Defining Supplier Contracts

This chapter provides an overview of Supplier Contract Management transactional procurement contract definition and discusses how to:

Create supplier contracts.
Adding purchasing contract documents.
Set up spend thresholds and run contract alert workflows.
Set up contract release processes.
Access related links for supplier contracts.

Understanding Supplier Contract Management Transactional Procurement Contract Definition

Supplier Contract Management provides easy access to contracts, enabling you to maintain transactional contract information and at the same time interface with the document authoring system. The transactional contract is a part of the overall PeopleSoft Procurement system that includes integrations with Strategic Sourcing and requests for quotes (RFQs) for contract creation.

You use supplier contract pages to perform Purchasing tasks for the contract, such as creating the contract, adding line items, and releasing contract quantities. Most features in the transactional procurement contract in the Purchasing application are also in Supplier Contract Management's Contract Entry component. And if, before you installed the Supplier Contract Management application, you had used the Add/Update Contract component in Purchasing to add contracts, those contracts are now available in the Contract Entry component of Supplier Contract Management.

In addition to performing traditional sourcing and purchasing transactions for a contract using Supplier Contract Management, you use the application to perform tasks unique to supplier contracts. Using the application, you can:

Access the document authoring system, where you can create and maintain related purchasing and ad hoc Microsoft Word documents.
Manage the life cycle of authored document statuses, versions, and amendments.
Define contract agreements (deliverables) at the contract header level and at its line-item level so that the system uses the related clauses in authored documents.
Update and monitor contract header and line agreements to ensure compliance to the transactional contract.
Use transactional metrics to track and analyze supplier performance.
Syndicate transactional contracts to remote systems.
Notify buyers when contracts expire, exceed their maximum monetary amount, or exceed their maximum spend threshold monetary amount.

Creating Supplier Contracts

This section discusses how to:

Define supplier contract information.
Add contract line information.
Create supplier contract releases.
Review supplier contract releases.
Access syndication features.

Pages Used to Create Supplier Contracts

Page Name	Object Name	Navigation	Usage
Contract	CS_CNTRCT_HDR	Supplier Contracts, Create Contracts and Documents, Contract Entry, Contract	Create supplier contract information.
Create Release	CS_CNTRCT_SCHEDULE	Supplier Contracts, Create Contracts and Documents, Contract Entry, Create Release	Create supplier contract release information.
Review Releases	CNTRCT_RLS_HIST	Supplier Contracts, Create Contracts and Documents, Contract Entry, Review Releases	Review supplier contract release information.
Syndication	CS_CNTRCT_SNDCT	Supplier Contracts, Create Contracts and Documents, Contract Entry, Syndication	Access syndicating features.

Defining Supplier Contract Information

Access the Contract page.

Use the Contract page to enter header and line information for the transactional procurement or voucher-based contracts. When you add a contract, the system uses the contract process option type to determine the functionality for the transactional contract.

This section describes the differences between the Add/Update Contract component in Purchasing and the Contract Entry component in Supplier Contract Management. Most of the documentation for defining and using transactional procurement contracts is in the Using Voucher and Order Contracts chapter in the PeopleSoft Enterprise Source-to-Settle Common Information PeopleBook.

See Using Voucher and Order Contracts.

Status

Select the status of the contract. Values are: Approved, Canceled, Closed, On-Hold, and Open.

When you create a contract, the status appears by default as either Open or Approved based on the settings for the user on the User Preferences - Contracts page. Only contracts with an Approved status are eligible to have releases created against them or to be referenced by other transactions. You can only change contracts in Add mode or if they are in an Open status.

You cannot set the status to Closed or Canceled if open lines or staged releases exist against the contract. If a contract's status is returned to Open, you cannot use purchase orders that reference the contract until the contract is approved again. When vouchers exist for a contract and the contract is closed, all vouchers eligible for closure are also closed.

Eligible vouchers include those that have not been posted, paid, matched, or budget checked. If the contract is reopened later, you can create releases for these vouchers again and the system will assign a new voucher ID. If the contract originated from a request for quote and the contract is canceled, you have the option to return quantities to the request for quote.

Add a Document

After you save the Contract Entry page, click this button to access the Supplier Contract Management document authoring system, where you can create a document and link it to this purchase order. This document is different than the PeopleSoft Purchasing document inquiry, which enables you to cross-reference documents, such as requests for quotes, or requisitions that are associated with a purchase order.

If a document already exists for the contract, click the Maintain Document button to access the document.

Authored Document

Use this section to view and manage authored documents associated with the contract. This section appears on the Contract Entry page after you create a document for a transactional contract. You click the Add a Document button to create the document.

Authored Status	Displays the current document status. Values are: Draft: The document has been generated and is in an initial Draft status. The system displays the latest version of the draft. In Collab (pending collaboration): The document has been routed for collaboration, but all collaborators have not responded. Collabed (collaborated): The document has been reviewed by all collaborators and the document administrator or owner has reviewed and updated the document based on collaborator reviews. Pending (pending approval): The document has been routed using workflow approval. Approved: The current document has been approved internally and is available for supplier dispatch for final signatures and execution. Dispatched: The current documents have been dispatched to the supplier and are waiting for final signatures. Executed: The current document has been executed. The system preserves the executed version and enables the contract for amendments. When an amendment is first initiated, the authored status cycles begins again starting with Draft and the amendment number is shown. Previous versions, including current executed contract, can be viewed by clicking the Maintain Document button. Pending Review (collaborated, pending review): The document has been reviewed by all collaborators and is awaiting a final review by the document administrator or owner. Note. The authored status and transactional contract status are independent of each other because the timing of changing a transactional contract and the document life cycle are different. Note. The system does not update the authored status on the Contract page until the page is closed and reopened.
Version	Displays the current version of the document.
Amendment	Displays the current amendment number for the contract. A document amendment is an update to an existing executed document and is a feature in Supplier Contract Management. See Creating and Maintaining Amendments for Supplier Contracts.
Maintain Document	Select to access the contract document associated with this contract. If a document does not yet exist for the contract, the system displays the Add a Document button. See Managing Document Life Cycles.

Header

Use this section to define basic information for the contract. The system uses the contract process option type to determine the functionality for the transactional procurement contract. This section describes only the differences between the Supplier Contract Management Contract Entry page and the standard functionality of the Add/Update Contract component in the Purchasing application.

For detailed information about the transactional procurement contract functionality, use this link:

See Creating Contract Headers.

Administrator

Select the administrator the system uses as a default value for the authored document when it generates the document. The system also uses this field for workflows that are associated with the transactional document. This field is called the Buyer field in the Add/Update Contract component of the Purchasing application, where it serves the same function.

Dispatch Method

This field and the corresponding Dispatch button are not available in the Supplier Contract Management Contract Entry component. Dispatching is a part of managing the document life cycle.

See Dispatching Documents.

Contract Agreement

Click this link to access the Contract Header Agreement Assignments page, where you can establish agreements for the contract. Contract agreements represent external or internal deliverables. You can assign agreements at the header level or at the line-item level. Use this link to assign header-level agreements.

Click the Contract Agreement button in the Lines grid area to add contract agreements for individual items at the line level.

See Assigning Contract Header Agreements.

Order Contract Options

This section displays values that apply to general, purchase order, recurring purchase order voucher, and release to single purchase order only contracts.

Voucher Contract Options

This section displays values that apply to general, prepaid voucher, prepaid vouchers with advance purchase order, recurring vouchers, and recurring purchase order voucher contracts.

Advanced PO Information Section

Use this section to enter information when the process option type of the purchase order is for prepaid vouchers with advance purchase orders.

Purchase Order Information

Use this section to enter information when the process option type of the purchase order is for releasing to a single purchase order and recurring purchase order vouchers.

Add Items From

Use links under this label to access other methods for adding items to the order lines. Click the Catalog link to access the Order by Catalog page. You can add items to the contract from the catalog.

Click the Item Search link to access the Item Search Criteria page, where you can define attributes for locating items.

See Also

Creating Contract Headers

Adding Contract Line Information

Access the Details tab in the Lines grid.

Use this grid area and its tabs to define items you want to include in the contract. Along with items, you define a variety of details, including schedules, release amounts and quantities, and item details.

Using the Supplier Contract Management application, you can also assign agreements for contract line items. Contract agreements represent external or internal deliverables. Click the Contract Agreement button in the Lines grid area to add contract agreements for individual items at the line level. The button is represented by a blue hand-shake symbol.

See Creating Contract Line Information.

Creating Supplier Contract Releases

Access the Create Release page.

Use this page to specify contract lines for release and the release interval between purchase orders or vouchers, generate a schedule for the series of purchase orders or vouchers, and create the releases. The releases and available options are based on the specified business unit.

The Create Release tab does not appear if the contract process option type is not a Purchase Order type and the contract is syndicated. The system prevents releases from the parent system against contracts that use the other process option types.

Reviewing Supplier Contract Releases

Access the Review Releases page.

Use this page to view the staged purchase order and voucher releases for this contract. You can also make changes to the staged releases.

The Review Release tab does not appear if the contract process option type is not a Purchase Order type and the contract is syndicated. The system prevents releases from the parent system against contracts that use the other process option types.

Accessing Syndication Features

Access the Syndication page.

Use this page to syndicate contracts to remote systems. If the Syndication page doesn't appear, use installation options to indicate that syndication should be enabled. To access the options, select: Supplier Contracts, Supplier Contract Setup, Installation Options, Supplier Contract Management.

Adding Purchasing Contract Documents

This section provides an overview of purchasing contract document creation and discusses how to:

Create purchasing contract documents.
Copy existing purchasing contract documents.
Adding requisition documents and wizard responses.

Understanding Purchasing Contract Document Creation

The integration of Supplier Contract Management with Purchasing makes it possible for contract specialists to work directly with documents from within the purchase contract. This section describes how you add and copy purchase contract documents.

Note. Tasks described in this section are similar to many of those described in the Managing Document Life Cycles chapter which describes the creation of both purchasing contracts and ad hoc source documents. You should also refer to that chapter for many of the details for adding , copying, and importing documents.

See Adding Authored Documents.

Purchasing Contact Document Creation

You can create a document for a purchasing contract from within the Contract Entry component by clicking the Add a Document button on the Contract page. You can create a document for a contract as long as a document does not exist. After creating the document, you can maintain it from within the Document Management component which is also accessible from the Contract Entry component.

To create a purchasing contract document:

Select Supplier Contracts, Create Contracts and Documents, Contract Entry.

Enter contract information and save the contract.
Click the Add a Document button on the Contract page.

The system displays the Create Document page and populates several fields on the page using values from the contract. If you create the contract using a request for quote or a Strategic Sourcing event, and the contract is related to one or more requisitions that have a request-related document, then an intermediate page appears that enables you to select the requisition document that you want to associate with the purchasing contract document. This enables you to copy forward any appropriate requisition-document wizard responses that you want to be used as default value responses in the purchasing contract document wizard. Any matching responses, based on wizard variables between the requisition request document wizard and the wizard associated with the configurator of the contract document, are copied forward as default values for the contract specialist.

This process is described in the Adding Requisition Documents and Wizard Responses section.

See Adding Requisition Documents and Wizard Responses.

Note. If you do not access the contract through the Contract page, you can use the Document Management page to access the Add a Document page. Using this page, you select Purchasing Contract as the contract type, then select the contract to which you want to add a document. You must create the purchasing contract before adding the document.
Enter basic information about the contract.

If you are using document types, you can further refine the document's structure by selecting a document type. Also, instead of creating a document, you can import a document that was created outside of the system. After importing the document from this page, the system marks the document as an imported document and displays the Document Management page. You can use the document authoring system to manage the life cycle of the imported document.

Note. Ensure that the administrator you select for the contract, has also been defined as a document administrator using the User Preferences page.
Click the Create Document button.

The Document Management page appears with the document in a Draft status.

Purchasing Contact Document Copying

When you copy a transactional contract using the Contract Entry component, the system provides an option to copy the latest document along with the copied transactional contract. In this case, the new contract document maintains most of the copied content and edits, but in addition, the system runs a Refresh process to replace any old bind variables, such as vendor information or list of items, from the old contract with new values from the new contract created using the Contract Entry component.

Note. If you are using document types, the system creates the new contract with the same document type as the original contract document.

When you copy a contract, and a document exists for the contract that you are copying from, when you save the new contract, the system displays a page prompting you to copy the document along with the new contract. If you click Yes, the system automatically creates the new contract document, and refreshes the binds. If you click No, the system does not copy the document at this time. If you want to copy the document later, use the process described in the next section, Ad Hoc and Purchase Order Contract Document Copies.

To copy a purchase order contract document:

Determine the requirements of the contract you want to create and locate an existing contract with similar requirements.

Ensure the contract is the same type of contract that you want to create, such as a general order or purchase order contract, has already had a document created for it, and that the document uses the same document type that you want to use to create the contract document.
Create the contract by selecting Supplier Contracts, Create Contracts and Documents, Contract Entry, and select the Add a New Value tab.

Ensure that the contract you are copying is the same type as in the Contract Process Option field.
Click the Add button.

The Contract page appears.
Click the Copy from Contract link.
Complete the search criteria, and click the Search button.

The results of the search appear in the Select Contract grid box.

Note. You must select a contract from the results list to enable the system to copy a contract. If you enter a contract ID without performing a search, you can create a new contract, but the system does not provide you the opportunity to copy its document.
Select the contract you want to copy, and click OK.
Update the contract information, and click the Save button.

The system displays a prompt page indicating that a document exists with the original contract and prompts you to copy the contract document or create the document from a configurator or by copying the document later.
Click the Yes button.

The Create Document page appears.
Enter a document description, and click the Create Document button.

The document description is a default value from the transactional contract, and is required, so if you do not enter a value on the transactional contract, then you must enter it on this page. The system creates the document by copying the original contract, then updates any bind values from the new transactional contract.

Using Wizard Responses from Requisition Documents

Purchasing contracts can originate through a requisition process. Before creating the purchasing contract using this process, requestors can define information that will eventually be available for use with the contract document. Using requisition documents, requestors can define a related document and wizard responses to capture additional information for a requisition before it becomes a contract. While the requisition document itself does not feed into the contract document, the wizard responses associated with it can when you create the contract document. In addition, you can relate the requisition document to the contract document when you create the contract document.

When you set up a document type to use only with a purchase order requisition, you can specify that the system use this type when a requestor creates a PeopleSoft eProcurement or Purchasing requisition. In this case, along with the requisition, the requestor can generate a supplemental request document by launching a wizard that captures needed information pertaining to the contract request.

Using wizard responses, the requestor can provide the required information in the supporting document. After the requisition is awarded to a contract by means of an RFQ or Sourcing event, the contract specialist can reference the original request document and make use of any wizard responses within that request document to help drive the content and fill in required data on the actual contract. This is possible when you create a contract document and a related requisition exists. The system prompts the contract specialist to select an associated requisition that, in turn, copies the wizard responses for the requisition document as default values for the new contract document wizard responses.

Note. Requisition documents are ad hoc documents that include document contents based on a configurator and responses to wizard questions. The document type you define for use with requisitions determines user capabilities, such as editing the requisition document. Within Purchasing and eProcurement requisition components, you can also use the Attach to Requisition button to attach the current generated document back to the requisition along with your comments. Attaching the document back to the requisition is at a point in time, and the system does not automatically reattach any further changes to the requisition document.

Requisition documents are based on document types that enable the use of a purchase order requisition to create the document. Documents of this type must be associated to a requisition ID and business unit. You use Supplier Contract Management installation options to set the use of document types and purchase requisitions. Because requisitions are dependent on a document type, you must set the system to use document types, then you can select to use document types with purchase requisitions. As part of the setup, you define a wizard that captures additional information for the requisition and that can be used later in the purchase order contract.

Use these steps to add a requisition document:

Ensure that these Supplier Contract Management installation options are selected:
- Use Document Type.
- Use with PO Requisition.
Establish question groups and wizards for use with requisition document types.

This series of questions or question groups should relate to the kind of contracts for which you are creating the document type.
Create a document configurator that uses the wizard that you defined for requisitions.

The document configurator also provides the content of the document, such as sections and clauses that provide structure for the wizard responses.
Create a document type.

The document type should be an ad hoc type and the Use Only with PO Requisition check box should be selected. You can either define a specific configurator or use a configurator selector wizard to select a configurator.
Create a requisition in PeopleSoft Purchasing or eProcurement.
Click the Add Request Document button.

The system accesses the Add a Document page in Supplier Contract Management. This page appears with the business unit and purchase requisition and a description for the requisition document. You can change the document type that the system uses as a default value. You can also select to import and copy a document to attach to the requisition.
Click the Add a Document button and complete the wizard questions.

If you are using a configurator selector wizard, the system launches that wizard before launching the document creation wizard. When you finish the questions, the system generates the document and the Document Management page appears. You can view the document, refresh, or re-create it. Other actions available for the document depend on information defined for the document type.
Optionally, click the Attach to Requisition button in the Document Management page and enter your comments about the document.

This attaches the current document along with your comments to the requisition similar to you manually attaching the document to the requisition. Your comments appear under the Edit Comments link for the requisition. You can only attach one version of the document to the requisition at one time.

After you create a requisition document, you can update the responses to the wizard using the Modify Request Document button from within Purchasing or eProcurement requisitions.

Pages Used to Add Purchasing Contract Documents

Page Name	Object Name	Navigation	Usage
Contract	CS_CNTRCT_HDR	Supplier Contracts, Create Contracts and Documents, Contract Entry	Create purchasing contract documents.
Create Document	CS_DOC_CREATE	Supplier Contracts, Create Contracts and Documents, Contract Entry Click the Add a Document button on the Contract page.	Create purchasing contract documents.
Copy Document	CS_DOC_COPY_SEC	Supplier Contracts, Create Contracts and Documents, Contract Entry After copying a transactional contract and indicating that you want to copy another contract's document, click the Create Document button on the Create Document page.	Copy purchasing contract documents to create a new document.
Maintain Requisitions	REQ_FORM	Purchasing, Requisitions, Add/Update Requisitions Select a requisition for which you want to create or maintain a document, and click the Add Request Document or Modify Request Document button on the Maintain Requisitions page.	Add requisition documents.
Create Requisitions	PV_REQ_HDR_DEFAULT	eProcurement, Requisitions, Create Requisitions Create and save a requisition, then click the Add Request Document button.	Add requisition documents.
Edit Requisitions	PV_REQ_FORM	eProcurement, Manage Requisitions Select to edit a requisition that already has a requisition document, then click the Modify Request Document button on the Edit Requisition page.	Add requisition documents.

Creating Purchasing Contract Documents

Access the Contract page.

Use this page to create a document for a purchasing contract from within the Contract Entry component. You can create a document for a contract in any status; however the system warns you that in some cases, it might not be appropriate to add a document.

Select a document administrator in the Administrator field. Administrators must be defined using the User Preferences page. Click the Add a Document button to create the purchasing contract document.

The Create Document page appears.

Use this page to define document attributes for the purchasing contract document. If you want to access a document for another purchasing contract, click the Return to Document Search link and select the contract ID.

Select a purchasing contract document type in the Document Type field. Only document types that have been defined for use with purchasing contract sources are available in the list. This is a required field and appears when document types have set for use on the Installation Options page. When you select a document type, the Configurator ID field appears depending on how the document type is defined.

If the document type uses a specific configurator, that configurator becomes the default value. If you have been authorized to override configurator values on the User Preference page, you can change this value. If not, you cannot change the value.

If the document type uses a configurator selector wizard, click the Configurator Selector button to run the selector wizard. After you complete the wizard, the system populates the field with the appropriate configurator. If the document type is defined to automatically create a document, the system creates the document when you complete wizard without returning to this page.

Description	Enter a description for the purchasing contract document. The Description field is required to create the document.
Use Wizard Responses from Document	Select to use responses from wizard responses contained in another document. This saves you time in responding to questions and also enables you to change answer when needed. When you select this value the Import Document button is low-lighted.
Select Document	Click to access search criteria for locating another purchasing contract document that contains responses for this wizard.
Create Document	Click to launch the document generation process. If you are using a document creation wizard with the contract, the system launches the wizard.
Import Document	Click to import a legacy purchasing contract document. See Importing Contract and Ad Hoc Documents.

See Also

Adding Authored Documents

Copying Existing Purchasing Contract Documents

Access the Create Document page.

When you save the newly copied purchasing contract, the system prompts you to also copy the document that exists for the contract you copied. This page appears when you select Yes to copy the existing document also. The page displays the purchasing contract that you copied to create the current contract. The Contract ID field displays the contract you created and the one for which you are creating the document.

Note. You can also copy a purchasing contract document from within the Document Management component; however, you can't do it in conjunction with copying a purchasing contract.

Click the Create Document button to launch the generation process. The fields and the behavior of this page is similar to ad hoc and purchasing contract document creation from the Document Management component.

Adding Requisition Documents and Wizard Responses

Access a requisition page.

After creating a request and saving a requisition, you can click the Add Request Document link on the Maintain Requisitions page in PeopleSoft Purchasing to add a support document for the requisition. A similar link also exists for requisitions created using PeopleSoft eProcurement requisition pages. Using the links, you can access the document authoring system where you can select a document type and launch a wizard for use with the requisition. After you finish the wizard questions, the system creates the document using your responses. You can also modify the document using requisition pages in Purchasing and eProcurement.

See Understanding Purchasing Contract Document Creation.

To maintain the document in Purchasing, click the Modify Request Document link. When requisitions are approved from eProcurement, those requisitions are also available with the requisition document on the Purchasing Maintain Requisition page. When a requisition from either eProcurement or Purchasing has been awarded as a contract by means of a RFQ or Souring event, the system can copy the wizard responses for the requisition forward to the newly generated contract document for any matching wizard values which serves as a starting point for the contract specialist.

Note. After you create a requisition within eProcurement, you can access the document for maintenance purposes using the Add a Requisition link.

When you click the Add a Requisition link from within either eProcurement or Purchasing, the Add a Document page appears along with the requisition ID and business unit.

Use this page to add a document for a PeopleSoft Purchasing or eProcurement requisition request. The page appears with most of the fields populated using default values from the requisition. You can override some of the values, but the Source Transaction field value is always Ad Hoc.

You can also create requisition documents starting from within Supplier Contract Management for an existing requisition. The application provides a link to requisitions and business units through which you can search for requisitions.

See Creating Ad Hoc Documents for Requisitions Using Document Management.

Document Type	Select the type of requisition document that you want to create. This is a required field. Values available for the field are those document types that have the Use Only with PO Requisitions check box selected on the Document Type page.
Ad Hoc ID	Enter an ad hoc ID. If you setup the document type to use automatic numbering, NEXT appears in the field. When you click the Add a Document button, the system automatically assigns a number.
Add a Document	Click to either launch a wizard which guides you through a series of questions and then creates the document, or to access the Create Document page. Using the page, you can define attributes for the document, then click the Create Document button to create the requisition document.
Copy a Document	Click to copy a document. See Copying Existing Purchasing Contract Documents.

Setting Up Spend Thresholds and Running Contract Alert Workflows

This section provides an overview of spend thresholds and contract alerts and discusses how to:

Define contract header spend thresholds.
Define contract line item spend thresholds.
Run contract alert workflow processes.

Understanding Spend Thresholds and Contract Alerts

A spend threshold is a specific monetary amount for a contract or contract item. Using the Spend Threshold feature, you can define the threshold and then notify users when spending on a contract crosses the threshold amount. In addition to defining a spend threshold, Supplier Contract Management provides the Contract Alert Workflow component to notify buyers when spend thresholds have been reached.

An example of using a spend threshold might be when a contract includes a line item that has a price discount based on meeting specified spending thresholds over the life of the contract. The line amount might be initially set at 100,000 USD representing an estimated amount of business the buyer expects to do under that contract for the year. The base price of the item is 10.00 USD.

The supplier has agreed that after the buyer purchases more than 80,000 USD worth of the item under that contract (8,000 units), the price of the item will decrease to 9.00 USD each. The buyer knows that he is going to buy more widgets next year when he renews the contract. As the contract nears expiration, the buyer wants to know if he is approaching the 8,000 unit discount trigger so that he can accelerate purchases to take advantage of the lower price. He sets up the system to notify him when contract spending on that line item reaches and exceeds 75,000 USD. At the point when 70,000 USD is exceeded for the contract (based on released amounts against the contract), you can set a workflow notification that is triggered for the buyer and administrator of the contract to alert them of the event.

The spend threshold is available at the contract header and contract line levels, and the notification is a standard PeopleSoft workflow event that is triggered through the application engine program.

In addition to the worklist, the system can email notifications. Email notifications are triggered using the same conditions as workflow notifications. The decision to create a worklist, send an email, or to do both depends on the user-profile workflow-routing preferences.

A single notification is sent when the amount reaches the threshold. If you change the spend threshold amount on the header or any lines, the system deletes any existing notifications on the header or the changed lines and reevaluates the threshold when you run the application engine job again. This action enables you to keep increasing the spend threshold amounts and to be further notified as necessary.

If you are using a worklist, you can select a link to go to the Contract Entry component. If the notification is triggered by a line amount, the page displays that line in red above the line grid. If you change the threshold amount when accessing the page through the worklist, the system deletes the existing notification. You can also set the worklist entry to Mark Worked. This value does not delete the existing worklist entry; rather, it makes the entry invisible to the user.

To set up the system to process contract-level spend threshold amounts:

Access the Contract page.
Click the Thresholds & Notifications link.
Identify the buyer, and select to notify the buyer when the spend threshold is reached.
Define the threshold amount.

Note. The system also tracks the released amounts on the Thresholds & Notifications page.
Click OK.

You can set up spend threshold amounts for both the contract and line items, or you can use just the line-item spend threshold to trigger workflow events for a particular item on a contract.

Note. The system notifies the user ID that appears in the Administrator field on the Contract page at both contract and line-item level. The Administrator appears as the buyer in the Buyer field at the contract level. You can change that field. At the line level, you can use the Administrator field to update the user ID that the system notifies.

To set up the system to process line-item level spend threshold amounts:

Access the Contract page.
Select the Spend Threshold tab.
Select to notify on spend threshold and define the threshold amounts.
Click Save.

You don't have to use the Thresholds & Notifications page to define line items, but contract totals for released line amounts appear on the page.

Pages Used to Set Up Spend Thresholds and Run Contract Alert Workflows

Page Name	Object Name	Navigation	Usage
Contract	CS_CNTRCT_HDR	Supplier Contracts, Create Contracts and Documents, Contract Entry, Contract Select the Spend Threshold tab on the Contract page.	Create supplier contract information.
Thresholds & Notifications	CNTRCT_NOTIFY_SEC	Supplier Contracts, Create Contracts and Documents, Contract Entry, Contract Click the Thresholds & Notifications link on the Contract page.	Define contract head spend thresholds.
Create Contract Alert Workflow	CS_CNTRCT_ALERT_WF	Supplier Contracts, Create Contracts and Documents, Contract Alert Workflow	Run contract alert workflows to support spend threshold notifications. Notify buyers when their contracts have expired or reached their maximum monetary amounts.

Defining Contract Header Spend Thresholds

Access the Thresholds & Notifications page.

Use this page to set the spend threshold amount and the number of days before the contract expiration to notify the buyer or administrator. Also use this page to send notification that the contract maximum is exceeded and specify which buyer to notify. The system uses this information as a business process for setting up PeopleSoft PeopleTools workflow to route notifications to buyers when the contract limits have been met. This page is not used by voucher contracts.

Notify on Expired/Exceeds Max (notify on expired/exceeds maximum)	Select this check box to notify the identified buyer when a contract expires or reaches the maximum amount on the contract.
Notify on Spend Threshold	Select this check box to notify the buyer when a contract reaches or exceeds the spend threshold.
Buyer	Select a buyer (administrator) to whom the system should send notifications when a contract expires, exceeds the maximum amount, or reaches the spend threshold. The default value for the field is the buyer defined on the Contract page.

Expiration Date Notification

Use this section to define expiration information.

Expire Date	This field appears by default from the Contract page, or you can enter the expire date on this page and the system will update the expire date on the Contract page.
Notify Days Before Expire	Enter the number of days before a contract expires that you want the system to notify the buyer.
Notification Date	The system determines and displays the expiration notification date. When a contract reaches this notification date, the system notifies the identified buyer that the contract is about to expire. The buyer receives a workflow email notification.

Maximum Amount Notification

Use this section to set up amounts that trigger notifications to the buyer when the total contract released amount is either within the specified amount or percentage of the maximum contract amount.

Amount Less than Maximum	Enter the amount below the contract maximum amount for which you want the system to notify the buyer that the contract is about to reach its maximum amount.
Percent Less than Maximum	Enter the percentage below the contract maximum amount for which you want the system to notify the buyer that the contract is about to reach its maximum amount.
Notification Amount	The system determines and displays the notification amount. When a contract reaches this notification amount, the system notifies the identified buyer that the contract is about to exceed the maximum limit amount. The buyer receives a workflow email notification.

Spend Threshold Notification

Use this section to enter the amount at which the system sends a notification to the buyer that the contract amount has reached or exceeded the spend threshold. The system totals the individual line item amounts to arrive at the total amount for the contract. The buyer is only notified once when this threshold is reached.

See Understanding Spend Thresholds and Contract Alerts.

Amount Summary

Use this section to update and review contract amounts.

Maximum Amount	Enter a value to specify a total amount that this contract should not exceed. The total released amount of all lines plus the amount released for open items must not exceed this amount. This value is expressed in the contract header currency.
Total Line Released Amount	Displays the total released amount of the contract, which is the open item amount plus the total of the line amounts. This amount is updated during the PO Calculations process, online purchase order creation, and the PeopleSoft Payables Batch Voucher process when the contract is referenced. This amount is expressed in the contract header currency.
Open Item Amount Released	Displays the amount that is released for open items in an open item contract. This information appears only if the contract is referenced on a purchase order using open item referencing. You do not need to reference an open item contract. The system can do it for you during the PO Calculations process. This amount is updated during the PO Calculations process or online purchase order creation. This amount is expressed in the contract header currency.
Total Released Amount	Displays the total amount that has been released for this contract.
Remaining Amount	Displays the amount remaining on this contract (maximum amount - open item amount released - line amount released = remaining amount). This amount is expressed in the contract header currency. This amount appears only if the maximum amount is greater than zero.
Remaining Percentage	Displays the percentage of the amount remaining on this contract.

Defining Contract Line Item Spend Thresholds

Access the Contract Entry page: Spend Thresholds tab.

Use this page to define spend threshold amounts and to indicate that users should be notified when the spend threshold is reached. You run the Contract Workflow Notification (CS_CNTRCT_WF) process to notify buyers when their contracts exceed spend thresholds.

Notify on Spend Threshold	Select this check box to notify the buyer identified in the Administrator field when this contract line item has reached its spend threshold.
Threshold Notification Amount	Enter the spent amount at which you want to notify the buyer identified in the Administrator field. When the released amount for this contract line item reaches or exceeds this amount, the system notifies the buyer one time.
Total Line Released Amount	Displays the total amount that has been released for this contract line item.

Running Contract Alert Workflows Processes

Access the Create Contract Alert Workflow page.

Use this page to define criteria for running contract alerts. You can select to process only expired contracts and contracts that have exceeded their monetary amount, contracts that have exceeded their spend thresholds, or both.

Using the Spend Threshold Workflow Selection Criteria group box, you define how you want to process alerts when you select to run spend threshold alerts. You can select only one option. The system checks for spend thresholds that have been reached for contracts and for line items and sends an alert.

Expired/Exceeds Max Workflow (expired contract/exceeds maximum monetary amount workflow)	Select to send alert workflow messages for all contracts that have expired or that have exceeded their maximum monetary amount. The system sends alerts to buyers when a contract has expired or is over the maximum amount. This alert workflow is run for all contracts and setIDs.
Spend Threshold Workflow	Select to notify buyers when contract spend thresholds have been reached. When you select his check box, you must then define the setID for which you want to run the workflow.
All Contracts	Select to run the spend threshold workflow to notify buyers when the spend threshold has been reached for all contracts.
Contract ID	Select a contract for which you want to send spend threshold notifications. Notifications will be sent for any spend threshold at the contract header or line level.
Contract Begin Date Range	Enter a contract start and end date range for contracts that you want to include in the spend threshold workflow alert. The system will include contracts with begin dates within this range for the alert. When you run the workflow alert, the system checks for spend thresholds that have been met in the contracts and sends a notification to the buyer.

Setting Up Contract Release Processes

This section provides an overview of the contract release process and discusses how to:

Stage contract releases to create purchase orders.
Source purchase orders automatically.
Run the Purchase Order Calculations process.
Create purchase orders using staging table data.
View and update purchase orders in staging tables.

Understanding the Contract Release Process

Supplier Contract Management uses the purchase order sourcing business process to stage and source contract releases into purchase orders and vouchers. The process creates purchase orders from contract item requests loaded to PeopleSoft Purchasing staging tables.

See Also

Using Purchase Order Sourcing

Pages Used to Set Up the Contract Release Process

Page Name	Object Name	Navigation	Usage
Release Parameter	RUN_PO_POCNTRCT	Supplier Contracts, Contract Release Processes, Stage Contract POs	Stage contract releases to create purchase orders.
PO Auto Sourcing - Objectives	RUN_PO_AUTOSRC1	Supplier Contracts, Contract Release Processes, PO Auto Sourcing	Source purchase orders automatically.
PO Calculations - Run Controls	RUN_PO_POCALC1	Supplier Contracts, Contract Release Processes, PO Calculations	Run the Purchase Order Calculations process.
PO Creation - Create PO	RUN_PO_POCREATE	Supplier Contracts, Contract Release Processes, PO Creation	Create purchase orders using staging table data.
Sourcing Workbench	PO_SRC_ANALYSIS	Supplier Contracts, Contract Release Processes, Sourcing Workbench	View and update purchase orders in staging tables.

Staging Contract Releases to Create Purchase Orders

Access the Release Parameter page.

Use this page to enter the selection criteria for the PO Calculations process (RUN_PO_POCNTRCT) and to run the process.

Sourcing Purchase Orders Automatically

Access the PO Auto Sourcing - Objectives page.

Use this page to select the sources for generating purchase orders to configure the Automatic Purchase Sourcing process (PO_AUTO_SRC) to run multiple jobs in sequence for the same set of staging records.

Running the Purchase Order Calculations Process

Access the PO Calculations - Run Controls page.

Use this page to create a tentative purchase order header, line, and schedule to build final purchase orders. You can enter the run control criteria for the PO Calculations process (PO_POCALC) and run the process.

See Also

Running the PO Calculations Process

Creating Purchase Orders Using Staging Table Data

Access the PO Creation - Create PO page.

Use this page to enter the selection criteria for the Create Purchase Orders process (PO_POCREATE) and to run the process. You can also define creation options, including calculating purchase order line numbers, holding from further processing, and enabling dispatch when the purchase order is approved.

Viewing and Updating Purchase Orders in Staging Tables

Access the Sourcing Workbench page.

The Sourcing Workbench component provides you with a view of the results of each sourcing step. The Sourcing Workbench enables you to view staged rows, along with any errors accompanying them. You can also select sourcing criteria, view the rows of data on the PO_ITM_STG table, and access pages to change the recommended vendor, change quantities sourced to each vendor, or correct errors.

See Also

Using the Sourcing Workbench

Accessing Related Links for Supplier Contracts

Related links enable access to Purchasing features that can help you create and maintain contracts in Supplier Contract Management. This section lists the pages used to access related links for supplier contracts.

Pages Used to Access Related Links for Supplier Contracts

Page Name	Object Name	Navigation	Usage
Vendor - Summary	VNDR_ID1_SUM	Supplier Contracts, Related Links, Vendor	Define vendor information, including vendor name and short name, classification, status, persistence, withholding and value-added tax eligibility, relationships with other vendors, duplicate invoice checking settings, and additional elements required for reporting to government agencies. See Entering Vendor Identifying Information.
Category Definition	CATEGORY_TBL	Supplier Contracts, Related Links, Item Categories	Define item categories that can provide transaction information for requisitions, requests for quotes, contracts, and purchase orders. Item categories also serve as the organizational unit for item catalogs. Item catalogs are a collection of item categories. See Defining Purchasing Item Categories.
Define Items - General	INV_ITEMS_DEFIN1	Supplier Contracts, Related Links, Define Item	Define an inventory item at the setID level. This definition should include information about the item such as its classification, substitutes, status, and dimensions. See Defining Items by SetID.
Purchasing Attributes	ITM_TBL_PUR	Supplier Contracts, Related Links, Purchasing Attributes	Select to enter basic purchasing information for an item. This information can include item attributes, purchasing controls, and item vendor information. See Defining Purchasing Item Attributes.
Maintain Purchase Order	PO_LINE	Supplier Contracts, Related Links, Add/Update POs	Select to enter or change purchase order information. For example, you can change default values, header details, and activities; add items to the purchase order; and update ship dates. See Creating Purchase Orders Online.