Using Blanket Agreement in Purchasing Documents

Blanket agreements are contracts with a vendor (purchasing blanket agreement) or a customer (sales blanket agreement), for the supply of items or provision of services, over a period of time, based on predefined terms and conditions. Blanket agreements act as a framework or "master contract" with selected business partners that streamlines operations, improves financial planning, and strengthens business relationships. For example, when an actual order for this business partner is needed, you simply draw from the blanket agreement to create a standard sales order or purchase order, which inherits all the pre-negotiated details.

In SAP Business One, Web client, you can manage blanket agreements by using one of these two methods:

• Items method – This method serves as an agreement to sell or buy:
  • specific items
  • with a predefined planned quantity
  • within a predefined date range, and
  • the option to set the unit price for sales or purchasing for each item.

  This method is selected by default when creating a new blanket agreement.

• Monetary method – This method serves as an agreement to sell or buy goods to reach:
  • a predefined planned amount
  • within a predefined date range, and
  • with the option to set a price list and a discount in the blanket agreement.

Each of the two methods mentioned above lets you choose one of the following provided blanket agreement types:

• General: General blanket agreements are used to track the fulfillment of terms to obtain a special bonus at year-end. For example, for selling or purchasing a certain quantity of an item or for achieving a defined turnover. This agreement type is selected by default when creating a new blanket agreement.
• Specific: Specific blanket agreements are used to track the fulfillment of terms to obtain a specific discount for individual sales or purchase transactions. They can also be used to determine a delivery schedule, for example, by defining at which intervals which quantity of goods should be delivered.

If a valid specific type blanket agreement exists with a customer or vendor, SAP Business One, Web client automatically links sales or purchasing documents to the blanket agreement. You can also manually copy the blanket agreement to the sales or purchasing document. This way the prices or the discount agreed upon with the business partners can be copied directly into the sales and purchasing documents.

You can then issue the Sales/Purchasing Blanket Agreement Fulfillment Report, which displays all relevant blanket agreements that are available for particular business partners within certain date ranges with their fulfillment %.

This lesson will focus on purchasing blanket agreements with Agreement Method: Items Method and the Agreement Type: Specific.

By using this scenario, you’ll learn how you can document items, quantities, and prices negotiated with your vendors for a certain validity period. This negotiated price will override all other types of pricing.

• Blanket agreements in SAP Business One, Web client, streamline purchasing by enabling to document predefined items, quantities, prices, and validity periods with specific vendors.
• The Items method with Specific agreement type ensures negotiated prices and quantities are automatically applied to purchasing documents.
• Fulfillment tracking allows you to monitor agreement progress, view related documents, and ensure compliance with negotiated terms.
• Blanket agreement status controls document creation, and fulfillment reports help you review and manage vendor agreements efficiently.