You need to create a purchase agreement between your company and a supplier. The agreement will give you a 10 percent discount automatically on an item, after you purchase $10,000 US dollars' worth…

The correct answer is C. Product value commitment. There are four types of commitments: Product quantity commitment - You purchase a specific quantity of a product. Product value commitment - You purchase a specific currency amount of a product. Product category value commitment - You purchase a specific currency amount in a…

Set up and Configure Procurement and Sourcing

Question

You need to create a purchase agreement between your company and a supplier. The agreement will give you a 10 percent discount automatically on an item, after you purchase $10,000 US dollars' worth of that Item during a 12 month period. Which Default commitment type should you use?

Options

AProduct quantity commitment
BValue commitment
CProduct value commitment
DProduct category value commitment

How the community answered

(20 responses)

A
5% (1)
B
10% (2)
C
80% (16)
D
5% (1)

Explanation

There are four types of commitments: Product quantity commitment - You purchase a specific quantity of a product. Product value commitment - You purchase a specific currency amount of a product. Product category value commitment - You purchase a specific currency amount in a procurement category. The amount can be for a catalog item or a non-catalog item. Value commitment - You purchase a specific currency amount of any product or in any procurement category.

Topics

#purchase agreements#commitment types#product value commitment#vendor discounts

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