Purchase Agreement Classification in Ax 2012 R3

If you are a business owner who uses Microsoft Dynamics AX 2012 R3, it is essential that you understand the classification of purchase agreements. This knowledge is crucial because it affects the way you manage your purchase orders, inventory, and financial transactions.

A purchase agreement is a contractual document that outlines the terms and conditions of a purchase between a buyer and a supplier. In Microsoft Dynamics AX 2012 R3, purchase agreements are classified into three different types – blanket, contract, and scheduling.

Blanket Purchase Agreements

Blanket Purchase Agreements are used when a business needs to purchase goods or services on a recurring basis. This type of agreement allows you to establish a long-term purchase agreement with a supplier. A Blanket Purchase Agreement contains information about the quantity, price, and delivery schedule of the goods or services. Once you create a Blanket Purchase Agreement, it becomes a reference for future purchase orders.

Contract Purchase Agreements

Contract Purchase Agreements are used for one-time purchases of goods or services. This type of agreement is suitable when the purchase amount is significant, and there is a need to establish the terms of the purchase in advance. A Contract Purchase Agreement contains information about the purchase quantity, unit price, and delivery terms. Once you create a Contract Purchase Agreement, it becomes a reference for the purchase orders that you create against it.

Scheduling Agreements

Scheduling Agreements are used when delivery of goods or services needs to happen at multiple dates. This type of agreement allows the buyer to plan the delivery schedule of the goods or services over a specific timeframe. A Scheduling Agreement contains information about the delivery schedule, quantity, and price for each delivery. Once you create a Scheduling Agreement, it becomes a reference for the purchase orders that you create against it.

In Conclusion

Understanding the classification of Purchase Agreements in Microsoft Dynamics AX 2012 R3 is crucial for managing your purchase orders, inventory, and financial transactions. By using the right type of agreement, you can streamline your procurement processes and improve your financial management. So, it is essential to choose the right type of purchase agreement based on your business needs.