Blanket Purchase Agreement (BPA) with Minimum Release Amount Functionality

Minimum Releases in Blanket Purchase Agreement

Step 1 - Create Items:

Responsibility: Purchasing Super User

Navigation: Items > Master Items.

Create two different items (Test Item1 and Test Item2) as below, apply Purchasing Template and Assign it to the required Organizations.

Test Item1:

Test Item2:

Step 2 - Create BPA:

Now create the Blanket Purchase Agreement for both the lines with Price as 100 for Item1 and 150 for Item2.

Navigation: Purchase Orders > Purchase Orders

Step 2(a) - Enter Minimum Release Amount in "TERMS":

Click Terms on the bottom of the document and give "Minimum Release" as 1000 in "Minimum Release" field. The "Amount Limit" will be defaulted from the header level "Agreed Amount" as seen in the above screen.

Step 2(b) - Enter Minimum Release Amount in "Agreement" TAB for each lines:

Now come to "Agreement" TAB in the line level and give the "Minimum Release" to 500 in line1 and 600 in line2 which restricts the line level minimum release for both the Items.

Approve the Blanket Purchase Agreement and check the Status on the header level.

Step 3 - Blanket Releases:

Now Release the Blanket Purchase Order.

Navigation: Purchase Orders > Releases.

Query with PO number. (Here PO no is 14).

Try to release Item1 for 500 (5 Quantity X 100 USD) and Item2 for 450 (3 Quantity X 150 USD).

Click "Approve"

You cannot release as you get the below error which says,

1. Release amount must be greater than agreed Minimum release amount.

Reason: The Total Release Amount for both the lines 950 (500+450) is less than the Agreed Minimum Release Amount in the Terms Tab (1000).

2. Release line total must be greater than agreement line minimum release amount 600.

Reason: The Total Amount for Item 2 is 450 (3 Qty X 150 USD) where in which we have agreed for minimum release of 600 in the line level Agreement Tab.

Now try to Increase the Iem2 amount to 600 which satisfies the Agreed Minimum Release Amount in Line level (600) and header level (1000).

And now you will be able to release the Purchase Order. (Check the status).