Defining Supplier Contracts

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

• Create purchasing contracts (contract entry).

• Add purchasing contract documents.

• Add purchase order contract documents.

• Set up spend thresholds and run contract alert workflows for purchasing contracts.

• Set up contract release processes for purchasing contracts.

• Access related links for supplier contracts.

See Also

Creating Ad Hoc Documents and Ad Hoc Contracts from Purchasing Contracts and Purchase Orders Using Document Management

Understanding Supplier Contract Management Transactional Purchasing Contract Definition (Contract Entry)

PeopleSoft 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 purchasing 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 can also create contract documents that use transactional purchase orders as the source transactions. These contracts use the same clause library elements as the transactional contract-based contracts and also provide life-cycle processing and approvals.

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 purchasing contract and the purchase order contract document in the Purchasing application are also in PeopleSoft 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 PeopleSoft 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 with 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.

Common Elements Used in This Chapter

Creating Purchasing Contracts (Contract Entry)

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 Purchasing Contracts

Defining Purchasing Contract Information

Access the Contract page (Supplier Contracts, Create Contracts and Documents, Contract Entry).

Use the Contract page to enter header and line information for the transactional purchasing 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 additional fields and options that are available when you use the Contract Entry and Add/Update Contract components and have PeopleSoft Supplier Contract Management installed. Most of the documentation for defining and using transactional purchasing 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.

Contract Version

You use this section to manage and review versions of a contract.

PeopleSoft Supplier Contract Management has two version capabilities. Purchasing contract versions refer to the revision of the purchasing contract transaction (Contract Entry). This functionality provides you a method to revise the transactional contract as a new draft version while the prior version of the contract is still active within PeopleSoft Purchasing. A separate version control feature is provided within Supplier Contract Management for contract documents which enable you to create new versions of the contract document independent of the transactional contract. For example, you can create just a document amendment with or without any version required to the transactional contract or visa-versa.

Note. When you create or refresh a document within PeopleSoft Supplier Contract Management document management that ties (binds) into the transactional contract, then the system uses the most recent version of the transactional contract to resolve transactional contract bind information.

Purchasing contract versions are only available if the Use Version Control check box is selected on the Contract and Vendor Rebate Controls page. To access the page, select: Set Up Financials/Supply Chain, Product Related, Procurement Options, Purchasing, Set Controls-Contracts.

To create a new contract version, you must have the authority to create the version. The authority is established by selecting the Enter Contracts/New Version check box on the Contract Process page. To access the page, select: Set Up Financials/Supply Chain, Common Definitions, User Preferences, Define User Preferences, select a user, click Procurement, Contract Process.

Note. The system tracks contract versions for purchasing contracts and Supplier Contract Management contract documents. The version status for purchasing contracts is tracked using the Contract Version section. The version for supplier contract documents is tracked using the Document Version section.

See Setting Contract and Vendor Rebate Controls.

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.

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.

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.

Contract Items

Use links in this section to access other methods for adding items to the contract lines. Click the Catalog Search 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.

Click the Search for Contract Lines link to expand this section so that you can define search criteria for contract lines and retrieve specific contract line information.

See Searching for Contract Lines.

Contract Categories

Use this section to define information for contract categories and line items, including item adjustments, exclusions, and category agreements.

See Defining Contract Category Lines.

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 PeopleSoft 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.

Adding Contract Category Information

Access the Details tab in the Lines grid in the Contract Category section.

Use this grid area and its tabs to define categories you want to include in the contract. Contract categories enable you to specify groups of items on a contract, rather than having to enter the items one at a time. Using contract categories, you can add categories to a contract along with item exclusions, upper and lower limits, and price adjustments. When you create requisitions and purchase orders, the system locates and verifies that it uses the appropriate contracts automatically. You can use categories in conjunction with contract lines and open items, but you cannot create contract releases using category contracts.

Along with categories, you define a variety of details, release amounts, and category details. Using the PeopleSoft Supplier Contract Management application, you can also assign agreements for contract categories. Click the Contract Agreement button in the Lines grid area to add contract agreements for individual categories at the line level. The button is represented by a blue hand-shake symbol.

See Setting Up Contract Categories.

Reviewing Supplier Contract Releases

Access the Review Releases page (Supplier Contracts, Create Contracts and Documents, Contract Entry, Contract Releases, select the Review Releases tab on the Contract 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 (Supplier Contracts, Create Contracts and Documents, Contract Entry, and click the Contract Syndication link on the Contract 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.

See Also

Syndicating Supplier Contracts and Contract Messaging

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 PeopleSoft Supplier Contract Management with PeopleSoft Purchasing purchasing contracts makes it possible for contract specialists to work directly with documents that are authored and linked to the transactional purchasing contract (Contract Entry). This section describes how you add and copy procurement 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:

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

   Enter contract information and save the contract.

2. 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.

3. 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.

4. 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. The option to copy the latest document along with the copied transactional contract is not available when using the Batch copy method.

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 Copying Ad Hoc or Purchase Order Contract Documents Using Document Management section.

See Copying Documents Using Document Management.

To copy a purchase order contract document:

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

   Ensure that 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.

2. 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.

3. Click the Add button.

   The Contract page appears.

4. Click the Copy from Contract link.

5. 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.

6. Select the contract that you want to copy, and click OK.

7. 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.

8. Click the Yes button.

   The Create Document page appears.

9. 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 and attempts to keep all original edits for any content not replace due to the refresh process, then updates any bind values from the new transactional contract.

   Note. The copied contract is now considered to be the baseline contract for any future deviation reporting against this newly copied contract.

Using Wizard Responses from Requisition Documents

Purchase order documents and purchasing contracts can originate through a requisition process. Before creating either document using this process, requesters 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 the requisition document 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 that 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 a purchase order or purchasing contract document. Documents of this type must be associated with 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:

1. Ensure that these Supplier Contract Management installation options are selected:

   • Use Document Type.

   • Use with PO Requisition.

2. 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.

3. 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.

4. 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.

5. Create a requisition in PeopleSoft Purchasing or eProcurement.

6. 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.

7. 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.

8. 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 PeopleSoft Purchasing or eProcurement requisitions.

See Also

Adding Requisition Documents and Wizard Responses

Pages Used to Add Purchasing Contract Documents

Creating Purchasing Contract Documents

Access the Contract page (Supplier Contracts, Create Contracts and Documents, Contract Entry).

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 the wizard without returning to this page.

See Also

Adding Authored Documents

Copying Existing Purchasing Contract Documents

Access the Create Document page (click the Add a Document button on the Contract 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.

Note. You can copy an existing purchasing contract document only when you are using the online copy option. This function is not available using Batch copy.

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 (Purchasing, Requisitions, Add/Update Requisitions, and 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).

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. You can apply requisition request documents to both purchase order documents and to purchasing contracts. 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 an RFQ or sourcing 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. Within PeopleSoft Strategic Sourcing, you cannot award events that have bid factors with agreements and clauses tied to them to a purchase order document, because the system does not transfer them to the purchase order document. You can award bid factors that have agreements and clauses tied to them only to purchasing contracts.

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 for purchase order and purchasing transactional documents.

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.

Adding Purchase Order Contract Documents

This section provides an overview of purchase order contract documents and discusses how to add purchase order contract documents.

Understanding Purchase Order Contract Documents

Purchase order contract documents enable you to author contract documents based on purchase orders and express purchase orders as an alternative to using the Transactional purchasing contract as a source. This functionality is intended for customers not using purchasing contracts, but who still want to author a contract document based on a purchase order. When you base a document on a purchase order, the system can use values from that purchase order to process rules and content within the document configurator, or as fill-in-the-blank values for the authored document.

Note. The authoring process is not intended to fully replace the purchase order dispatch report which includes many specific calculations and formats. Contract authoring enables you to bind into the purchase order data and author a document using content from the clause library. In environments where the purchase order transaction is solely being used as an alternative to the transactional contract, this feature provides you an optional authoring capability for purchase orders.

You can create an authored document from purchase orders and express purchase orders from within PeopleSoft Purchasing. You can also create a purchase order document from the Contract Entry component by selecting the Purchase Order source transaction and selecting a purchase order ID. Before you can create a purchase order contract document, you must set PeopleSoft Supplier Contract Management installation options to enable transactional sources for purchase orders.

Authored documents from purchase order source transactions are similar to those for purchasing source transaction documents. For example, you can import a legacy contract to create a purchase order contract the same as you can to create a purchasing contract. Or, you can copy a purchase order document the same as a purchasing contract document.

The similarities and differences to authoring documents using purchase orders include:

• The use of a related request document tied to requisitions to capture wizard responses for use with a purchase order contract document that you create later.

  See Adding Requisition Documents and Wizard Responses.

• When using PeopleSoft Strategic Sourcing, you cannot award events to a purchase order that have bid factors with agreements and clauses tied to them because the system does not support agreement capability for purchase orders as it does for transactional purchasing contracts.

• Verity searches that use purchase order search criteria and reports that provide purchase order-based contract information.

  See Purchase Order Attributes.

• Supply-side access to source transaction documents for purchase orders.

  As with authored documents related to the transactional contract, you can configure the system to allow for supply-side access (collaboration and signing) of purchase order authored documents.

  See Reviewing and Collaborating on External Documents.

• Version control for purchase order documents.

  Note. Documents that you create or refresh from purchase orders are always based on the latest updates to the purchase order itself. This is the original purchase order or any change orders that have been applied to the purchase order.

• The use of purchase order workflow, document management workflow, or both.

  Depending on organizational requirements, you can configure the system to use the PeopleSoft Approval Framework for purchase orders and documents within PeopleSoft Supplier Contract Management. You can also define additional workflow configurations within an approval process definition that determine the types of approvals and when they are needed for the purchase order versus the authored document.

• The copying of a purchase order authored document along with copying a purchase order.

  When you create a purchase order by copying it from an existing order, the system checks for an existing document for the purchase order. If a document exists, the system displays a message asking you if you would like to copy the document as well.

  See Entering Purchase Order Header Information.

• The dispatch of attachments for purchase order documents.

  As with the transactional purchase contract, you can optionally dispatch (email) related purchase order attachments along with the authored document within PeopleSoft Supplier Contract Management.

  See Dispatching Documents.

Purchase Order Contract Document Validations

When you create a purchase order document, the system validates that the purchase order is appropriate to have a document tied to it. The system provides warnings when it detects a problem with associating a document to a purchase order. The warnings do not prevent you from creating the document.

As part of the validations, the system provides warnings if:

• A purchase order line has already been associated with a purchasing transactional contract.

  Contract documents should normally be authored from the purchasing transactional contract and not the purchase order, because the purchase order could have lines pointing to multiple purchase order transactional contracts.

• A purchase order is tied to a group purchasing organization (GPO) contract.

  Single GPO contracts are set up outside of the Enterprise Resource Planning (ERP) system. These are normally vendor- and distributor-side contracts. Also, each purchase order line could be tied to a different GPO contract as well. An ad hoc contract document would be better to use for creating the initial GPO contract.

• The purchase order is against a PeopleSoft Services Procurement-related work order.

  If the purchase order is related to a Services Procurement work order and a purchasing transactional contract is not being used, then the Services Procurement work order would normally serve as the contract.

• The purchase order is subcontracted.

  For subcontracted purchase orders, it's more likely that the contract is already established prior to subcontracted purchase orders being created automatically from the production ID within manufacturing.

• The purchase order is a drop-ship order.

  In this case, it's not likely that the purchase order is a contract. You create drop-ship purchase orders using PeopleSoft Order Management. If the purchase order is going to be contract-related, you should use the purchasing transactional contract at the line level for contract authoring.

• The purchase order is for stockless or consigned items.

  It's likely that these types of purchase orders are not contract-related or might already have a purchasing transactional contract.

Purchase Order to Authored Document Status Mappings

As part of managing the statuses of purchase orders with the statuses of the authored document, the next table provides general guidelines for the purchase order versus authored document statuses. As is with the transactional contract, the system enables two statuses to function independently to support the need for various transactional related processing independent from authored document and signatures. The mappings include:

See Also

Transactional Purchase Orders

Pages Used to Add Purchase Order Contract Documents

Adding Purchase Order Documents

Access the Create Document page (Supplier Contracts, Create Contracts and Documents, Document Management).

This page is similar to the page that you use to add the purchasing transactional contract, but the fields relate to purchase orders.

After you define the basic information for the purchase order document, click the Add a Document button. The system displays the Create Document page where you can define additional details for the document, such as the document type, cycle times, and internal and external contacts. You can also import a legacy document and use it as the purchase order contract document.

See Also

Creating Purchasing Contract Documents

Setting Up Spend Thresholds and Running Contract Alert Workflows for Purchasing Contracts

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.

• Define contract category line 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 transactional 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 a workflow notification to notify him when contract spending on that line item reaches and exceeds 75,000 USD.

The spend threshold is available at the contract header, contract line, and contract category levels. 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:

1. Access the Contract page.

2. Click the Thresholds & Notifications link.

3. Select the Send Threshold Notification check box.

4. Define the threshold amount.

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

5. Select the notification type and at least one user to whom you want to send notifications.

   Use the Notification Assignments grid to make these selections. Examples of notification types include maximum amount, renew, and draft due notifications.

6. Click OK.

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

Note. The system notifies the user IDs that appear with the notification type of Spend in the Notification Assignments grid on the Thresholds & Notifications page for contract header, line-item, and category levels.

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

1. Access the Contract page.

2. Select the Spend Threshold tab for either the contract lines or category lines.

3. Select the Notify on Spend Threshold check box and enter spend amounts.

4. Click Save.

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

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

Defining Contract Header Spend Thresholds for Transactional Contracts

Access the Thresholds & Notifications page (Supplier Contracts, Create Contracts and Documents, Contract Entry, Contract, and click the Thresholds & Notifications link on the Contract 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.

Date Notification

Use this section to define expiration notification information.

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.

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 notified only after when this threshold is reached.

See Understanding Spend Thresholds and Contract Alerts.

Amount Summary

Use this section to update and review contract amounts.

Defining Contract Line Item Spend Thresholds for Purchasing Contracts

Access the Contract Entry page: Spend Thresholds tab (Supplier Contracts, Create Contracts and Documents, Contract Entry, Contract, and select the Spend Threshold tab on the Contract page).

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.

Running Contract Alert Workflow Processes

Access the Create Contract Alert Workflow page (Supplier Contracts, Create Contracts and Documents, Contract Alert Workflow).

Use this page to define criteria for running contract alerts. You can select to process only date and amount notifications, 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.

Setting Up Contract Release Processes for Purchasing Contracts

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.

Note. These release processes are described in the PeopleSoft Purchasing PeopleBook.

See Also

Using Purchase Order Sourcing

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.

Pages Used to Set Up Contract Release Processes for Procurement Contracts

Staging Contract Releases to Create Purchase Orders

Access the Release Parameter page (Supplier Contracts, Contract Release Processes, Stage Contract POs).

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

See Also

Running the Purchase Order Contracts Process

Sourcing Purchase Orders Automatically

Access the PO Auto Sourcing - Objectives page (Supplier Contracts, Contract Release Processes, PO Auto Sourcing).

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.

See Also

Using the Automatic Purchasing Sourcing Process

Running the Purchase Order Calculations Process

Access the PO Calculations - Run Controls page (Supplier Contracts, Contract Release Processes, PO Calculations).

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 (Supplier Contracts, Contract Release Processes, PO Creation).

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.

See Also

Creating Purchase Orders Using the Create Purchase Orders Process

Viewing and Updating Purchase Orders in Staging Tables

Access the Sourcing Workbench page (Supplier Contracts, Contract Release Processes, Sourcing Workbench).

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