Create - Defining Terms and Conditions

Define Terms And Conditions

This page allows you to define the Supplier’s shipment and payment terms and conditions. The payment terms, the mode of payment, and the details of the supplier to whom the payment has to be made, can be entered in this page. You can also specify the insurance details like insurance amount, the party that has to bear the insurance amount, for the items to be purchased.

The delivery terms such as the International Commercial Term (INCO), mode of transport, the location where the parts must be delivered and instructions regarding the packaging can also be recorded. The details specified here could be defaulted in the transactions.

Select the “Define Terms and Conditions” link at the bottom of the “Create Supplier” page.

The “Define Terms And Conditions” page appears.

The System displays the following fields:

Supplier Code	Code or identification number of the supplier
Name	Name of the supplier associated with the supplier code.
Supplier Type	The system displays “Regular” or “One time” as the type of the supplier.
Supplier Level	The system displays “LO”, “BU” or “OU” as the level of the supplier.

Enter the following in the “Shipment and Payment Terms” information tab:

INCO Term	Use the drop down list box to select the corresponding International Commercial terms to be associated with the items.
INCO Place	The INCO place is the place at which the ownership of the goods purchased is transferred. It is applicable for certain INCO terms like FOB / Ex-Works.
Pay Term	The code identifying the default payment term is entered.
	Help facility available.
Pay Mode	Use the drop down list to select the mode in which the payment is made. Example Cash, Cheques, Demand Draft, Electronic Money Transfer.
DD Charges Borne By	Use the drop-down list box to select “Supplier” or “Self”. This shows whether the demand drafts charges will be borne by you or by the supplier. (Applicable only when the Pay Mode selected is Demand Draft).
Advance Payable	Use the drop down list to select whether advance payment can be made to this supplier. (If selected as “Yes”, the same is defaulted in the transactions and the user can decide whether the same is applicable in a transaction. However, if selected as “No”, the same cannot be changed in the transactions).
Advance Tolerance%	The Percentage of the tolerance allowed for the advance amount is entered.
Auto Invoicing	User can select whether Automatic generation of invoices should be enabled or disabled. If selected as No, the user cannot change the same at the time of the transactions.
Invoice Before GR	User can select whether invoicing based on Pre-GR acknowledgement of goods received is allowed or not. If selected as “No”, the user cannot change the same at the time of the transactions.
Tax Exempt	Use the drop down list box to select “Yes” or “No” to specify whether tax is normally exempt for this supplier’s transactions.
Certificate No.	Unique identification number of the certificate, which is produced for tax exemption. This field is to be filled in only if tax exemption is made.
Material Reconciliation By	Use the drop down list to select “Period” or “Order” or “None”. This specifies whether material reconciliation for conversion subcontracts will be done periodically or order wise for this supplier.
Company Identification Agency	Rating agency, consultancy or an Institution, which assigns an identification number to an organization.
Identification No	Unique identification number associated with the company identification agency.
Supplier Invoice Mandatory	Use the drop down list to select whether the supplier’s invoice is mandatory for the transaction.
Consignment T/C Liability	Use the drop down list box to select whether the liability creation for taxes and charges associated with a consignment purchase for this vendor is normally at the time of Goods Receipt or Stock Issue.
GR Option	Use the drop-down list box to specify whether GR option is enabled or not for the Supplier. The combo is loaded with options "Yes" and "No".The system displays "Yes" by default on launch of the page.
Invoice At	Use the drop down list to select the default Organizational unit at which invoice will be created for this vendor. The user in a transaction can modify the same.
Insurance Liability	Use the drop down list box to select the insurance liability option. The values in the list box are “None”, “Us”, “Supplier”, “Supplier, Charged to Us”.
Insurance Term	Use the drop down list to select the default insurance terms associated with the supplier The user can modify the same in a transaction.

Enter the following in the “Min. Order Value Details” multiline:

Entering values in this multiline is optional

Currency	Use the drop down list box to select the currency of the supplier.
Minimum Order Value	The minimum order value of the items, which were ordered by the customer.

Click the “Define Terms and Conditions” pushbutton to specify the supplier terms and conditions.

The System saves the terms that are related to the transaction of the items.

To proceed carry out the following

Select the ”Specify Supplier Item Mapping” link at the bottom of the page to specify the list of items purchased / subcontracted. If the system parameter pertaining to purchase transactions overriding Supplier item list is set to ‘No’ the user needs to specify this information before a purchase transaction is approved.

Select the ”Specify Supplier Item Rate Mapping” link at the bottom of the page to specify the supplier’s default pricing information.

Select the ”Specify TCD Details” link at the bottom of the page to specify the Tax, Charges and Discount details.

Select the “Specify Quality Attributes” link at the bottom of the page to specify the quality attribute details pertaining to the items.

Select the ”Specify Contact Person” link at the bottom of the page to specify the contact information at each of the supplier addresses.

Select the ”Specify Pay to Supplier” link at the bottom of the page to specify the list of suppliers to whom payments can be made for orders placed on this supplier.

Select the ”Specify Supplier Calendar” link at the bottom of the page to list the holidays followed by the supplier.

Select the "Specify Pay Modes" link at the bottom of the page to specify the pay mode details of the supplier.
Select the "Specify Tax Details" link at the bottom of the page to specify the tax details of the supplier.