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Procurement Contracts give you the ability a to add clauses and conditions created by the buyer company/ The suppliers will be governed by these clauses.
Procurement Contracts also gives you the option to attach a Supplier Authored Contracts. Word Format document which you import and attach to the PO/BPA.
This is case is how you attach supplier terms and conditions
Hope this helps
Procurement contract is basically a set of rules set by a company for his suppliers....In apps, basically it will go to supplier (note to supplier) as an attachment along with the PO through mail.
Please refer below link to understand what is a procurement contract
Your another query is :
We have a case where the client has different terms and conditions with different vendors (mostly for different annual maintenance contracts).
This can be handled by different terms and conditions templates/files, but to be honest we have never tried this option before.