You use the Purchase Contracts application to maintain
purchase contracts with outside vendors. On the contract, you can
specify items or services provided and their costs, shipping and handling,
expected delivery times, financial terms, and vendor information.
You can create the following types of purchase contracts:
- Blanket contract - A blanket contract is an agreement to spend
a predetermined amount with the specified vendor over a period of
time.
- Price contract - A price contract specifies that items or services
purchased from the specified vendor over a period of time are provided
at an agreed-upon price.
- Purchase contract - A purchase contract is an agreement to purchase
items or services at an agreed-upon price with a vendor. To create
this type of contract, you must have a purchase order that does not
specify a maximum amount.
Before you can approve a purchase contract, you must have at least
one authorized site.