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Oracle Lease and Finance Management User's Guide
Release 12.1
Part Number E13583-05
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Vendor Agreements

This chapter covers the following topics:

Overview

A relationship often develops between lessors and vendors when vendors wish to promote lease financing as a way to generate additional sales. The lessor offers leases or loans to the vendor’s customers. However, even though the lessor has a leasing relationship with the vendor’s customer, the vendor often maintains the sales and service relationship. In such cases, the vendor generally originates the transactions under a program with the lessor.

Vendors may operate according to the following structures:

Create Vendor Account

You can create vendor accounts for parties that do not have suppliers associated with them in Trading Community Architecture (TCA) setups. Complete the following tasks to create a vendor account:

  1. Search for the party in the Vendor Accounts Summary page.

    Note: If the party has vendor accounts associated with it in TCA, then the search results area displays the accounts and you cannot add new vendor accounts. If there are no associated vendor accounts for a party in TCA, then the search results area displays the party name.

  2. In the search results area, select the applicable party and click Add Vendor Account. The Create Vendor Account page opens displaying the party name.

  3. Select the party site of the party to associate it with the vendor account as pay site.

  4. Select the operating unit. Note:

    Note: The list of values includes operating units assigned to the MO: Security profile. Oracle Lease and Finance Management creates the pay site for the selected operating unit.

  5. Click Apply.

    Note: The application displays all the references of party and vendor account relationship in Lease and Finance Management context in the Vendor Account details page.

Vendor Agreements

The two types of vendor program agreements typically used in the leasing industry are:

Operating Agreements

Operating agreements are mutual agreements between a lessor and an organizationally higher-level vendor or manufacturer to work together and administer financing programs that specify specific terms and conditions for future transactions. The terms and conditions in operating agreements are not deal-specific, but rather define the overall nature of an ongoing leasing relationship. In many lessor-vendor relationships, the operating agreement acts as a parent agreement to the program agreement, whereby all the specified terms and conditions in the operating agreement also apply to the program agreement.

Program Agreements

Program agreements are mutual agreements between a lessor and an organizationally lower-level vendor or manufacturer, such as a company's divisions or dealers. A program agreement between the lessor and a vendor creates a specific financing program for the vendor's customers who desire financing. The terms and conditions of the program agreement may govern aspects of the deals created as a result of the operating agreement. In addition to defining the overall legal terms of the vendor/lessor relationship, the program agreement also defines which type of lease application or lease contract the lessor will use when originating deals under the program agreement.

After a program agreement becomes associated with a lease contract, the lease vendor from the vendor program is automatically defaulted as a lease vendor party on the lease contract.

Define Agreements

Lease and Finance Management allows you to create both operating and program agreements.

Operating Agreements

Operating agreements are created in the Operating Agreement subtab of the Vendors tab. Before you can access any of the hypertext links associated with the Operating Agreement subtab, you must first create an operating agreement.

From the Operating Agreements page, you can access all existing operating agreements. You can search for existing agreements by using filtering parameters, including: operating agreement number, status of the operating agreement, and vendor name.

Prerequisites

Before you can define operating agreements, you must:

Steps

To define operating agreements, perform the following steps:

  1. On the Operating Agreements page, click Create.

    The Create Operating Agreement page appears.

  2. Select the operating unit.

    Note: The list of values includes operating units assigned to the MO: Security profile.

    Note: The application displays the selected operating unit as the default in the subsequent pages irrespective of the value that you set for the MO: Default Operating Unit profile option.

    The selected operating unit restricts the valid list of values in applicable fields.

  3. In the Agreement Number field, enter an operating agreement number.

    This value must be a unique alphanumeric entry.

  4. In the Vendor field, select the vendor with whom you are entering into an operating agreement from the list of values.

  5. Enter an Effective From date and, optionally, an Effective To date by making a selection from the calendar.

  6. Agreements can be open ended. Typically, program agreements contain end dates.

  7. Enter a Short Description of the agreement.

  8. Enter a full Description of the agreement.

  9. Enter any additional Comments.

  10. To save the operating agreement and add details, click Save and Add Details, else click Apply to save and add details later.

Add Parties

With operating agreements, you can add the appropriate parties to the agreement. You must also assign a role to each party. Examples of roles include manufacturer, investor, and dealer.

You may also add user-defined roles to agreements. The Parties page, which appears when you click the Parties menu, displays the parties already associated with the agreement.

Note: You can set up new, user-defined party roles that are sourced from the following party repositories:

The available party names and details are sourced based on the party repository defined for that party role. See the Oracle Lease and Finance Management Implementation Guide.

Add Articles

An article is the text that describes and details the terms and conditions that are attached to a contract. You cannot change the text of standard articles. Terms and conditions are contract rules with the addition of computer-readable formatting that cause the application to take action based on the information. Articles are the textual presentation of business rules.

When you add an article to the operating agreement, that article represents text. With a term, however, you can initiate functions within the application based on the term value. For example, an article states that a confirmation letter must be sent within three days of the signature date. When you enter this information as a term, the notification process for a confirmation letter is generated based on the number of specified days.

All articles attached to the operating agreement appear in a table on the Articles page. Selecting the article name displays the actual text of the article, whether or not the article is Standard, that is, a member of the article library in the Oracle Contracts Core module, and any attached comments. You can remove any of the articles from the operating agreement by selecting the appropriate article and clicking the Delete icon

Prerequisites

Before you can add articles to an operating agreement, you must do the following:

Steps

To add articles to an operating agreement, perform the following steps in the Operating Agreements page:

  1. Query the applicable operating agreement.

  2. Click the Agreement Number hypertext link in the results area. The Agreement details page opens.

  3. Click the Articles subtab.

  4. Click Create. The Create Article page appears.

  5. In the Name field, select the article you want to add to the operating agreement from the list of values.

  6. From the Standard drop-down box, select Yes or No.

    If you select Yes, then the text of the existing article in Oracle Contracts Core library is associated with the operating agreement. If you select No, then you can add the article text manually.

  7. To save the article added to the agreement, click Apply.

  8. If you selected No from the Standard drop-down list in Step 4, then select the article name in the Articles subtab on the Agreement details page.

  9. In the Text field, enter the text you want to attach to the article.

  10. To save your work, click the Update icon.

  11. Repeat the procedure for each article you wish to attach to the program agreement.

Guidelines

If you attach standard articles to the contract, the text is not editable. When you select an article name, you can see the text for the article in the Article Details region, which is set up in Oracle Contracts Core.

If you attach non-standard articles to the contract, the text is editable in the Article Details region.

Program Agreements

Use the Program Agreements to search and create program agreements and program templates. At the time you define the program agreement, you can also add a vendor's billing and disbursement information.

From the Program Agreements page, you can access all existing program agreements. You can search for existing agreements by using filtering parameters, including: program agreement number, status of the program agreement, whether you are searching for a template, and vendor name.

Additionally, you can also define program templates from which you can create additional program agreements with the same vendor.

Prerequisites

Before you can define program agreements, you must do the following:

Steps

To define program agreements or program templates, perform the following steps:

  1. On the Program Agreements page, select Program Agreement or Program Template from the Create drop-down list and click Go.

    Depending on which option you selected from the drop-down list, the Create Program Agreement or Create Agreement Template page appears.

  2. Select the operating unit.

    Note: The list of values includes operating units assigned to the MO: Security profile.

    Note: The application displays the selected operating unit as the default in the subsequent pages irrespective of the value that you set for the MO: Default Operating Unit profile option.

    The selected operating unit restricts the valid list of values in applicable fields.

  3. Select a legal entity to identify the first party on the agreement.

  4. In the Agreement Number field, enter an Agreement Number.

    This value must be a unique alphanumeric entry.

  5. If you wish to reference an operating agreement, select an option from the list of values in the Operating Agreement Number field.

  6. In the Vendor field, select the vendor with whom you are entering into a program agreement from the list of values.

  7. Enter an Effective From date and, optionally, an Effective To date by making a selection from the calendar.

    Agreements can be open ended. Typically, program agreements contain end dates.

  8. Enter a short description of the agreement.

  9. Enter a full description of the agreement.

  10. Enter any additional comments.

  11. To save the program agreement and add details, click Save and Add Details. Click Apply to save and add details later.

Add Parties, Billing, and Disbursement Information

With program agreements, you can add the appropriate parties to the agreement. You must also assign a role to each party. Examples of roles include manufacturer, investor, and dealer.

You may also add user-defined roles to agreements. The Parties subtab in the Program Agreement details page displays the parties already associated with the agreement.

Note: You can set up new, user-defined party roles that are sourced from the following party repositories:

The available party names and details are sourced based on the party repository defined for that party role. See the Oracle Lease and Finance Management Implementation Guide.

Where the lessor is providing services to the vendor, the lessor needs the capability of billing the vendor and if refunds or other related payable invoices are required, you can specify the disbursement details.

To add vendor billing information, perform the following steps.

  1. Query for the applicable program agreement in the Program Agreements page.

  2. Click the Agreement Number hypertext link in the results area.

  3. Click the Parties subtab in the Program Agreement details page.

  4. Click the Vendor Billing icon for the selected Party Name. The Vendor Billing page appears.

  5. In the Customer Account field, select the account associated to the vendor’s party record that you want to bill.

  6. In the Bill To Address field, select the vendor's Bill To Address from the list of values.

  7. In the Payment Method field, select the payment method from the list of values.

  8. In the Bank Account field, select the Bank Account that the vendor uses for billing purposes from the list of values.

  9. In the Invoice Format field, select the Invoice Format from the drop-down list.

    The default value is None.

  10. In the Reason for Review field, optionally enter a reason for review.

  11. In the Review until Date field, enter a date by which to sent the invoice to the vendor.

  12. To save your work, click Apply.

To add disbursement details, perform the following steps:

  1. In the Parties subtab of the Program Agreement details page, click the Disbursement Setup icon to open the Disbursement Details page.

  2. Select the vendor.

  3. Select the pay site associated to the vendor’s party record for which you want to send payments.

  4. Specify the payment terms, method of payment, and pay group.

  5. Click Apply.

Note: You can select or create a vendor and the associated pay site in the following situations:

Prerequisites

Before you can add parties and party contacts to a program agreement, you must do the following:

Steps

To create program agreement parties and party contacts, perform the following steps:

Create Party

  1. Query for the applicable program agreement.

  2. Click the Agreement Number hypertext link in the results area. The Program Agreement details page opens.

  3. Click the Parties subtab and click Create.

    The Create Party page appears.

  4. In the Role field, select a role for this party from the drop-down list.

  5. In the Party Name field, select the party name from the list of values.

  6. In the Party Known As field, enter an alternative name. For example, Robert Jones & Sons Automotive.

  7. In the Alias field, enter an Alias name. For example, Jones Auto.

  8. To save your work, click Apply

Add Party Contacts

  1. To add party contacts to the program agreement, return to the Program Agreement details page.

    Note: The Program Agreement details page displays a list of all the party contacts already associated with the agreement. Party contacts are people that serve as the liaison between you and that particular party.

  2. Select a party name and click Create under the Party Contacts region.

    The Create Party Contact page appears.

  3. In the Contact Role field, select a role for the party from the drop-down list. For example, inspector, account manager, and so on.

  4. In the Contact Name field, select the name of the party contact from the list of values.

  5. To save your work, click Apply.

  6. Repeat these steps for each party and party contact you want to associate with the agreement.

Add Articles

An article is the text that describes and details the terms and conditions that are attached to a contract. You cannot change the text of standard articles. Articles differ from terms and conditions. Terms and conditions are contract rules with the addition of computer-readable formatting that cause the application to take action based on the information. Articles are the textual presentation of business rules.

When you add an article to the agreement, that article represents text. With a term, however, you can initiate functions within the application based on the term value. For example, an article states that a confirmation letter must be sent within three days of the signature date. When you enter this information as a term, the notification process for a confirmation letter is generated based on the number of specified days.

All articles attached to the program agreement appear in a table on the Articles page. Selecting the article name displays the actual text of the article, whether or not the article is Standard, that is, a member of the article library in the Oracle Contracts Core module, and any attached comments. You can remove any of these articles from the agreement by selecting the article and clicking the Delete icon.

Prerequisites

All Standard articles must be written and set up in Oracle Contracts Core. See Oracle Contracts Core Concepts and Procedures.

Before you can add articles to an agreement, an agreement must be created.

Steps

To add articles to a program agreement, perform the following steps:

  1. Query for the applicable program agreement in the Program Agreements page.

  2. Click the Agreement Number hypertext link in the results area. The Program Agreement details page opens.

  3. Click the Articles subtab and click Create.

    The Create Article page appears.

  4. In the Name field, select the article you want to add to the agreement from the list of values.

  5. Choose whether the article should be Standard or not.

    Choosing Yes brings the text of the existing article in Oracle Contracts Core library over to the Agreement. If you choose No, you add the text of the article manually.

  6. To save the article to the agreement, click Apply.

  7. If you selected No from the Standard drop-down list, then select the article name in the Program Agreement details page.

  8. In the Text field, enter the text you want to attach to the article.

  9. To save your work, click the Update icon.

  10. Repeat the procedure for each article you wish to attach to the program agreement.

Guidelines

If you attach Standard articles to the contract, the text is not editable. When you select an article name, you can see the text for the article in the Article Details region, which is set up in Oracle Contracts Core.

If you attach Non-Standard articles to the contract, the text is editable in the Article Details region.

Add Term Sets

Terms and conditions are the procedural guidelines of an agreement. In Lease and Finance Management, terms and conditions are grouped together in term sets. Term sets are then associated with an agreement and the parameters of the individual terms within the set are defined.

For program agreements, terms and conditions may directly affect potential lease contracts, whereas terms and conditions added to the operating agreement, apply to all subsequent program agreements.

For example, if your organization never offered purchase options in any of its lease agreements, you could define them in the program template. If, on the other hand, you did offer a variety of end-of-term purchase options, depending upon the specific program, you could define those terms and conditions in the specific program agreement.

Note: Do not define terms and conditions that vary from contract to contract on a program agreement.

Terms and Conditions that Relate to Program Agreements

Terms and conditions that relate to program agreement issues between vendor/lessor are maintained on the program agreement. These program terms and conditions do not have effectivity dates.

The following program terms and conditions do not default to the lease contract and, therefore, are not updatable on the lease contract:

Note: All terms and conditions that you want to default onto the lease contract must be removed from the program agreement and mapped through contract templates.

Terms and Conditions that Relate to Lease Contracts

Terms and conditions that relate to lease contract issues between lessor/lessee are maintained on a lease contract template that you can create in the Origination tab.

Prerequisites

Before you can add terms and conditions to a program agreement, an agreement must be created.

Guidelines

Without a change request, you can update the values of the attributes until the agreement is saved. Once the agreement is approved and activated, you must initiate a change request to change the attributes of terms and conditions.

Steps

To add terms and conditions to a program agreement, perform the following steps:

  1. Query for the applicable program agreement in the Program Agreements page. Before you can access the Terms Set hypertext link, you must select a program agreement in the Program Agreements Search page.

  2. Click the Agreement Number hypertext link in the results area. The Program Agreement details page opens.

  3. Click the Term Set subtab and click Create.

    The Terms and Conditions page appears.

  4. From the drop-down list, select a term set and click Go.

    The individual terms in the selected term set appear.

  5. Select the terms for which you wish to specify attributes and click Update.

  6. Specify the appropriate attributes for each term on the page.

    This page contains all the attributes attached to a particular term. Any term can have up to 15 attached attributes. You can set these attributes by choosing from a list of values, entering text or selecting or deselecting check boxes, depending upon the nature of the attribute.

    For a list of all the seeded terms and conditions sets, see the Seed Data appendix in the Oracle Lease and Finance Management Implementation Guide.

  7. To save your work, click Apply.

  8. Repeat Steps 4 to 6 for all term sets you want to add to the program agreement.

    Each term set selected in Step 4 appears in a table at the bottom of the Term Set page, along with all the terms associated with the set.

  9. To specify or change parameters of a term, click the appropriate Update icon in the Term Set page.

    A page opens to the selected term.

    Note: If the program agreement for which you want to change terms has not been activated, you can change the parameters of terms. If, however, the program agreement has not been activated, you must initiate a change request and submit it for approval.

  10. Edit all required and optional attributes appropriate for the business rules that drive this particular agreement.

  11. To save your work, click Apply.

  12. Repeat this procedure for each term set you are adding to the agreement.

Create Associations

You can associate attachments, such as a lease contract template or a lease application template, with a program agreement. A lease contract template is a contract with pre-defined values. When used in conjunction with a program agreement, it effectively controls the lease contracts created under the program agreement. A lease application template is a lease application with pre-defined values. Multiple active lease application templates can be associated with a program agreement.

The association of a lease contract template or a lease application template, with a program agreement enables terms and conditions between lessor/lessee that are defined on a lease template to default onto a lease contract. The association feature enables you to search for, select, view, add, or terminate (via end date) the association of lease templates with program agreements.

When associating lease contract templates to a vendor agreement, the following rules apply:

To associate a template with a program agreement, perform the following steps:

  1. Query for the applicable program agreement in the Program Agreements page.

  2. Click the Agreement Number hypertext link in the results area. The Program Agreement details page appears.

  3. Click the Associations subtab.

  4. Select Lease Contract Template or Lease Application Template from the drop-down list and click Create.

    The Create Association page appears.

  5. In the Association field, select the number of the template that you are associating with the program agreement.

  6. In the Start Date and End Date fields, select association effectivity dates from the calendar.

  7. In the Description field, optionally enter a description.

  8. To save the association, click Apply.

Define Selection Options

Program agreement options define what options can be selected when originating a deal under a program agreement. Options include End of Term Values, Financial Products, Items, and Item Categories. When creating a quote, lease application, or contract under a program agreement, these objects can only include the options defined in the program agreement. Options are used to support the sales quote functionality. Sales personnel use options to price quotes.

To add options to a program agreement, perform the following steps:

  1. Query for the applicable program agreement in the Program Agreements page.

  2. Click the Agreement Number hypertext link in the results area. The Program Agreement details page opens.

  3. Click the Selection Options subtab and select a an option type from the Create drop-down list and click Go.

    The Create Options page appears.

  4. In the Name field, select an option name for the option type from the list of values.

  5. In the Start Date and End Date fields, select effectivity dates for the option from the calendar.

  6. To save the option, click Apply.

Select Criteria

Eligibility criteria are used to search and filter which program agreements are eligible for use when creating contracts. You associate eligibility criteria values with a program agreement when you want to restrict the association of that program agreement to a lease, quote, or lease application for specific qualifying conditions. Examples of eligibility criteria include eligible territories, industries, deal sizes, product, asset categories or items, customer risk profiles, and down payment amounts.

To add eligibility criteria to a program agreement, perform the following steps:

  1. Query for the applicable program agreement in the Program Agreements page.

  2. Click the Agreement Number hypertext link in the results area. The Program Agreement details page opens.

  3. Click the Criteria subtab.

  4. Specify whether you want the eligibility criteria to match all or one program agreement.

  5. Select the applicable option to indicate the validation message.

  6. Select a criteria name from the Add Criteria drop-down list and click Go.

    The Value fields appears on the page.

  7. Enter effectivity dates for the selected criteria.

  8. In the Value fields, specify the maximum and minimum values for the criteria.

  9. To save the criteria and its value, click Apply.

Validate Agreements--Applies to Both Operating Agreements and Program Agreements

Validation functionality applies to both operating agreements and program agreements. The following phases occur during the validation process:

Quality Assurance Checklist

After you have authored an agreement and have chosen a quality assurance checklist that you want to use to validate the agreement, you can view the results of that validation by clicking the Checklist link.

After you have clicked the link, key information of the agreement appears, including the Vendor Name, Agreement Number, Operating Agreement Number, Agreement Status, and Agreement Description. Also the names of the Workflow Process and the Checklist appear.

At the bottom of the page, a table shows the various validated business-rule processes. It also displays a description of the process, the severity or status of the validation (values are Pass, Fail, and Warning) and the details of the validation assessment. If there is a problem, such as "Contact e-mail is missing," this message appears in the Details column.

If the process passes validation, the following message appears: "The contract QA process has completed successfully."

Before you can activate an agreement, all outstanding errors identified by the checklist must be addressed. You do not need to resolve warning statuses; they only notify you of items that you should address.

Approval

After agreements are validated, their status changes from New to Passed. When they are submitted to approvers for approval, their status changes from Passed to Pending Approval.

Status Change

When agreements are validated and approved, their status changes from Pending Approval to Active.

Prerequisites

An agreement must be completed and a checklist and workflow process must be associated.

For more information on the contract validation process, see the Oracle Contracts Core Concepts and Procedure guide for details.

Duplicate Agreements--Applies to Both Operating Agreements and Program Agreements

You can duplicate both operating agreements and program agreements using the same procedure, only from the Operating Agreements and Program Agreements tabs respectively. Additionally, you can save a program agreement as a program agreement template.

When you create a new program agreement, you can duplicate an existing program agreement and save it as a new program agreement or as a program agreement template. When you perform this function, all parties, contacts, terms and conditions, articles, and validation checker settings are copied to the new program agreement.

Copying a program agreement into a template creates a document that cannot be activated.

Prerequisites

A vendor program agreement must be set up.

Steps

Perform the following steps:

  1. At the Program Agreements or Operating Agreements page, search for the agreement you want to duplicate.

  2. Click the Duplicate icon for the program or operating agreement you wish to duplicate.

    The Program Agreement Details page appears. The agreement category (either operating or program) is copied from the original agreement and displayed on this page, along with the original agreement number.

  3. In the Agreement Number field, enter a unique agreement number for the new agreement and click Save and Add Details.

  4. To make changes in the duplicate agreement, click Update, make the appropriate changes, and click Apply.

  5. To activate the new agreement, navigate to the Program Agreement Details page and click Validate Agreement.

    The Validate Agreement page appears.

  6. To submit the new agreement for approval, click Submit for Approval.

Update Agreements

Once you create an operating or program agreement, you can extend the agreement end date for all agreements.

Prerequisites

An agreement must be set up.

Steps

To extend the operating or program agreement's end date, perform the following steps:

  1. From the Program Agreement page, search for the agreement that you want to extend and select the option to the left of the agreement.

  2. Click the Extend button.

    This opens the Extend Agreement page. The existing end date appears.

  3. In the New End Date field, enter the new end date for the contract.

  4. Click the Update button to save your work.

Initiate Change Requests--Applies to Operating Agreements

Change requests are any changes that are made to an operating agreement after it has been approved and activated. If you wish to make changes to an operating agreement with a status of Active, a change request is required. Examples of typical operating agreement change requests include changes in details, parties, or articles. Lease and Finance Management records a history of changes to active operating agreements, along with corresponding reasons and notes.

The table below shows the various statuses of an operating agreement and indicates whether the operating agreement is updateable and whether a change request is required.

Updateable Attributes and Change Request Requirements Associated with Operating Agreement Status
Operating Agreement Status Operating Agreement Updateable Change Request Required
New Yes No
Passed (after operating agreement has been validated) Yes No
Pending Approval (after operating agreement has been submitted for approval) No No
Abandoned (New or Passed statutes can be abandoned) No No
Rejected Yes No
Active (after operating agreement has been validated and approved) Yes Yes
Expired No No
Incomplete Yes No

The operating agreement uses one type of change request that occurs at the program agreement level. This change request makes all the operating agreement tabs available for updating and is applicable to changes that are infrequent and that require a high level of approval.

To initiate a change request for an operating agreement with a status of Active, perform the following steps:

  1. Query for the applicable operating agreement in the Operating Agreements page.

  2. Click the Agreement Number hypertext link in the results area. The Agreement details page opens.

  3. Click the History subtab and click Create Change Request.

    The Change Request page appears.

  4. In the Reason field, select a reason for creating the change request from the list of values.

  5. In the Notes field, optionally specify comments about the change request.

  6. To create the change request, click Apply.

  7. Click the appropriate subtabs and update the appropriate information to be changed on the operating agreement.

  8. To validate the operating agreement after updating, click Validate Agreement.

    The Validate Agreement page appears.

  9. To submit the change request for approval, click Submit for Approval. The change request is approved or rejected. When the change request is approved, you can view both old and new values for changed attributes.

    Note: You can abandon a change request that has not been submitted for approval.

  10. Modify rejected change requests and resubmit for approval.

Initiate Change Requests--Applies to Program Agreements

Change requests are any changes that are made to a program agreement after it has been approved and activated. If you wish to make changes to a program agreement with a status of Active, a change request is required. Examples of typical program agreement change requests include changes in parties, articles, terms, associations, options, or criteria. Lease and Finance Management records a history of changes to active program agreements, along with corresponding reasons and notes.

The table below shows the various statuses of a program agreement and indicates whether the program agreement is updateable and whether a change request is required.

Updateable Attributes and Change Request Requirements Associated with Program Agreement Status
Program Agreement Status Program Agreement Updateable Change Request Required
New Yes No
Passed (after operating agreement has been validated) Yes No
Pending Approval (after operating agreement has been submitted for approval) No No
Abandoned (New or Passed statutes can be abandoned) No No
Rejected Yes No
Active (after operating agreement has been validated and approved) Yes Yes
Expired No No
Incomplete Yes No

For program agreements, there are two types of change requests that reflect two different levels of changes: program level and association level. One change request occurs at the program agreement level and is applicable to changes that are infrequent and that require a high level of approval. The other change request is used for changing template associations, which may be more frequent and which require a low level of approval.

To initiate a change request for a program agreement with a status of Active, perform the following steps:

  1. Query for the applicable program agreement in the Program Agreements page.

  2. Click the Agreement Number hypertext link in the results area. The Program Agreement details page opens.

  3. Click the History subtab.

  4. Select Association or Agreement from the Create Change Request drop-down list to specify the type of program agreement change request you wish to create and click Go.

    Note: If you select Association, you can only make changes to associations. If you select Agreement, all the program agreement tabs are available for updating.

    The Change Request page appears.

  5. In the Reason field, select a reason for creating the change request from the list of values.

  6. In the Notes field, optionally specify comments about the change request.

  7. To create the change request, click Apply.

  8. Click the appropriate subtabs and update the appropriate information to be changed on the program agreement.

  9. To validate the program agreement after updating, click Validate Agreement.

    The Validate Agreement page appears.

  10. To submit the change request for approval, click Submit for Approval. The change request is approved or rejected. When the change request is approved, you can view both old and new values for changed attributes.

    Note: You can abandon a change request that has not been submitted for approval.

  11. Modify rejected change requests and resubmit for approval.

View Change Requests--Applies to Both Operating Agreements and Program Agreements

To view an initiated change request, click the change request number hypertext link in the History subtab of the Program Agreement details page.

Terminate Agreements--Applies to Both Operating Agreements and Program Agreements

Once you define an operating agreement or a program agreement, you can terminate it. You can terminate agreements that have a status of Active.

Note: If you have not yet activated an agreement such that the status is Active, you can abandon it. For information on abandoning an agreement, see Abandon an Agreement.

Terminate an Agreement

To terminate an operating agreement or a program agreement, which means changing the agreement status to Expired, perform the following steps.

  1. From the Program Agreements page, select Active from the drop-down list in the Status field and click Go.

    All the program agreements with a status of Active display.

  2. Click the agreement number link of the program agreement you wish to terminate.

    The Program Agreement Details page appears.

  3. In the History subtab, select Agreement from the drop-down list to specify the type of program agreement change request you wish to create and click Go.

    The Change Request page appears.

  4. In the Reason field, select Change Terms from the list of values.

  5. In the Notes field, optionally specify comments about the change request.

  6. To create the change request, click Apply.

  7. Click the Agreement Details link.

    The program agreement change request appears.

  8. To terminate the program agreement, click Update.

    The program agreement appears.

  9. To terminate the program agreement, select today's date from the calendar in the Effective To field and click Apply.

    Note: End-dating the program agreement with today's date effectively terminates the program agreement, but does not delete the program agreement data from the system.

  10. Navigate to the Schedule Request: Name page.

  11. In the Program Name field, select the Terminate Investor Agreements concurrent program from the list of values.

  12. Optionally, enter a name for the process request.

  13. Click Next.

    The Schedule Request: Parameters page appears.

  14. In the Termination Date field, select a termination date from the calendar.

  15. Continue with Steps 3 through 7 of the schedule request and click Submit.

    Note: If the agreement does not have an end date, you must enter one as indicated in Step 9 and then run the Terminate Investor Agreements concurrent program. If the agreement is end dated, the Terminate Investor Agreements concurrent program searches for the end date and updates the agreement status to Expired.

  16. To validate the program agreement change request after updating, click Validate Agreement.

    The Validate Agreement page appears.

  17. To submit the change request for approval, click Submit for Approval. The change request is approved or rejected. When the change request is approved, you can view both old and new values for changed attributes in the History page.

Abandon an Agreement

After you define an operating agreement or a program agreement, you can abandon agreements that have not been activated.

Note: If you no longer want to use an activated agreement, you must terminate the agreement. For information on terminating an agreement, see Terminate an Agreement.

Prerequisites

An agreement must be set up.

Steps

To abandon an operating agreement or a program agreement, perform the following steps:

  1. From the Program or Operating Agreement pages, search for the agreement that you want to abandon.

  2. Click the Abandon icon.

    The Abandon Agreement page opens and the displayed agreement status changes to Abandoned.

  3. Click the Update button to save your work.

    Caution: After you have changed the status of an agreement from Active to Abandoned, you can no longer activate the agreement.