News & Events
Overview of Purchase Agreement in Odoo16
July 12, 2023
A purchase agreement is a legally binding contract between a buyer and a seller that outlines the terms and conditions for purchasing goods or services. It serves as a formal agreement between the parties involved and provides a framework for the transaction. When we finalize a purchase order, we can ensure a mutual agreement between the vendor and the customer regarding the purchase agreement. For that, Odoo provides a dedicated purchase agreement feature within the Purchase module for creating and managing purchase agreements. This agreement allows you to create multiple agreements with the same or different vendors, encompassing various products. These agreements can then be referenced when creating purchase orders in Odoo, facilitating a seamless integration of the agreed terms into the procurement process. So let's see how Odoo enables a user these add-ons. To access the Purchase Agreement feature in your Odoo Purchase module, you must enable the "Purchase Agreement" option within the module's Settings menu. Once activated, you will utilize the functionalities related to purchase agreements in Odoo.
Types Of Purchase AgreementsWhen you enable the Purchase Agreements feature, it provides you with two types of purchase agreements: Blanket Orders which can be found under the Orders tab in the Purchase module, and the Call for the Tender option under the Alternatives tab in a new purchase order creation window.
Calls for the tenders
- Calls for tenders enable you to solicit bids from multiple suppliers for a specific product or service. By using this option, you can initiate a competitive bidding process to obtain the best price or quality. It offers you to create and manage RFQs, compare quotations, and make informed purchase decisions.
- A Blanket Order is a type of purchase agreement where you establish a long-term contract with a supplier for the supply of goods or services. It allows you to define the terms, such as quantities, pricing, and delivery schedules, for a specific period. By accessing the "Blanket Orders" option under the "Orders" tab, you can create and manage these long-term agreements with your suppliers.