This chapter provides an overview of agreements and discusses how to:
Initiate agreements.
Update agreements.
Share agreements among buyers.
Before the system can process invoices and payments, an agreement must be established and its terms agreed to by both the buyer and the supplier. The buyer administrator initiates the agreement with the supplier, triggering an email to the user, roles, or both, established by the supplier organization at either the agreement or supplier location level, that there is an agreement ready to be reviewed. After the supplier adds specifications and accepts the agreement, the buyer user who initiates the agreement is notified that a final review of that agreement is necessary. The buyer administrator then performs the final review, accepting the terms, finalizing the agreement, and enabling transactions between this buyer and supplier to commence.
Certain PeopleSoft eSettlements features reference processing options that are established at the agreement level. They are invoice creation, matching, and default ChartField processing logic.
The following sections discuss:
Agreements in the Buyer Direct Model.
Agreements in the Business Service Provider Model.
Agreements in the Buyer Direct Model
Agreement setup in the Buyer Direct model is very similar to that for the Business Service Provider model, however, there are important exceptions for the Buyer Direct model:
Matching terms for purchase orders are not obtained from the agreement, but from the vendor, if a match control ID exists for the vendor.
Otherwise the matching terms are obtained from the PeopleSoft Purchasing business unit for the purchase order.
The system uses the payment terms that are specified on the agreement for electronic invoices and self-service invoices.
Online vouchers that are created in PeopleSoft Payables use the payment terms on the vendor profile (maintained in PeopleSoft Payables or Purchasing). If there are no payment terms for the vendor, the system obtains the terms according to the PeopleSoft Payables default hierarchy.
Cash collection details are not appropriate for the Buyer Direct model and are unavailable for entry.
Users with system administrator role types can update payment terms. In such cases the buyer does not receive email notification of the change in terms.
You must establish a user with a supplier administrator role type before you can register an agreement.
Users with system administrator role types can access both buyer and supplier agreement details.
Agreements in the Business Service Provider Model
You set up agreements in the Business Service Provider model in the same way we discuss in the following sections, but note the following differences from the Buyer Direct model:
Matching terms for purchase orders are obtained from the agreement.
You must establish a user having a supplier administrator role type before you can register an agreement.
See Also
Understanding Self-Service Invoice Entry and Management
To initiate an agreement with a supplier, use the Review Agreement Details Inquiry component (EM_AGREE_INQUIRY) and the Agreement component (EM_AGREEMENT).
This section provides an overview of agreement initiation and discusses how to:
Enter buyer processing preferences.
Define default ChartFields.
Specify buyer notifications.
Agreements are initiated by the user who is associated with the buyer administrator role type, then offered to the supplier for review and approval. Buyers can also define notifications at the agreement level. The email notifications for the buyer appear as the default from the notifications that are set up at the setID level for the buyer who is specified on the agreement. Because multiple buyers can share the same agreement, the email notifications appear set up at the setID level, with the setID determined by record group EM_03.
When an agreement is shared and email notifications are overridden at the agreement level, all buyers sharing that agreement then have the same overridden email notifications. If the defaults from the buyer's setID are used at the agreement level, then the notifications for each buyer are determined from the notifications for each particular buyer setup at the buyer setID level.
At the agreement level, each business unit sharing the agreement can set up different email notifications and routings. The information here can be shared by many buyers. This table shows how sharing works:
Buyer |
Agreement Record Group EM_01 |
Notification Record Group EM_03 |
Buyer 1 (BUY01) |
BUY01 |
BUY01 |
Buyer 2 (BUY02) |
BUY01 |
BUY01 |
Buyer 3 (BUY03) |
BUY01 |
BUY03 |
In this example, buyers 1, 2, and 3 all share the same agreement, which is set up for buyer 1. For email notifications, buyer 1 and buyer 2 use the same email notification that is set up for buyer 1, but buyer 3 has a unique notification setup.
If, at the agreement, the user decides to accept the defaults, then when processing for buyer 1 and buyer 2 the system uses the email types, routings, and remainder days that are specified at the setID level for BUY01 (notification setup). When processing for buyer 3, the system selects the defaults that are established at the email notification setID BUY03. If the user decides to specify notifications at the agreement level for BUY01 then the system selects the new values that are specified at the agreement level (email type, routing, and reminder days) for buyers 1, 2, and 3.
Warning! When an agreement is shared by more than one buyer, if any one of those buyers overrides the default setup, they also override the email notifications for the other buyers that share the agreement. At this point, the sharing of the agreement should be reconsidered.
At the agreement level, you can define the second-highest level of the PeopleSoft eSettlements self-service invoice ChartField defaulting logic. The system uses a four-level hierarchy to automatically populate certain self-service invoices (those with no copied purchase order or receiver information) with default ChartField values; from highest to lowest level they are:
Buyer template.
Agreement.
Requester.
Item.
In general, the system overrides buyer template, agreement level, and requester values with item level values for account, alternate account, and product ChartFields. All other ChartFields default from the agreement level if specified, and if not specified, the requester level.
See Understanding Self-Service Invoice Entry and Management.
Page Name |
Definition Name |
Navigation |
Usage |
EM_AGREE_INQRY_ADD |
eSettlements, Buyer Information, Review Agreement Details, Add an Agreement |
Enter identifying buyer and supplier information to begin agreement creation. |
|
EM_AGREE_INQRY_SEL |
eSettlements, Buyer Information, Review Agreement Details, Existing Agreements |
View and access existing agreements in various statuses. |
|
EM_AGREEMENT_BUYER |
|
Enter basic processing preferences that are to be applied to invoices from the selected supplier and initiate review by the supplier, or view established agreement information. |
|
EM_AGRE_CF_SEC |
Click the Define Default Chartfields link on the Review Agreement Details - Buyer page. |
Define default ChartField information the system uses to automatically populate self-service invoices. The system uses this information in cases where purchase order or receiver information is not defined for a voucher. |
|
EM_AGR_BUY_NOTIFY |
Select the Buyer Notification tab from the Review Agreement Details - Buyer page. |
Specify buyer email notifications and routings. |
|
EM_AGREEMENT_SELLE |
Select the Supplier tab from the Review Agreement Details - Buyer page. |
Review supplier data. |
Access the Review Agreement Details - Buyer page (eSettlements, Buyer Information, Review Agreement Details, Add an Agreement).
Enter or view processing preferences that are to be applied to invoices from the selected supplier.
Hover your cursor over the supplier name to view a pop up containing address information for the supplier.
Note. If financial sanctions validation is enabled, the system does not consider the financial sanctions status of the supplier, nor does it validate the supplier against any financial sanctions lists (for example, the Specially Designated Nationals (SDN) list). Therefore, you can create agreements for any supplier with a financial sanctions status of Review or Blocked. However, the Pay Cycle Application Engine process (AP_APY2015) does not select invoices for a supplier that has a financial sanctions status of Review or Blocked. You cannot pay these invoices until the financial sanctions status of the supplier is set to Cleared or Valid.
See Understanding Financial Sanctions Validation.
Requires Matching and Match Rule |
Select the check box to require that invoices from this supplier go through the Matching Application Engine process (AP_MATCH) and specify the match rule control to be used. Note. These two page elements only appear in the Business Service Provider model. In the Buyer Direct model the matching information is defined with either the PeopleSoft Purchasing business unit or the vendor. |
Standard Vouchers Allowed |
Select to enable the supplier to send an invoice without a purchase order, resulting in invoices that do not go through the Matching process. Selecting this check box enables suppliers to submit invoices with or without purchase orders. If you do not select this check box, every invoice must be associated with a purchase order. |
Supplier Ref ID (supplier reference ID) |
Add any reference for this supplier. Note. For OAG XML invoices, the supplier provides this value in the PartyID tag. We discuss this correspondence in the Processing Invoices chapter. |
Comments
Add any comments regarding this supplier.
Bank Information
Buyer bank information populates by default from the buyer registration. You can specify different bank information here, and doing so does not change the bank information on the buyer registration.
Bank Code and Bank Account |
Select a different pay-from bank and bank account. A newly chosen bank overrides the default bank that is established during buyer registration and thus becomes the bank that is used during invoice creation for this supplier. Note. In order to provide international and domestic EFT payment layouts for the same bank account, you must establish an external bank account for each layout. |
Payment Method |
Select a method to use when transacting with this supplier. Only the methods that you previously associated with this bank account are available. |
Note. The bank information that you specify here populates incoming vouchers. If you require any bank information changes after an agreement is established, you must make them at the agreement level, not at the buyer details level.
Self-Service Invoice Options
Invoice Verification Option |
Select which invoices are routed to the requester (or other role that you specify) within the buying organization, for verification of invoice accuracy and completeness: All Invoices: Select to require invoice verification for all invoices, whether or not they are associated with a purchase order. No Invoices: Select to have no verification occur. non-PO Invoices: Select to specify that invoices having at least one invoice line that does not reference a purchase order be subject to invoice verification. Note. If a given invoice has no requester ID (if none is provided), the system takes the value from the buyer email notification setup. You define the default requester (or other role) during the notifications setup at the buyer setID level, and this definition can be overridden at the agreement level. When the requester is selected, a default requester must be defined. This requester ID is the one that is notified to verify self-service and XML invoices that are created without a requester ID. |
Expose ChartFields to Supplier |
Select this check box to enable the supplier to access ChartFields during self-service invoice creation. The accessible ChartFields are defined at the buyer details level. This check box appears only if you enable the option at the installation level. |
Define Default Chartfields |
Click to access the Default Agreement Chartfields page, where you can establish default ChartField information for self-service invoices. |
Notify Supplier to Review |
Click this button to send email notification to the supplier that the agreement is ready for review. Only after the agreement is updated and accepted by the supplier does the buyer administrator—after receiving email notification—again access the agreement to review the information that the supplier adds. After the agreement is finalized, this button no longer appears. |
Accept Agreement |
Click this button to accept the supplier's terms and finalize the agreement, and enable processing to commence. The Accept Agreement button appears here only after the supplier reviews the agreement and clicks the Accept Agreement button on the Review Agreement Details - Supplier page. After the agreement is finalized, this button no longer appears. |
Cancel Agreement |
Click this button to terminate the agreement. Either party can terminate the agreement. This button appears only after the agreement is accepted by both parties. |
See Also
Specifying Buyer Notifications
Defining eSettlements Installation Options
Access the Default Agreement Chartfields page (click the Define Default Chartfields link on the Review Agreement Details - Buyer page).
Establish default ChartField values the system uses to automatically populate self-service invoices when no purchase order or receiver information has been copied into the voucher.
In the four-level ChartField defaulting hierarchy, the system uses these values as the second level. You can edit these values at the invoice level. Buyers can validate the defaulted ChartField values before submitting the invoice to the Voucher Build Application Engine process (AP_VCHRBLD).
See Also
Understanding Self-Service Invoice Entry and Management
Access the Review Agreement Details - Buyer Notifications page (Select the Buyer Notification tab from the Review Agreement Details - Buyer page).
Agreement Reference
The Buyer, Supplier, and Location information appears by default from the registration level.
Specify Overrides |
Click this button to make changes to the notification types and routings. Warning! If other buyers share this agreement, any notification selections you override impact those buyers as well. |
Restore Defaults |
Click this button to revert to the default routings. |
Note. At the agreement level, only the host and buyer administrator role types can enable and define routings in the Buyer Direct model. In the Business Service Provider model, only the buyer administrator can enable and define routings.
Notification Types
If you click the Specify Overrides button, enter the appropriate routing information for each notification type in the Enter Routings group boxes.
Note. If a user does not have access to a particular agreement, that user will not receive the email notifications.
See Also
Specifying Buyer Notifications
To update an agreement, use the Review Agreement Details component (EM_AGREE_INQUIRY) and the Agreement component (EM_AGREEMENT).
This section discusses how to:
Enter supplier processing preferences.
Specify supplier notifications.
The supplier administrator reviews and updates the terms of the initiated agreement, specifies preferences, and—for the Business Service Provider model only—establishes payment and discount terms for the buyer.
Note. In the Buyer Direct model, only a user who is assigned the role type of system administrator can specify payment terms; suppliers cannot.
Page Name |
Definition Name |
Navigation |
Usage |
EM_AGREE_INQRY_BUY |
eSettlements, Supplier Information, Review Agreement Details, Review Agreement Details - Inquiry |
View existing agreements. |
|
EM_AGREEMENT_SELLE |
Click a Buyer link on the Review Agreement Details - Inquiry page. |
Review buyer terms and accept agreement. |
|
EM_AGR_SUPP_NOTIFY |
Select the Supplier Notifications tab from the Review Agreement Details - Supplier page. |
Specify supplier email notifications and routings. |
|
EM_AGREEMENT_BUYER |
Select the Buyer tab from the Review Agreement Details - Supplier page. |
Review buyer data. |
Access the Review Agreement Details - Supplier page (Select the Supplier tab from the Review Agreement Details - Buyer page).
Comments
Customer Ref ID (customer reference ID) and Comments |
Enter a reference ID and any comments that are relevant to this buyer or agreement. |
Agreement Information
Remit Supplier Used |
Select this check box to use an alternate remit to supplier, to which the system transmits invoices for this supplier. |
Name and Location |
Enter the remit to supplier name and location. |
Supplier Payment Terms
If multiple terms exist, you cannot view them all at once. Use the controls in the Supplier Payment Terms group box header to scroll through them.
Note. In the Business Service Provider model, because the system generates email when a user inserts a new effective-dated row or deletes the current row, if you need to change the payment terms on an agreement, you must add a new row with the date that the new terms are to become effective.
Payment Terms |
Select terms, such as Due Now, Net 30, or EOM. |
Payment Terms effective as of |
Enter a date on which the terms become effective. |
Add New Payment Terms |
Click this button to specify new payment terms and a new date.
Note. Payment terms can only be changed by the supplier
in the Business Service Provider model, which initiates another agreement
cycle requiring the agreement to be reaccepted by both the buyer and supplier. |
Accept Agreement |
Click this button to accept the buyer's terms and trigger email notification to the buyer administrator, enabling the buyer to finalize the agreement. This button appears here only after the buyer clicks the Accept Agreement button on the Review Agreement Details - Buyer page. Note. When the supplier clicks this button, the system sends email notification only to the buyer users who initiated the agreement. |
Cancel Agreement |
Click this button to cancel the agreement and prevent further invoice creation or processing to occur once an agreement is finalized. Clicking this button does not effect invoices that are already in the system, but prevents the creation of new invoices. |
Access the Review Agreement Details - Supplier Notifications page (click a Buyer link on the Review Agreement Details - Inquiry page).
Agreement Reference
The Buyer, Supplier, and Location fields populate by default from the supplier location level.
The supplier notifications at the agreement level populate by default from the supplier setID level, or from the supplier location level if they are overridden there.
In addition, only those email notification types that are activated at another level can be overridden at the agreement level. Otherwise, if not previously defined at another setup level, all fields that are for the given notification type are not available for entry.
The system administrator selects the notification types and roles at the setID level. At the supplier location level and at the agreement level, the system administrator selects the notification types and the supplier administrator selects the roles.
Specify Overrides |
Click this button to make changes to the notification types and routings (which populate by default from the supplier location information). |
Restore Defaults |
Click this button to revert to the default routings. |
Notification Types
If you click the Specify Overrides button, enter the appropriate routing information in the Enter Routings group box.
See Also
Specifying Buyer Notifications
You can use agreement sharing in both the Buyer Direct and the Business Service Provider model. If you create a new buyer in either model, agreement sharing and tableset control assignment occur automatically when you create the buyer, through the use of the buyer template where the agreement setID is specified.
When the agreement setID is populated on the buyer template, the system uses that setID for record group EM_01 during buyer registration, and when creating agreement sharing. When the agreement setID on the buyer template is not specified, the system populates record group EM_01 with a value that is equal to the buyer that is being created. You can also create sharing among buyers after buyer registration by modifying the EM_01 setID for the buyers.
To access record groups, select PeopleTools, Utilities, Administration, TableSet Control.
If you enable an existing PeopleSoft Payables business unit in the Buyer Direct model, you can share agreements among multiple buyers by using tableset sharing.
To share an agreement among multiple buyers after enabling an existing PeopleSoft Payables business unit:
Create an agreement with a supplier for one of the buyers.
Access the TableSet Control component (SET_CNTRL_TABLE1) for each of the other buyers (enter the buyer business unit in the Set Control Value field on the search page).
On the TableSet Control - Record Group page, scroll to record group EM_01 and enter the buyer ID for which you create the agreement in the SetID field.
Save and repeat for each buyer sharing the agreement.
See Also
Enterprise PeopleTools PeopleBook: PeopleSoft Application Designer