Contract Purchase Agreement Creation Process in R12.2

Definition: Contract Purchase Agreements in Oracle EBS

You create contract purchase agreements with your suppliers to agree on specific terms and conditions without indicating the goods and services that you will be purchasing. You can later issue standard purchase orders referencing your contracts, and you can obstruct these purchase orders if you use encumbrance accounting.
Navigate to Purchasing Responsibility

Purchase Orders > Purchase Orders

Here you can include agreement dollar amount, Ship to and Bill to address with supplier details. Select the Global checkbox only if you are creating a Global agreement.

Standard purchase orders can only reference the contract during its effective dates. Part of the terms and conditions could include a percentage discount off list prices for all products the supplier sells or different discounts for different groups of products.
Click the Approve button and then Ok.
Once contract purchase agreements are approved, you can use it with standard purchase order per agreed amount or less than the committed amount.

Here you can mention Shipment details with need by date. You can read more about Standard Purchase Order and splitting shipment and charge accounts.

You can enter sub inventory here.
Click on the Approve button. Once the Standard Purchase order is approved, you can check the contract purchase agreement. Open purchase order in query mode and check the released amount. The dollar value displayed in Released field is the total dollar value of all standard purchase order lines referencing the contract.

This completes the explanation of the Contract Purchase Agreement in Oracle EBS R12.

Summary:

This agreement may include terms and conditions, committed amount, and an effective and expiration date.

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