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Oracle® Fusion Applications Enterprise Contracts Implementation Guide
11g Release 1 (11.1.2)
Part Number E20371-02
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16 Define Contracts Common Configuration

This chapter contains the following:

Specifying Customer Contract Management Business Function Properties

Specifying Supplier Contract Management Business Function Properties

Defining Notes: Points to Consider

What's an Interaction

Managing Contract Party Roles and Sources

Managing Party Contact Roles

Managing Contract Types

Managing Contract Risks

Enabling Different Levels of Contract Terms Editing During Contract Authoring: Explained

Setting Up Contract Text Search: Highlights

Specifying Customer Contract Management Business Function Properties

Customer Contracts Business Unit Setup: Explained

Using the Specify Customer Contract Management Business Function Properties task, available by navigating to Setup and Maintenance work area and searching on the task name, you can specify a wide variety of business function settings for customer contracts in a specific business unit. The selections you make for these business functions impact how Oracle Fusion Enterprise Contracts behaves during contract authoring.

Using the Specify Customer Contract Management Business Function Properties task, manage these business function properties:

Enabling Related Customer Accounts

Contract authors can specify bill-to, ship-to, and other accounts for the parties in a contract. Enable the related customer accounts option if you want accounts previously specified as related to the contract party to be available for selection.

Managing Currency Conversion Options

If your organization plans to transact project-related business in multiple currencies, then select the multicurrency option. This allows a contract author to override a contract's currency, which defaults from the ledger currency of the business unit. It also enables the contract author to specify currency conversion attributes to use when converting from the bill transaction currency to the contract currency and from the invoice currency to the ledger currency.

In the Bill Transaction Currency to Contract Currency region, enter currency conversion details that will normally be used, by all contracts owned by this business unit, to convert transaction amounts in the bill transaction currency to the contract currency. Newly created contracts contain the default currency conversion values, but you can override the values on any contract, if needed.

In the Invoice Currency to Ledger Currency region:

Managing Project Billing Options

The options available for selection in the Project Billing region control the behavior of project invoicing and revenue recognition for contracts with project-based work.

Project billing can behave differently for external contracts (customer billing) or intercompany and interproject contracts (internal billing).

Set these options, which apply to all contracts:

There are two sets of the following options, one for customer billing and a second for internal billing:

Set this option only for customer billing:

Contract Terms Library Business Unit Setup: Explained

You can specify a wide variety of Contract Terms Library settings for either customer or supplier contracts within each business unit, by using either the Specify Customer Contract Management Business Function Properties or the Specify Supplier Contract Management Business Function Properties tasks. These tasks are available by navigating to the Setup and Maintenance work area and searching on the task name.

For the Contract Terms Library in each business unit, you can:

Enabling Clause Adoption

If you plan to use clause adoption in your implementation, then set up the following:

Setting Clause Numbering Options

You can set up automatic clause numbering for the clauses in the business unit by selecting Automatic in the Clause Numbering field and entering a Document Sequence Category you previously set up in the Clause Sequence Category field. If clause numbering is manual, contract terms library administrators must enter unique clause numbers each time they create a clause.

You can choose to display the clause number in front of the clause title in contracts by selecting the Display Clause Number in Clause Title option.

Enabling Contract Expert

You must select the Enable Contract Expert option to be able to use the Contract Expert feature in a business unit. This setting takes precedence over enabling Contract Expert for individual contract terms templates.

Specifying the Printed Clause and Deviations Report Layouts

For each business unit, you can specify the Oracle BI Publisher RTF file that serves as the layout for:

Specifying Supplier Contract Management Business Function Properties

Supplier Contracts Business Unit Setup: Explained

Using the Specify Supplier Contract Management Business Function Properties task, available by selecting Setup and Maintenance from the Tools menu and searching on the task name, you can specify a variety of business function settings for supplier contracts in a specific business unit.

The selections you make for these business functions impact how the Contract Terms Library behaves during supplier contract authoring.

Managing Contract Terms Library Setup Options

The setup options available for the Contract Terms Library are applicable to both customer and supplier contracts, and are described in the business unit setup topic for the Contract Terms Library. That topic is available as a related link to this topic.

Contract Terms Library Business Unit Setup: Explained

You can specify a wide variety of Contract Terms Library settings for either customer or supplier contracts within each business unit, by using either the Specify Customer Contract Management Business Function Properties or the Specify Supplier Contract Management Business Function Properties tasks. These tasks are available by navigating to the Setup and Maintenance work area and searching on the task name.

For the Contract Terms Library in each business unit, you can:

Enabling Clause Adoption

If you plan to use clause adoption in your implementation, then set up the following:

Setting Clause Numbering Options

You can set up automatic clause numbering for the clauses in the business unit by selecting Automatic in the Clause Numbering field and entering a Document Sequence Category you previously set up in the Clause Sequence Category field. If clause numbering is manual, contract terms library administrators must enter unique clause numbers each time they create a clause.

You can choose to display the clause number in front of the clause title in contracts by selecting the Display Clause Number in Clause Title option.

Enabling Contract Expert

You must select the Enable Contract Expert option to be able to use the Contract Expert feature in a business unit. This setting takes precedence over enabling Contract Expert for individual contract terms templates.

Specifying the Printed Clause and Deviations Report Layouts

For each business unit, you can specify the Oracle BI Publisher RTF file that serves as the layout for:

Defining Notes: Points to Consider

A note is a record attached to a business object that is used to capture nonstandard information received while conducting business. When setting up notes for your application, you should consider the following points:

Note Types

Note types are assigned to notes at creation to categorize them for future reference. During setup you can add new note types, and you can restrict them by business object type through the process of note type mapping.

Note Type Mappings

After note types are added, you must map them to the business objects applicable to your product area. Select a business object other than Default Note Types. You will see the note types only applicable to that object. If the list is empty, note type mapping doesn't exist for that object, and default note types will be used. Select Default Note Types to view the default note types in the system. Modifying default note types will affect all business objects without a note type mapping. For example, you have decided to add a new note type of Analysis for your product area of Sales-Opportunity Management. Use the note type mapping functionality to map Analysis to the Opportunity business object. This will result in the Analysis note type being an available option when you are creating or editing a note for an opportunity. When deciding which note types to map to the business objects in your area, consider the same issues you considered when deciding to add new note types. Decide how you would like users to be able to search for, filter, and report on those notes.

Note

Extensibility features are available on the Note object. For more information refer to the article Extending CRM Applications: how it works.

What's an Interaction?

The primary purpose of an interaction is to provide a historical view of all communications initiated by you to a customer (outbound) or by a customer to you (inbound). Interaction is intended to document customer communication, not internal communication, therefore Customer is a required attribute. You can record the method of communication, or channel, by which the interaction occurred. For example, you can denote that the communication was via phone, E-mail, by chat, through a web conference, a meeting in person, and so on. It also records the business objects discussed in the communication. That is, which opportunity or marketing campaign was discussed? You can summarize the interaction or outcome in the Description attribute or pick a specific value in the Outcome attribute, such as "Left Message". But, the actual content of the interaction should be attached as a separate file, especially when it is larger. Finally, you can not only list the external customer contacts but also any internal resources who were participants in the interaction.

Extensibility features are available on the Interaction object. For more details, refer to the article Extending CRM Applications: How It Works

Managing Contract Party Roles and Sources

Setting Up Contract Party Roles and Making Them Available in Contracts: Explained

Party roles provide a way for you to specify the roles of different parties in the contract. For example, a sales contract may include the customer, a partner, and the internal business unit selling the product and service. Your application comes with predefined party roles, but you can create additional roles and you can specify how the roles are used in sales, purchasing, and project contracts.

This topic:

Managing Party Roles

The application comes with the following predefined party role names in the lookup type OKC_PARTY_ROLE. You can add additional lookup codes in the Setup and Maintenance work area by selecting the Manage Contract Party Roles task.


Lookup Code

Meaning

CUSTOMER

Customer

INTERCOMPANY

Internal party

PARTNER

Partner

SUPPLIER

Supplier

THIRD_PARTY

Third party

Making Party Roles Available for Use in Contracts

To make party roles available for use in contracts, you must:

  1. Associate each party role to the appropriate party source by selecting the Manage Contract Roles Sources task in the Contracts work area.

  2. While managing contract types using the Manage Contract Types task in the Setup and Maintenance work area, add each party role to the contract types where you want the party role to be used. You can add a party role either as one of the two primary contract parties (the Buyer Role and the Seller Role) or as a secondary party. You can only have one Seller Role and one Buyer Role in a contract. You can have multiple secondary parties with the same role.

The application includes the following party sources which you cannot modify:


Party Source Code

Name

Description

OKX_PARTY

Customer

Parties in the Trading Community Architecture (TCA) where the party usage is External Legal Entity.

OKX_OPERUNIT

Business Unit

Internal business units.

OKX_VENDOR

Supplier

Parties in TCA where the party usage is Supplier.

OKX_INT_COMP_PARTY

Internal party

Internal parties available for Oracle Fusion Projects interproject billing.

OKX_PARTNER

Partner

Partners. This source is reserved for Oracle Fusion Partner Relationship Management.

You can use the same party role for both buy-intent and sell-intent contracts by associating the party role to different sources. This figure shows how you can reuse the role Customer in both buy and sell contracts. The customer for sales contracts is a TCA party (Customer). The customer for buy contracts is an internal business unit.

To reuse the same party in buy and sell contracts, you:

  1. Select the Customer party role in the Manage Contract Role Sources page.

  2. Set the Sell Intent Source to Customer and the Buy Intent Source to Business Unit.

  3. To use the party role in a contract, you must also enter it in contract types where you want to use it as one of the primary contact parties or as a secondary party.

The setup in this figure will have the following effect:

This figure shows how you can map the
same party role to different party.

Managing Party Contact Roles

Setting Up Party Contact Roles and Making Them Available for Use: Explained

Contact roles specify the roles party contacts play in the contract. Your application comes with a set of predefined contact roles, but you can set up additional contact roles for use with different parties in the contract.

This topic:

Managing Contact Roles

The application comes with the following predefined contact roles in the extensible lookup type OKC_PARTY_CONTACT_ROLE:


Lookup Code

Meaning

BUYER

Buyer

CONTRACT_ADMIN

Contract administrator

EMPLOYEE

Employee

PARTNER_CONTACT

Partner contact

PARTY_CONTACT

Customer contact

SALESPERSON

Salesperson

VENDOR_CONTACT

Supplier contact

You can add additional contact roles by selecting the Manage Contract Contact Roles task in the Setup and Maintenance work area .

Making Contact Roles Available for Use in Contracts

For a contact role to be available for use in contracts, you must navigate to the Manage Contract Role Sources page by selecting the Manage Contract Roles Sources task in the Contracts work area and make the following entries for each of the party roles where you want the contact role to be available:

  1. Select the party role.

  2. Add the contact role.

  3. Enter the sell-intent contact source or the buy-intent contact source or both. Which contact sources you can enter depends on the party source settings for the party role.

The following contact sources come predefined with the application in the system lookup type OKC_PARTY_CONTACT_SOURCE. You cannot edit the contract role sources or add additional ones.


Lookup Code

Meaning

Description

OKX_PARTNER_CONTACT

Partner contact

Used exclusively for Oracle Fusion Partner Management contracts.

OKX_PCONTACT

Customer contact

Contacts of parties in the Trading Community Architecture (TCA) where the party usage is External Legal Entity.

OKX_RSCEMP

Employee

Employees in the internal human resources database.

OKX_SALEPERS

Salesperson

Employees in the internal human resources database.

OKX_VCONTACT

Supplier contact

Contacts of parties in TCA where the party usage is Supplier.

The following figure illustrates the setup required to make a contact role available in both customer and supplier contracts:

  1. The party role Customer is associated with both a sell intent and buy intent source. In a sales contract, a Customer party is a TCA party (party source Customer). In a buy-intent contract, the Customer is an internal business unit.

  2. You make the contact role available in both customer and supplier contracts by specifying the Sell Intent Source as Customer Contact and to the Buy Intent Source as Employee.

  3. In sales contracts, customer contacts will now be TCA party contacts. In procurement contracts, customer contacts will be employees.

This figure shows how you can make
a contact role available in buy-intent and sell-intent contracts.

Managing Contract Types

Contract Types: Explained

A contract type is a contract category that contract authors must select when creating a contract. It is a mandatory setup that determines the nature of the contract, for example, if the contract is a project contract, a purchasing contract, or a simple nondisclosure or employment agreement. A contract type also specifies what kinds of information you can enter and what contract lines, parties, and party contacts are permitted.

This topic provides an overview of the superset of contract type setups for a broad range of contracts. When setting up individual contract types, only a subset of the fields listed here are visible. For example, the project billing option entries are visible only in contract types with a sales-intent, the notifications fields appear only for contract types with a buy-intent.

Overview

Create contract types by selecting the Manage Contract Types action from the Setup and Maintenance work area. You can also create contract types in the Contracts work area by selecting Contract Types under the Setup task heading. In each contract type you can:

Common Contract Type Entries

The following table describes the common contract type entries:


Field or Option

Description

Class

Indicates the category of the contract you are authoring:

  • Enterprise Contract: Used for authoring both buy and sell contracts where you are buying or selling items and services now. Examples of contracts of this class include contract purchase agreements, project contracts, and repository contracts.

  • Partner Agreement: Used exclusively for Oracle Fusion Partner agreements.

  • Purchase Agreement: Used for negotiating a future purchase of goods and services.

You cannot change the class after the contract type is created.

Set

Determines the data security for contracts of this type.

Name

The name contract authors will select when authoring contracts.

Description

Description that is visible only for administrators managing contract types.

Allow Lines

Selecting this option makes it possible for you to specify what line types can be added to the contract. You cannot change the setting after the contract type is created.

Enable Automatic Numbering

Selecting this option enables the automatic numbering of contract lines during contract authoring.

Requires Acceptance

This option determines if customer acceptance is required before this type of contract can become active. After approval, the contract is set to the Pending Acceptance status and requires the contract author to enter the date of customer approval before the contract become active.

Contract Numbering Method and Contract Sequence Category

Specifies if the contract number is entered manually by the contract author or generated automatically based on the document sequence category you specify.

Intent

Contracts can have either a sell intent (project contracts and partner agreements) or buy intent (purchase contracts).

You cannot change the intent after the contract type is created.

Buyer Role

The party role of the recipient of the goods and services in the contract. For a sales or a project contract, this is the role you set up for the customer. For a purchasing contract, it is the role you set up for the business units in your organization. You cannot edit the entry in this field after contract type creation.

Seller Role

The party role of the party delivering the goods and services covered by the contract. For a sales or a project contract, this is the role you set up for one of the internal business units. For a purchasing contract, it is the role you set up for the supplier. You cannot edit the entry in this field after contract type creation.

Contract Owner Role

The contact role assigned to the owner of the contract. Contract ownership is automatically assigned to the employee who creates the contract. The owner is automatically assigned the role you specify here.

Buyer Contact Role

In purchase contracts only: The role you specify in this field specifies the role of the buyer that will be copied from the contract header to the contract deliverables created for contract lines.

Requester Contact Role

In purchase contracts only: The role of employee who will be used as the creator of a requisition in Oracle Fusion Purchasing.

Contract Layout Template

The Oracle BI Publisher template that is used to print the entire contract.

Terms Layout Template

The Oracle BI Publisher template used to print the contract terms.

Notify Before Expiration, Days to Expiration, and Contact Role to be Notified

Selecting this option sends a notification before contract expiration to the individual with the role specified in the Contact Role to Be Notified the number of days specified the Days to Expiration field.

Line Types

You can enter the line types permitted by the class you selected for the contract type and only if you selected the Allow Lines option during the contract type creation. The following table describes the possible line types.


Line Type

Description

Buy agreement, free-form

Enables entry of items not tracked in inventory for purchasing. You can create master agreements in the purchasing application from lines of this type.

Buy agreement, item

Enables entry of inventory items for purchasing. You can create master agreements in the purchasing application from lines of this type.

Buy intent, free-form

Enables entry of items not tracked in inventory for purchasing. You can create purchase orders in the purchasing application from lines of this type.

Buy intent, item

Enables entry of inventory items for purchasing. You can create purchase orders in the purchasing application from lines of this type.

Sell intent, free-form, project-based

Enables entry of items not tracked in inventory and displays project-related tabs and fields in a contract. You can associate and bill the line to a project in Oracle Fusion Projects.

Sell intent, item, project-based

Enables entry of inventory items and displays project-related tabs and fields in a contract. You can associate and bill the line to a project in Oracle Fusion Projects.

Additional Party Roles

You can add party roles that contract authors can add to a contract in addition to the primary parties specified in the Buyer Role and Seller Role fields. A contract author can add multiple additional parties with the same role to the contract.

Project Billing Options

For contract types created for projects (sales-intent contract types of class Enterprise Contract and at least one project line type), you can set the following project billing options:


Option

Description

Intercompany

Enables project billing between internal organizations.

Interproject

Enables billing to other projects.

Enable Billing Controls and Billing Limit Type

Enables billing controls for each contract line, making it possible for you to specify a hard limit or a soft limit as the Billing Limit Type. A soft limit warns you if the billing limit is reached. A hard limit prevents you from billing above the limit.

Enabling Contract Deliverable Notifications for Purchase Contracts

For purchase contracts, you can use the Deliverable Notifications tab to specify what contract deliverable notifications will be sent to what contact role. Available notifications are slightly different for each type of contract:

For contracts with purchase order deliverables, you can notify contacts with a specific role:

For contracts with blanket purchase agreement deliverables or contract purchase agreement deliverables, you can notify:

Enabling Contract Terms Authoring and Other Advanced Options

You can enable contract terms authoring and other advanced contract terms authoring options on the Advanced Authoring Options tab. These are described in the following table:


Option

Description

Enable Terms Authoring

Displays the Contract Terms tab in contracts and enables contract terms authoring using contract terms templates from the Contract Terms Library. You must set up the content of the library from the Terms Library work area before you can take advantage of this feature.

Note

When this option is disabled, contract authors can attach contract terms along with other supporting documents.

Enable Risk Management

Enables the entry of contract risks.

You must set up contract risks selecting the Manage Contracts Risks task in Oracle Fusion Functional Setup Manager.

Enable Interactions

Enables the logging of interactions with customers, employees, and other parties in the contract. Interactions include meetings, phone calls, and e-mail notifications.

Enable Related Contracts

Makes it possible for contract authors to relate contracts to each other.

Key Contract Type Settings for Different Kinds of Contracts: Examples

This topic provides examples of key contract type settings for different kinds of enterprise contracts, including employment agreements, purchase contracts, purchase agreements, and sales contracts with project work.

Employment Agreement

You want to create a standard employment agreement that can be edited during negotiations with a new employee.


Key Contract Type and Related Setups

How It Works

Key contract type setups:

  • Class: Enterprise Contract

  • Intent: Sell or Buy

  • Allow Lines option: Leave unselected

  • Select the Enable Terms Authoring option to permit the use of the contract terms template with the employment agreement.

In the Contract Terms Library, you create the contract terms template and set the template as the default for this contract type.

When you select the contract type, the contract terms template automatically populates the Contract Terms tab in the contract with the terms and conditions. You can edit them during the negotiation with the employee.

Purchase Contract

You want to create a purchase contract that can be used to create and monitor purchase orders within Oracle Fusion Purchasing.


Key Contract Type Setups

How It Works

  • Class: Enterprise Contract

  • Intent: Buy

  • Allow Lines option: Selected

  • You can add two types of lines:

    • Buy-intent Freeform

      For items not tracked by inventory.

    • Buy-intent Item

      For items tracked by inventory.

You enter the goods and services you are purchasing in contract lines. By creating contract deliverables for individual or multiple lines, you automatically create purchase orders in Oracle Fusion Purchasing. You can then use these deliverables to monitor the status of each purchase order from within the contract.

Purchase Agreement

You want to create a contract for future purchases which creates blanket purchasing agreements within Oracle Fusion Purchasing.

You want to create a blanket purchase agreement when you know the detail of the goods or services you plan to buy from a specific supplier and want to negotiate their price, but you do not yet know the detail of your delivery schedules.


Key Contract Type Setups

How It Works

  • Class: Purchase Agreement

  • Intent: Buy

  • Allow Lines option: Selected

  • You can add two types of lines:

    • Buy-intent Freeform

      For items not tracked by inventory.

    • Buy-intent Item

      For items tracked by inventory.

By adding deliverables for one or more contract lines, you automatically create blanket purchase agreements in Oracle Fusion Purchasing. You can use the deliverables to monitor the status of the blanket purchase agreements from within the contract.

Enterprise Sales Contract with Project Work

You want to create a sales contract that governs the billing of items and services to projects in Oracle Fusion Projects.


Key Contract Type Setups

How It Works

  • Class: Enterprise Contract

  • Intent: Sell

  • Allow Lines option: Selected

  • You can add two types of lines:

    • Freeform, Project-Based

      For entering item not tracked in inventory.

    • Item, Project-Based

      For entering inventory items.

  • On the Advanced Options tab, leave the Contract Terms Authoring option unselected.

    Note

    While nothing prevents you from using the Contract Terms Library to author contract terms for sales contracts with project work, there is no functional link between the contract terms and the Oracle Fusion Projects application. This means that you cannot monitor the adherence of a project to the terms in the contract.

You add contract lines to specify the goods and services sold, specify the project they are billed to, and enter billing details. The fulfillment and billing of those items is tracked within Oracle Fusion Projects.

Setting Up Contract Types for Different Kinds of Contracts: Points to Consider

This topic explains how to set up contract types for different kinds of enterprise contracts.

Your contract type setup depends on the type of contract you are setting up. The main types are:

For these types of contracts, the key contract type settings are based on the following questions:

  1. Are you selling or buying?

    For Intent, you select either Sell or Buy.

  2. Are you buying or selling now or negotiating a long-term contract with terms, such as pricing, that will govern a future purchase or sale?

    For Class, select Enterprise Contract if you are buying or selling now. If you are negotiating a future purchase or sale, select one of the agreement classes, for instance Purchase Agreement for a future purchase.

  3. Does the contract involve the purchase or sale of specific items?

    If the contract involves the purchase or sale of specific items, then you can specify how those items are entered into contract lines by adding different line types to the contract type. Some line types permit contract authors to select items tracked in inventory; others permit the entry of any item as text, for example, for free-form services.

    Some of the line types support integration with other Fusion applications, for example, project line types support the billing of items through Oracle Fusion Project billing. Buy-intent lines allow the capture of pricing information and support integrations to purchasing systems to create POs or blanket purchase agreements.

The combination of answers to these questions result in the numbered cases in this figure and are described in the different sections of this topic. Some functionality is planned for a future release.

There are other special kinds of contracts where these questions are less relevant or do not apply. These include:

This figure details options for contract
type setup.

Note

* While full integration with sales applications is planned for a future release, you can create sales contracts as documents in the contract repository.

Customer Contracts

This section describes the settings for sell-intent contracts.

Case 3: Customer Contracts with No Lines

Use the following contract type settings to create simple sales contracts with no lines.


Purpose of Contract

Contract Type Settings

Simple customer contract with no lines.

  • Class: Enterprise Contract

  • Intent: Sell

  • Allow Lines option: Deselected

Case 4: Customer Contracts with Lines

The following table describes the key contract type settings for sell-intent contracts for items or services. In this release, you can add lines for selling items and services that are executed as part of a project, for example, project manufactured items or professional services. Lines for selling services and regular inventory-based tangible items are planned for a future release.


Purpose of Contract

Contract Type Settings

Sell items and services that are tracked and billed to one or more projects.

  • Class: Enterprise Contract

  • Intent: Sell

  • Allow Lines option: Selected

  • You can add two types of lines:

    • Freeform - Project Based

      For selling items not tracked in inventory.

    • Item - Project Based

      For selling inventory items.

  • On the Advanced Options tab, leave the Contract Terms Authoring option unselected.

    Note

    While nothing prevents you from using the Contract Terms Library to author contract terms for project contracts, there is no functional link between the contract terms and the Oracle Fusion Projects application. This means that you cannot monitor the adherence of a project to the terms in the contract.

Supplier Contracts

This section describes contract type settings for buy-intent contracts.

Case 5: Supplier Contracts Without Lines

The following table describes the key contract type setups for supplier contracts where you are negotiating purchase of items or services without specifying the actual items to be purchased.


Purpose of Contract

Contract Type Settings

Contract where you negotiate specific terms and conditions or a purchase without specifying the goods and services as contract lines. Contract authors can create a corresponding purchase agreement within Oracle Fusion Purchasing or another integrated purchasing application by adding a contract deliverable for the contract. You can use the deliverable to monitor the status of the agreement, but purchase orders are created and tracked in purchasing.

  • Class: Enterprise Contract

  • Intent: Buy

  • Allow Lines option: Leave unselected

Case 6: Supplier Contracts with Lines

The following table describes the key contract type setups for supplier contracts for immediate purchase of specific items or services.


Purpose of Contract

Contract Type Settings

Purchase goods and services. This type of contract makes it possible for contract authors to create purchase orders in Oracle Fusion Purchasing or another integrated purchasing application from individual contract lines by adding contract deliverables. You can monitor the status of each purchase order directly from the deliverables.

  • Class: Enterprise Contract

  • Intent: Buy

  • Allow Lines option: Selected

  • You can add two types of lines:

    • Buy-intent Freeform

      For items not tracked by inventory.

    • Buy-intent Item

      For items tracked by inventory.

Case 7: Contracts for Future Purchases Without Lines

This table describes the key contract type setups for future purchase contracts without lines.


Purpose of Contract

Contract Type Settings

Contract for future purchase without specifying the goods and services as contract lines.

  • Class: Purchase Agreement

  • Intent: Buy

  • Allow Lines option: Leave unselected

Case 8: Contracts for Future Purchases with Lines

This table describes the key contract type setups for future-purchase contracts with lines.


Purpose of Contract

Contract Type Settings

Create this type of contract when you know the detail of the goods or services you plan to buy from a specific supplier in a period, but you do not yet know the detail of your delivery schedules. You can use this type of contract, sometimes called a blanket purchase agreement, a standing order, or a blanket order, to specify negotiated prices for your items before actually purchasing them. Use this type of contract when you have negotiated volume discounts and want to create releases against these negotiated volumes, or when you commit to specific items, quantities, or amounts. You can issue a blanket release against a blanket purchase agreement to place the actual order (as long as the release is within the blanket agreement affectivity dates).

Contract authors can automatically create corresponding agreements in Oracle Fusion Purchasing or other integrated purchasing applications by adding contract deliverables and monitor the execution of those agreements from the deliverables.

  • Class: Purchase Agreement

  • Intent: Buy

  • Allow Lines option: Selected

  • You can add two types of lines:

    • Buy-intent Freeform

      To purchase items not tracked by inventory.

    • Buy-intent Item

      To purchase items tracked by inventory.

Special Contracts

This section describes the settings you want to use for partner agreements and for miscellaneous contracts.

Case 1: Partner Agreements

Use the following contract type settings for partner agreements in Oracle Partner Relationship Management.


Purpose of Contract

Contract Type Settings

Partner enrollment agreement

  • Class: Partner Agreement

  • Intent: Sell

  • You must enable contract terms authoring by selecting the Enable Terms Authoring option.

Note

Oracle Fusion Partner Relationship Management uses contract types only for applying contract terms templates with boilerplate contracts, so most of the contract type entries do not apply or have no effect.

Case 2: Miscellaneous Contracts

The following table lists the key contract type settings for nondisclosure, employment contracts, and other simple contracts.


Purpose of Contract

Contract Type Settings

Nondisclosure agreement or employment agreement

  • Class: Enterprise Contract

  • Intent: Sell

  • Allow Lines option: Leave unselected

FAQs About Contract Types

Why can't I delete a contract type?

You cannot delete a contract type after it is used to create a contract. However, you can enter an end date to prevent its use in future contracts.

Must I create contract types to author contract terms on purchase orders or sourcing documents such as RFQs?

If you want to author contract terms on individual purchase orders or other Oracle Fusion Sourcing documents, such as RFQs, you are not required to set up contract types. This is because no enterprise contracts are created. The documents themselves are the contracts. All setups to enable contract terms templates and contract terms authoring are done from within Oracle Fusion Purchasing and Sourcing applications.

Managing Contract Risks

How can I set up contract risk?

You can set up the list of contract risks by selecting the Manage Risks task from the Setup and Maintenance work area. Contract authors use this list during contract authoring to record contract risks.

Recording contract risks helps your organization prepare for potential problems. It does not affect contract processing.

Note

Risk names must be unique.

Enabling Different Levels of Contract Terms Editing During Contract Authoring: Explained

The level of editing a contract author can perform on contract terms depends on the privileges granted to them during security setup. This topic describes the different levels of editing privileges that system administrators can assign a contract author from the basic to the most advanced.

Privilege Levels and What They Permit

The following table lists the privileges which grant different levels of editing abilities from the basic to the most advanced. Each privilege adds additional authoring capabilities to the privileges before it, but the privileges are not cumulative. The contract author must also be granted all of the privileges below the level they need. For example, a contract author with a level 3 privilege must be granted the level 1 and level 2 privileges as well.


Level

Privilege

Description

1

Author Standard Contract Terms and Conditions

Restricts contract authoring to applying contract terms templates, validating the contract, and running Contract Expert when required. It includes the ability to change the template or attach the contact terms as a file.

2

Author Additional Standard Contract Terms and Conditions

Adds the ability to add, delete, and move the standard clauses and sections after the contract terms template is applied. This includes the ability to select alternate clauses.

3

Author Nonstandard Contract Terms and Conditions

Allows authoring of nonstandard terms and conditions in the contract. This includes editing standard clauses, creating nonstandard clauses, removing contract terms, and importing edits made offline in Microsoft Word.

4

Override Contract Terms and Conditions Controls

Adds the ability to edit protected clauses and delete mandatory clauses and sections in contract terms.

Setting Up Contract Text Search: Highlights

If you have implemented the Oracle Enterprise Crawl and Search Framework, you can enable text searches of contracts and their attachments from within the contracts application by running the following indexing schedules:


Indexing Schedule Name

Description

Enterprise Contracts

Indexes and enables text search on contracts created in Oracle Fusion Enterprise Contracts.

Purchasing Contracts

Indexes and enables text search in the POs and agreements within Oracle Fusion Purchasing.

Sourcing Contracts

Indexes and enables text search in the RFIs and other negotiation documents in Oracle Fusion Sourcing.

Contract Documents

Indexes and enables text search in documents attached to Oracle Fusion Enterprise Contracts.

Purchasing Contract Documents

Indexes and enables text search in documents attached to Oracle Fusion Purchasing POs and agreements.

Sourcing Contract Documents

Indexes and enables text search in the documents attached to Oracle Fusion Sourcing RFIs and other negotiation documents.

Running Indexing Schedules

The management of indexing schedules is fully described in the Managing Search with Oracle Enterprise Crawl and Search Framework chapter in the Oracle Fusion Applications Administrator's Guide.