Understanding Blanket Agreements
Lock in your pricing and terms once — let SAP Business One apply them automatically.
A blanket agreement is a long-term contract you set up with a customer or vendor to buy or sell goods and services over a defined period, on terms agreed in advance. Instead of renegotiating price, quantity, and discount on every order, you capture those terms once — and SAP Business One applies them automatically to the documents you create afterward.
Two methods, two types
Choose how the agreement is measured:
Items method A commitment to buy or sell specific items, with a planned quantity and agreed price per item. | Monetary method A commitment up to a planned monetary amount, with a discount applied to the partner's price list. |
Then choose how the terms behave:
General Tracks progress toward a quantity or turnover target that earns a year-end bonus, or defines a delivery schedule. Standard prices take precedence. | Specific Applies a special price or discount to each transaction. The agreement's price or discount takes precedence over other prices. |
Why use blanket agreements?
When a valid agreement exists, SAP Business One links it to your sales and purchasing documents and copies the agreed price or discount straight in — no re-keying, fewer pricing errors, and time saved on every order.
Each agreement keeps a running tally of cumulative versus open quantities and amounts, so you always know how much of the commitment is used and what remains. The Blanket Agreements Fulfillment Report shows this across partners and date ranges.
Approved agreements with delivery details feed your forward view: they appear in Cash Flow as Customer Liabilities or Debts to Vendors, and can be included as demand and supply sources in MRP runs.
Define a release plan per line — daily, weekly, monthly, quarterly, or one-time — spreading the planned quantity or amount across the period for predictable delivery scheduling.
Recurring transaction templates can carry the associated agreement, so repeat purchases and sales generate automatically with the right terms applied — as long as the run falls within the agreement's validity period.
Turn on the Renewal reminder to be alerted before an agreement expires, giving you time to renegotiate or renew without a lapse in coverage.
Optionally add the agreement number to a document's journal entry to analyze financial reports by agreement — and allow multiple agreements for the same partner and period to offer different prices based on different payment terms.
Common use cases
- Volume commitment for a bonus or rebate – a General agreement tracking toward a target quantity or turnover.
- Negotiated pricing on repeat items – a Specific Items agreement guaranteeing a fixed unit price.
- Spend commitment with a discount – a Monetary agreement covering a total amount at an agreed discount.
- Scheduled deliveries – any agreement with a release plan defining regular delivery intervals.
How it works at a glance
- Create the agreement: Sales A/R → Sales Blanket Agreement, or Purchasing A/P → Purchase Blanket Agreement. Enter the partner, method, dates, items or amount, and terms.
- Set the status to Approved — only approved agreements can be used on documents.
- Create sales or purchasing documents as usual. SAP Business One links a valid agreement automatically and applies the agreed price or discount.
- Monitor progress through the cumulative and open values, and through the Fulfillment Report.
For complete instructions — creating, approving, changing, terminating, and reporting on blanket agreements, plus field-by-field reference tables — download the attached SAP guide, How to Work with Blanket Agreements (SAP Business One 9.0), below.
Have questions about setting up blanket agreements for your business? Reply to this article or open a support ticket — our team is glad to help.
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