Oracle Financials Cloud: Accounts Receivable 2017 Implementation Essentials — Question 64

Your customer frequently orders a specific item from a selected list of suppliers. Some of the suppliers provide the item at a negotiated price, whereas other suppliers change the price throughout the year.
How should you set up this item in Oracle Procurement Cloud to address both requirements?

Answer options

• A. Create a Contract Purchase Agreement for the varied price supplier and do not create any kind of agreement for the fixed price supplier.
• B. Create a Planned Purchase Order for the fixed price supplier and do not create any kind of agreement for the varied price supplier.
• C. Create a Blanket Purchase Agreement for the negotiated price supplier and a Contract Purchase Agreement for the varied price supplier.
• D. Create a Contract Purchase Agreement for the fixed price supplier and a Blanket Purchase Agreement for the varied price supplier.

Correct answer: C

Explanation

The correct answer is C because a Blanket Purchase Agreement is suited for suppliers who provide negotiated prices, allowing for multiple releases against the agreement, while a Contract Purchase Agreement is appropriate for suppliers with fluctuating prices. Options A and B do not provide a comprehensive solution for managing both pricing strategies, and option D incorrectly assigns the agreements to the wrong suppliers.