Adding Vendor Contracts

You can create vendor contracts through the (EV) Vendor Contract Cost screen. In the (EV) screen, you can add items to a vendor contract individually or you can mass add groups of items.

 

The [A] Add action code lets you create a contract or add individual items to an existing contract.

 

You can create a new contract or add groups of items to an existing contract with the [M] Mass Add action code. When mass adding items, you specify a range of items to add to the contract.

 

When creating a vendor contract or adding items to an existing contract, you can set the contract price and the effective dates for the contract.

 

You can also create an economic buy contract through the (EV) screen. Economic buy contracts are vendor contracts that allow you to buy items using quantity break pricing. For example, the vendor charges you less per item when you buy 24 items than when you buy 12 items.

 

Using economic buy contracts, you can take advantage of quantity-driven pricing. When you create a purchase order in the Purchase Order Entry window, you can see the available quantity breaks for the items you are purchasing and choose the quantity break you want to utilize.

 

You must set up economic buy contracts in the (EV) screen before you can utilize these contracts. To do so, you create a vendor contract in the (EV) screen and add the item one time for each quantity break. For example, if you can buy pens in quantities of 12, 24, 48, and 60, and each quantity has a different price, you would add the pens to the contract four times, once for each quantity break.

 

You can use these economic buy contracts using manual purchase order entry or the short-buy process in the Purchase Order Entry window.

 

You specify the default economic buy contracts for your vendors in the Vendor window.