Scenario: The organisation regularly purchases specific items and wants to fix rates with vendors to ensure consistency and cost control.
Action: The user creates a new rate contract by selecting the vendor, item codes, and entering agreed-upon rates and conditions.
Outcome: The system saves the contract with a unique reference.
Scenario: The agreed pricing terms are valid only for a specific time duration.
Action: The user defines the contract start and end dates while creating the rate contract.
Outcome: The system applies the contract rates only within the specified validity period.
Scenario: Each item under the rate contract needs to have a defined rate, unit of measure, and tax applicability.
Action: The user selects item codes and enters the corresponding rate, tax structure, and other item-specific details.
Outcome: The ERP stores the details and ensures accurate rate retrieval during purchase transactions.
Scenario: The vendor revises pricing, or the contract is no longer valid.
Action: The user updates the contract with revised rates or cancels it through the ERP interface.
Outcome: The ERP logs the change with audit history and applies the revised rates for future transactions.
Scenario: The same item is sourced from different vendors at different prices.
Action: The user creates separate rate contracts for each vendor with their respective item rates.
Outcome: The ERP applies the correct contract based on vendor selection during Purchase Order creation.
Scenario: The purchase department wants a summary of all active or expired rate contracts.
Action: The user generates a rate contract report filtered by item, vendor, or contract period.
Outcome: The system displays detailed contract information for procurement planning and audit purposes.