Purchase Agreements

Hi,

I am trying to create blanket orders in AX 2012, and I understand I am supposed to be using purchase agreements to do so. I have set up a Product Quantity Commitment with lines for the items that can be purchased using the agreement.

I have tried doing this both ways. Creating a Release Order directly from the agreement, and creating a purchase order and turning it into a purchase agreement by selecting a purchase agreement ID from the general tab of the create purchase orders form.

When I confirm the purchase order, I notice the agreement’s fulfillment changes, however, there is nothing stopping me from ordering more than the agreement quantity. For example, if I create another release order for the same purchase agreement and purchase quantities more than or less than the specified quantity of the agreement, the discount is still being applied.

Why does the agreement not automatically become unusable after being completely fulfilled? Why is the discount being applied to quantities higher than the agreed quantity?

In Purchase agreements Lines> Genera Tab, enable the check box “Max is enforced”. Once you enable that, it should work as you expected.

Thank you, Santosh. That did the trick!

  • Mike

Santosh,

If you wouldn’t mind answering another question for me. How can I handle quantity break pricing with Purchase agreements? I have seen in trade agreements, there is a from and to quantity for each price as desired, but I do not see any from and to quantity fields on the purchase agreement. Is this possible?

Thanks in advance

No, It is not possible. For this purpose, you would need to still use the trade agreements. Purchase agreement is a fixed agreement which doesn’t fluctuate with the no.of items you are ordering.

Okay, thank you for the verification