PO's not picking up Agreement Pricing

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P Csornok
New Member
Posts: 2
New Member
    We have two agreements set up for a vendor as our LUM and BULK pricing.  The same vendor number is used in both with the difference of the LUM having a Purchase From Location identified and the BULK not having one identified(blank).

    What we want to happen is...
        - If a PO is created with the Vendor Number and Purchase From Location matching the LUM, to grab that price. (this works)
        - If a PO is created with the Vendor Number matching, but the Purchase From Location different or blank, that it grabs the BULK agreement pricing. (not working)

    We seem to be having a problem setting this up.  The PO's are not pulling the pricing from the BULK with a blank Purchase From in the agreement while they have a Purchase From identified.

    I would prefer not to have to update six different agreements (one for each of our coded Purchase From Locations) everytime the Vendor has a price change.

    Does anyone know how to get this to work?

    Thanks in Advance

    Paul
    (Lawson 9.0.1)
    Red
    Veteran Member
    Posts: 87
    Veteran Member
      P,
      You have a few options:
      1) You can drive the agreement utilization by Participants (Lawson PO25.3). If you are fortunate, the IC From Locations order in different and consistent UOMs. If so, you could define each From Company/From Location to use a specific agreement. If you are less fortunate, you can still use the participants, but will need to define it at the Requesting Location. It works the same but it can be MUCH more tedious.

      2) You can also drive the agreement utilization drive by the UOM. Assuming your UOMs are discrete between your agreements (EACH on the LUM/JIT agreement and BOX/CASE on your bulk agreement), as long as the requesting document is populating the appropriate UOM (from a Par, from a Template, or manually entered by the Requester), the agreement with that UOM will be referenced. In this case, your From Locations would need to be Participants to both/all agreements.

      From a maintenance perspective, related to the second option, I would look at creating two or three agreements. You could put all of your items on one agreement and manage the exceptions on a second agreement. In the three agreement-model, you would build a common agreement for items only a single UOM for the item, and build LUM- and Bulk-specific agreements for the items you need to manage accordingly. Maintaining two agreements with identical sets of items, where some of those items are identical part-number/UOM/Unit Cost, is not going to do anything for you; Lawson would only pull from one agreement in that situation (the one with the lower Vendor Agreement Reference).

      The first option is more proscriptive and regulating, the second option allows for some flexibility, even within the same Requesting Location.

      Hope that helps,
      Red
      Learn from the Past. Prepare for the Future. Act in the Present.
      JonA
      Veteran Member
      Posts: 1162
      Veteran Member
        The vendor purchase from is never a driver. Lawson will always pick the lowest cost for the participants if an item is on multiple agreements at the same UOM regardless of whether there's a purchase from on the agreement or on the PO. I like Red's solutions.
        Jon Athey - Sr. Supply Chain Analyst - Materials Management - MyMichigan Health
        P Csornok
        New Member
        Posts: 2
        New Member
          Thanks!

          Paul
          Scott Perrier
          Veteran Member
          Posts: 39
          Veteran Member
            I agree with red's solutions. We are setup in a similar fashion so we can take advantage of different freight terms on items. We add another layer on for quotes and catalog prices with company as the participant for the same items. So an item always has a price; 1) when the main contract expires 2) add a new requesting location. We use the contract priority so lawson grabs the cheapest price for a requesting location by priority. this also allows for tier pricing. so for us, a given item can have 5 diff contract types: Preferred(best $ for Most requesting location) , several Tier prices by estimated volume usage, local contracts, GPO price, & Catalog price.
            Kat V
            Veteran Member
            Posts: 1020
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              Where do you set priority? PO25?
              Mike Bernhard
              Veteran Member
              Posts: 101
              Veteran Member
                Yes - you will set the priority for your supply contracts in PO25.1 on the HEADER TYPE SPECIFIC tab
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