Blanket Agreement

Blanket agreements are long-term arrangements between a purchasing organization and a vendor, or a sales organization and a customer, for the supply of items or provision of services over a period based on predefined terms and conditions. Blanket agreements can be used as a basis for expected revenue forecasts and capacity planning. If a valid blanket agreement exists with a customer or vendor, SAP Business One automatically links sales and purchasing documents to the blanket agreement. This way, the prices agreed upon with the business partners can be copied directly into the sales and purchasing documents.

 

 

In SAP Business One, you can have two types of blanket agreements:

·       General blanket agreements: Are used to track fulfilment of terms to obtain a special bonus at year end, for example, for selling or purchasing a certain quantity of an item or for achieving a defined turnover.

·       Specific blanket agreements: Are used to track fulfilment of terms to obtain a special discount for the individual sales or purchasing transaction. They are also used to determine a delivery schedule, for example, by defining at which intervals which quantity of goods should be delivered.

 

Blanket Agreements can be set up in different ways, an example for general blanket agreements is to buy or sell a defined quantity of goods and receive a value credit memo. In this scenario you create a blanket agreement for the business partner, specifying the number of items you plan to buy or sell. On the other hand, an apt example for specific blanket agreements is to generate a specific turnover with the business partner and buy or sell goods at a defined price. This blanket agreement calls for the goods to be provided at a certain date or time, at an agreed upon quantity.