In NetSuite, the Purchase Contracts feature allows purchasing managers and buyers to use contracted terms, pricing, and delivery schedules when procuring materials for a company.
Enabling the Feature: To use purchase contracts, you must enable both the Purchase Orders feature and the Purchase Contracts feature. Once enabled, you can set up purchase contracts based on rates negotiated with your vendors.
Creating Purchase Contracts: You can manually create a purchase contract or generate one from an accepted Vendor RFQ Bid.
A purchase contract specifies terms and pricing, such as: Tiered discounts based on quantity price breaks.
Discounts for purchases above a set currency amount during a specific time frame.
Discounts per line, per order, or across all purchase orders applied to one contract.
The purchase contract record tracks all linked orders and items applied against the contract, and pricing is reflected accordingly.
Applying Purchase Contracts to Purchase Orders: When creating a purchase order, buyers can select a relevant purchase contract.
The chosen contract’s terms and pricing are automatically applied to the items on that order.
This allows buyers to view the tiered pricing structure and take advantage of quantity discounts when placing the order.