Global Agreement

Global Agreements More and more organizations are centralizing buying activities across a broad and sometimes diverse set of businesses. Negotiating based on an enterprises total global purchase volume results in maximum buying leverage and often lowers prices. Managing the supplier relationship in one central place can also lead to internal cost avoidance as redundant activities are eliminated. To better support a centralized buying organization, Oracle urchasing now offers support for truly !lobal "greements spanning a buyer#defined list of organizations. $sing !lobal "greements %a special type of blan&et purchase agreement', professional buyers can negotiate enterprise#wide pricing, business by business, then execute and manage agreements in one central shared services environment. The buyer maintains both visibility and control to the organizations that have access to the global agreement. Organizations then transparently access the agreement to create purchase orders that leverage pre#negotiated prices and terms. Steps to simulate Global Blanket Agreement (. )et up )uppliers and )upplier )ites for the operating units identified for centralized purchasing. The site name should be same in all the operating units for global agreements to wor&.

*. +nter the ,lan&et agreement and chec& the global box in header.

-. +nable multiple operating units for the !lobal ,lan&et "greement. ,y default it shows all the operating units that have same supplier site defined.

.. "pprove the !lobal blan&et agreement. /. The blan&et agreement has been entered in $) operating unit. Now enter the urchase order in operating unit $) operating unit distribution.

0. 1in& the urchase order to global blan&et agreement by clic&ing on catalog and select the blan&et agreement defined in $) operating unit.

2. 3hec& the blan&et agreement in Owning O4!. 5t is updated with the order 6uantity from $) operating unit distribution.

Limitation: 7ith !lobal ,lan&et agreement release cannot be created. They can only be referenced through normal purchase orders. 8ue to this reason the planning will not be able to lin& the release to these global blan&et agreements. 7hat can be done is generate the re6uisition from planning and create the O using "uto create O. On getting the o lin& it to !lobal agreements.