Purchase Agreements in Odoo 15
Odoo Purchase agreements are one of the important features in the purchase module of odoo15. These documents contain certain rules and regulations regarding the procurement of products. These are the agreements between customers and suppliers.
Odoo Purchase agreements are classified into two types.
❖Call for tender
To enable purchase agreements, go to configuration and then choose the type of Odoo Purchase Agreement. Then we can see a window like this selection of the required agreement type is possible here. For example, if we select call for tender as the agreement type, then see below there are many options associated with this.
What do you mean by the call for tender?
Call for tender is nothing, but if we want to make a purchase, we have to Create RFQ(request for quotation). We are already aware of that. So different RFQ's are sent to different vendors with different prices for the same product. After receiving RFQ's from the vendors, they became ready to send the quotation regarding the suitable price, quantity, etc., of the product. So these quotations are received by the customer. They have the right to evaluate all those quotations and select the most suitable quotation which satisfies their pricing.
So here there are many fields: ➔Agreement type ➔Agreement selection type ➔ Select only one RFQ(exclusive) ➔ Select multiple RFQ(non-exclusive)
1. Select only one RFQ(exclusive)
This allows only selecting one RFQ and canceling all other quotations which are not suitable for them.
2. Select Multiple RFQ's (non-exclusive)
This helps to select multiple RFQ's from the vendor
Creating Odoo Purchase Agreements:
A purchase agreement is an important factor in the purchase order. When a customer wants to purchase an item or items from a vendor or different vendors, sending a request for quotation is the first step. It means a customer is requesting vendors about the details of the product, mainly price. After receiving requests from customers, vendors sent quotations. After deciding the most suitable price or selecting the quotation, it means they are ready to receive products. So the purchase agreements have to be created in order to clarify all the terms and conditions related to the transaction.
For example, here, we will generate a new purchase agreement .choose the agreement type as a call for tender.
Then fill out all the required fields. We can either fill the purchase agreement from Request for quotations (RFQ) itself. Here, create, for example, two RFQ's and send them to two different vendors. Then select one of the quotations suitable. The other one cancelled.
This is the second quotation cancelled.
Here take a look at the top two entries of the list. Mitchell Admin is the purchasing representative. He sent RFQ's to both Azure interior and BE company COA. The quotation by BE company COA is accepted, and the Azure interior is cancelled.
The next purchase agreement type is Blanket order.
A blanket order is another one of the important types of a purchase agreement. In this type, the customer can make a repetitive purchase of a single product from a particular vendor over a period of time. So multiple request for quotations (RFQ) are generated for a single vendor for purchasing a bulk quantity of product.
Here two Request for quotation (RFQ's) are sent to a single vendor for similar products. A blanket order is a contract, so it includes some conditions.
1. Quantity of the product which is to be delivered in the purchase order.
2. Date at which the customer must take the total quantity of the product.
3. Price of the products.
4. Lead time.
When a new RFQ is created, repeat this process, i.e., creating RFQ for each release. An important point to note is changing the quantity of the product for each RFQ. Finally, when all of the products are delivered and paid, click on validate and then click on done.
Importance of Odoo purchase agreements:
Purchase agreement's one of the importance is that it is mainly created to protect both the parties, i.e., buyer and seller. This is particularly used when a particular company or companies are dealing with more complicated transactions. This agreement is signed before the delivery of goods and payment. After signing, both the parties can be engaged in further transactions like delivery of goods and payment, etc.