Wednesday, 1 July 2015

Contract Purchase Agreement Creation Process in oracle apps

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 encumber 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 Approve button and then Ok.
  • Once contract purchase agreements is approved you can use it with standard purchase order per agreed amount or less than committed amount.
  • Click on Referenced Document tab.

  • Here you can refer previously created contract purchase agreements.
  • Click on Shipment button.
  • You can enter sub inventory here.
  • Click on Approve button. Once Standard Purchase order is approved you can check contract purchase agreement. Open purchase order in query mode and check 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 Contract Purchase Agreement in Oracle EBS R12.


  1. Regards
    Sridevi Koduru (Senior Oracle Apps Trainer
    LinkedIn profile -
    Please Contact for One to One Online Training on Oracle Apps Technical, Financials, SCM, Oracle Manufacturing, BI Publisher, OAF, ADF, SQL, PL/SQL, D2K at | +91 - 9581017828.

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