Purchase Agreements

The Purchase Agreements module in the Purchases plugin of AureusERP allows procurement teams to create long-term purchasing arrangements with vendors. These agreements help streamline bulk purchases, recurring orders, and negotiated pricing.

Creating a Purchase Agreement

Steps to Create a Purchase Agreement

1. Navigate to Purchase → Orders → Purchase Agreements → New Purchase Agreement as shown in the below image.

   

2. Fill out the form with the following fields:

   General Information Section

   • Vendor: Select the supplier from whom goods or services will be purchased.

   • Valid From: Start date of the agreement.

   • Valid Until: Expiry date of the agreement.

   • Buyer: Internal user responsible for this agreement.

   • Reference: Internal or vendor-specific reference for tracking the agreement.

   • Agreement Type:

     • Blanket Orders: Used when committing to buy specific quantities over a period.
     • Purchase Template: Used for templated orders with predefined products.

       🔹 If Purchase Template is selected, Valid From and Valid Until fields are hidden as they do not apply.

   • Company: Select the company issuing the agreement (useful in multi-company setups).

   • Currency: Choose the currency in which the agreement is defined (e.g., USD, INR).

   

Product Section

This section allows you to list items included in the agreement:

• Product: Choose the product from the product catalog.
• Quantity: Enter the quantity covered under this agreement.
• Unit: Select the unit of measure such as Dozens, Units, etc.
• Unit Price: Enter the agreed-upon unit price with the vendor.

🔹 You can add multiple products to the agreement as needed.

After Creating a Purchase Agreement

Upon clicking Create, the system redirects to the Edit Purchase Agreement page. The agreement will be in Draft status.

• Confirm:

  • Finalizes the agreement.
  • Status changes from Draft to Confirmed and Posted.
  • Fields become read-only.
  • The Confirm button changes to Close.

• Close: Marks the agreement as completed or no longer in use.

• Cancel: Voids the agreement.

• Print: Generates a print-friendly version of the agreement.

• Delete: Permanently removes the agreement.

Use Case

Purchase agreements are useful for:

• Locking in prices with vendors for a fixed period.
• Reducing repetitive tasks by reusing templates.
• Managing large-scale or long-term purchases.
• Maintaining a record of vendor commitments and terms.

Summary

This guide detailed the process of creating and managing Purchase Agreements in the Purchases module of AureusERP. You learned how to fill out agreement details, add products, confirm agreements, and manage their lifecycle. Proper use of purchase agreements can lead to better vendor relationships and streamlined procurement processes.