered pricing setup, a volume commitment amount must be defined.  This is the amount that the Buyer promises to buy by the term date.  It is the responsibility of the parties involved to monitor this amount to make sure that the commitment is met.

Update an Item Price

On this screen, you also have the ability to update a price for an item on an agreement. The steps are similar to adding an item to an Order Guide.

1. View > Item Catalog > search for the item.

2. Access the Item Administration screen by clicking the Availability Status of a product. 

3. Located under the Vendor Agreements section. Here you will find a list of agreements depending on how many agreements the item is currently on.

4. Select the agreement you wish to update the price for > click the blue hyperlinked price > Update the price.

5. File > Approve Product Terms.