Defining Contract Agreements

This chapter provides an overview of contract agreements, agreement compliance metrics, lists common elements, and discusses how to:

Click to jump to parent topicUnderstanding Contract Agreements

This section discusses:

Click to jump to top of pageClick to jump to parent topicContract Agreements and Contract Compliance

An agreement is a negotiated set of conditions in a contract. The agreement specifically spells out the conditions and terms that apply to the contract. You use the PeopleSoft Supplier Contract Management system to monitor and validate agreements. Agreements are assigned through PeopleSoft Strategic Sourcing bid factors and Purchasing contract maintenance. This formal tracking process makes it possible for you to ensure that a supplier is in compliance against the agreements in a contract. Agreements are also known as service level agreements (SLAs) and can be created for specific items in a contract (line agreement), for a contract in general (header agreement), and for a group of items (category agreements).

Often, contract terms that reference the contract cannot be measured by the data that is captured on traditional purchase order, receipt, and voucher transactions. These contract terms are considered nontransactional agreements. An example might be that work can only be performed during daylight hours or that site grading must meet certain standards. Within the contract management system, a more generic structure exists for measuring the milestones and compliance factors of nontransactional agreements. This structure is more practical for monitoring and tracking the performance of the supplier against the contract.

An agreement can contain a list of interested parties and a target date for notifying the parties about the contract header, line, or category agreement. You can set up notifications for completion, change of status, the passing of a target date, or reminder days. Notifications can be directed to supplier contacts, internal users, or both.

Agreements can also have clauses assigned to them. After you create agreements, you use the document authoring system to manage any documents that might have been created in support of the agreement. As a part of agreement monitoring, the system manages step verification requirements and responsible parties for monitoring the agreements. The system notifies you using email when an action, such as a scheduled performance review, is needed.

In addition, you can specify that related files need to be created and attached to the contract record. For example, a contract might state that to receive final payment, the supplier must certify that they have returned all company-furnished equipment and intellectual property. You can set up that agreement clause to require the system to attach a certification file to the contract and store it in the system. This action not only helps maintain compliance with the contract, but it also can help uncover cost savings that otherwise might not have been realized.

Contract compliance is divided into two parts. The first part, described in this chapter, involves predefining agreements and assigning agreements to purchasing contracts. The second part is monitoring and analyzing compliance against agreements. That part is discussed in the next chapter.

See Also

Managing Contract Agreements

Click to jump to top of pageClick to jump to parent topicAgreement Use

For each agreement, you can define the verification requirement, whether the agreement is compliant with the terms of the contract, as well as when and who to notify when a compliance date is approaching or has passed. Additionally, agreements might have one or many clauses to which they are associated. When you specify agreement codes on a contract or when a PeopleSoft Strategic Sourcing event is awarded and posted to a contract, the system provides the agreement information to the contract by default.

PeopleSoft Strategic Sourcing supports the mapping of bid factors to one or more agreements and the passing of selected negotiated terms into the awarded contract as agreements. If a sourcing event is awarded to a contract and a bid factor on the event has one or more agreements with which it is associated, the system adds those mapped agreements to the awarded contract. If, however, the system does not map agreements to a bid factor and you want to carry the negotiated terms into the contract, you can create an ad hoc agreement for the contract using the bid factor information and responses. You can also manually add a predefined agreement to the contract. In all cases, you can define any additional information that relates to the agreements for that particular contract or delete any information that is not pertinent to the agreement.

After the contract is approved, you can record the result of the contract activities and the agreement verification information, and indicate whether the agreement is compliant. After tracking the agreement's compliance, you can review the activity and status and manually release adjustment vouchers for any bonuses or penalties incurred.

Note. You can use contract agreement capability for sourcing events that are awarded to purchasing contracts only and that are not enabled for sourcing events awarded to purchase orders.

Click to jump to parent topicCommon Elements Used in This Chapter

Clause Assignments

Click to access the Assign Agreement Clauses page, where you can select a clause for this agreement.

See Assigning Clauses to Agreements.

Financial Implication

Enter a statement that relates to the financial implication if an agreement is compliant or not compliant. The statement can describe whether a bonus is paid or a penalty assessed if the agreement is met or not met. The system displays the financial implication on the contract if the agreement is selected. The actual bonus payment or collection for the penalty is a manual process.

Include In Contract Document

Select to include this agreement and its associated clauses on the purchasing contract when you dispatch the contract to the vendor. You could set up the agreement so that it serves only as an internal reminder to collect certain documentation or to perform steps before the completion of the contract. In these cases, the information should not be sent to the supplier or used in the wording of the contract document.

Notification Comments

Enter up to 254 characters as a description of the agreement that the system uses when it sends notifications. When notifications are external they appear in the agreement notifications sent to the supplier.

Version

Displays the version of the contract. Versions enable you to create and maintain multiple versions of the contract in the system. Versions provide a snapshot of the contract at a point in time and make it easier for you to view information in older contract versions.

Notification Assignments

Click to access the Agreement Notifications page, where you can assign the criteria by which the system sends notifications. Notifications can be sent for an agreement, verification steps, or both. When supply-side updates of agreement activities (deliverables) are enabled, you can define the notification for an external user ID. The supplier can then be notified using an email that contains a URL that provides the supplier access through the supplier portal to the specific deliverable.

See Assigning Notifications for Agreements and Steps.

Click to jump to parent topicUsing Agreement Metrics

This section discusses:

Click to jump to top of pageClick to jump to parent topicMetric Measurements

Supplier Contract Management uses procurement history from PeopleSoft Purchasing to gather transactional agreement compliance information. This enables you to use summaries of purchasing, invoicing, and receiving transactions to measure a vendor's performance and compliance to a contract agreement. The procurement history also provides you with information about procurement trends and can assist you in managing vendor relationships.

To enable the comparison of a vendor's performance against the performance defined in a contract agreement, the system uses underlying metrics as the basis for evaluating whether the agreement is being met. After running the metric process for procurement history, the system calculates agreement compliance for the contracts included in the run. When you define an agreement, you also establish a numeric negotiated result and performance tolerance value. The metric ID determines the meaning of these values. For example, if the Metric ID value is On-time Receipt Performance, the negotiated result amount represents the target percentage for on-time receipts, and the tolerance percentage can represent an acceptable, but not the preferred level of performance below that targeted negotiated percentage. Any percentage below the allowed tolerance is considered unacceptable.

In addition, you can set up alert notifications to inform buyers when an agreement reaches a warning or unacceptable tolerance level. You notify interested parties, such as contract managers and buyers, when a supplier's performance needs to be examined or when the supplier's performance is unacceptable. You set up the notification process for warnings using the Process Notification page. To access the page, select Supplier Contracts, Monitor and Update, Setup Agreements, Workflow Notifications.

You use Supplier Contract Management pages to view summarized performance details and measurements about agreements and to view the acceptable, warning, or unacceptable performance levels for the agreement. You view the actual performance metric percentage using the Performance Details page. The system provides additional performance data along with charted summarizations of the data. Charted data by period includes:

You set up agreements to use metric measurements when you define agreement codes. When you select Metric as a result type, you also select the type of measurement (metric ID) that you want to use along with tolerance percentages. You can measure performance based on these metric measurements:

An example of using a metric agreement might be when a contract includes an agreement that specifies that the supplier should deliver 95 percent of its shipments on time by aggregate receipt quantity. So by tracking the supplier's performance over time and the supplier fails to meet the 95 percent target over the life of the contract, the contract manager might not want to renew the supplier's contract. The metric provides the information needed to make the decision.

In addition, suppose the contract manager wants to track the vendor's performance on a regular basis. The manager can set up an agreement with a deliverable for on-time performance and track the performance on a daily, weekly, or monthly basis. The system periodically checks the on-time performance metric for the contract and issues an email and worklist alert to the manager or verification step owner if the performance falls below the agreed upon 95 percent threshold. The manager can then contact the supplier or take appropriate action. By evaluating the receiving transactional data and then notifying the interested party if the supplier is not compliant, it becomes easier for contract managers to manage performance on an exception basis. Contract managers can use any of the performance-based metric measurements on this basis.

See Also

Analyzing Procurement Data and Using Group Purchasing Organizations

Click to jump to top of pageClick to jump to parent topicMetric Measurement Types

You use the Contract Agreement Definition page to define agreement codes for use with metrics. Using the page, you select to measure the performance against a contract agreement using a metric-based result type. When you select this type, the Metric ID field is made available and you can select the type of metric you want to use to measure performance against negotiated terms of a contract at the header level.

Note. You cannot set up line-level agreements for use with metrics.

The next sections describe the metric measurements available for Supplier Contract Management and how the system processes the measurements.

On-Time Quantity Performance Measurement

This measurement measures the percentage and actual number of shipments that are on time, early, and late for all items within a period as captured within purchasing at receipt time. The system displays the percentage on-time metric, vendor name, and target percentages by period. To calculate the performance, the system:

  1. Retrieves the actual on-time quantity percentage from the procurement history.

  2. Calculates the on-time warning-performance percentage by subtracting the tolerance-performance percentage from the negotiated on-time percentage.

    For example, if the negotiated on-time percentage is 90 percent and the performance-tolerance percentage is five percent, then the on-time warning performance percentage is 85 percent. Other calculations include:

On-Time Receipt Performance Measurement

This measurement measures the actual ship on-time percentage based on actual receipt versus quantity as captured within purchasing at receipt time. To calculate the performance, the system:

  1. Retrieves the actual ship on-time percentage from the contract procurement history.

    The percentage is based on the number of receipts related to the contract.

  2. Calculates the on-time warning performance percentage by subtracting the tolerance-performance percentage from the negotiated percentage.

    Other calculations include:

PO/Receipt Quantity Performance Measurement

This measurement measures the percentage and actual number of purchase order receipts within the period and tracks the percentage of total ordered versus total received quantities for the contract over time. The measurement includes a purchase order-versus-receipt quantity performance chart that displays the percentage open receipt quantity metric, vendor name, and target percentage by period. To calculate the performance, the system:

  1. Retrieves the actual-quantity open percentage from the procurement history.

  2. Calculates the quantity-open warning performance percentage by subtracting the tolerance-performance percentage from the negotiated percentage.

    For example, if the negotiated-received percentage is 95 percent and the performance-tolerance percentage is five percent, then the quantity open on-time warning performance percentage is 90 percent. Other calculations include:

Quantity Performance Measurement

This measurement measures the percentage and actual number of vendor shipments with correct quantities, over-shipment quantities, and under-shipment quantities by period. The system displays the vendor name, percentage correct, percentage under, percentage over, and target percentage. To calculate the measurement, the system:

  1. Retrieves the actual-correct shipment percentage from the contract procurement history.

  2. Calculates the correct-shipment warning performance percentage by subtracting the tolerance-performance percentage from the negotiated percentage.

    For example, if the negotiated correct percentage is 92 percent and the performance-tolerance percentage is three percent, then the correct-shipment warning performance percentage is 89 percent.

    Other calculations include:

Quality Performance Measurement

This measurement measures the percentage and actual number of vendor shipments that are rejected for quality reasons by period. The quality reason is determined by the reason code entered at receipt time. The system displays the percentage net received metric, vendor name, and target percentage along with the rejected and returned percentages. To calculate the measurement, the system:

  1. Retrieves the actual-quantity accepted percentage from the contract procurement history.

  2. Calculates the quantity-accepted warning performance percentage by subtracting the tolerance-performance percentage from the negotiated percentage.

    For example if the negotiated net-received percentage is 90 percent and the performance-tolerance percentage is five percent, then the quantity-accepted warning performance percentage is 85 percent.

Click to jump to top of pageClick to jump to parent topicSteps for Implementing Metric Measurements with Agreements

The Supplier Contract Management metric-based agreements use procurement reporting entities to capture procurement history for each contract. When a contract contains a metric-based agreement, a reporting entry is automatically created for you that is specific for the contract. To have the system automatically generate the reporting entity, you must first:

  1. Add an automatic numbering entry for the Contract Reporting Entity ID number type.

    This auto numbering setup is required so that the system can automatically create the reporting entity for the contract when you create new contracts that contain metric-related agreements.

    To add the entry:

    1. Select: Set Up Financials/Supply Chain, Common Definitions, Codes and Auto Numbering, Auto Numbering.

    2. Select Rept. ID from the list of values.

      The Auto Numbering page appears.

    3. Select REPORT_ENTITY in the Field Name field.

      The system also populates the Max Length field with 5 as well as other required information. You can add or update start sequences and descriptions for the auto-numbering details.

  2. Select: Set Up Financials/Supply Chain, Product Related, Procurement Options, Purchasing, Supplier Performance Setup.

    The Supplier Performance Setup page appears.

  3. Select an existing reporting entity in the Reporting Entity ID field.

    The system references the reporting entity to obtain the default setID and calendar information for each new reporting entity that it creates automatically when you add new contracts that contain metric-related agreements.

See Analyzing Procurement Data and Using Group Purchasing Organizations.

When the system processes the contract ID, it runs the Procurement History Update process (FS_PRCRUPD). The process includes necessary purchase order receipt information for the contract you specify because the system maintains a link between each contract and the hidden reporting entity for the contract. You use the Update Procurement Info page in the Supplier Contract Management Monitor and Update Agreements component to run the process. Next, you can use the Review Supplier Performance page to review the performance for a vendor based on one of the metric measurements.

Note. The Update Procurement Info page in Supplier Contract Management must be used to capture procurement history specific to contracts instead of the version of this component that resides in the PeopleSoft Purchasing Analyze Procurement component.

This example illustrates the process for creating agreements and applying metric measurements for performance against the agreement:

Applying metric measurements for performance process flow

To create and use agreement compliance metrics, use these steps:

  1. Create an agreement code that uses one of the metric measurements and attach the code to a contract.

    This includes:

    1. Defining the verification method as System.

    2. Setting up warning and unacceptable performance notifications and details for individual users.

      Use the Notification Assignments link on the Contract Agreement Definition page to access the Agreement Notification page.

      See Processing Agreement Notifications.

  2. Set up auto numbering and reporting entities reference on the Supplier Performance Setup page as described earlier in this section.

  3. Run the Procurement History Update process.

    This step updates procurement activity for the period and contract that you specify. Make sure that you run the process from within Update Procurement Info component in Supplier Contract Management.

    See Updating Contract Procurement History.

  4. Run the Workflow Notification (CS_NOTIFY_WF) process as needed to generate email and worklist notifications.

    The system notifies interested parties defined in notifications when an supplier has an unacceptable performance or a warning performance against a contract agreement. Ensure that the Warning & Unacceptable Performance check box is selected on the Process Notifications page.

  5. Access the Review Agreement Statuses page to review the Cumulative Performance value.

    This value provides an overview of the most up-to-date metric cumulative-performance percentages against this contract. The value is based on the current run of the Procurement History Update process for this contract.

  6. Click the Cumulative Performance value to review supplier performance information.

    This link accesses the View Vendor Shipment Performance page. You use the page to compare actual performance against target performance. You can also navigate to item details and review receipt information.

The Review Agreement Statuses page provides the supplier's Cumulative Performance value and a link to the View Vendor Shipment Performance page.

Use this page to view the level of acceptance or noncompliance to the agreement. Click the Cumulative Performance link value to review more specific details about the supplier's performance. When you access the View Vendor Shipment Performance page, you can review percentages, time periods, and actual shipment quantity and quality, such as the number of items received and the number rejected.

The View Vendor Shipment Performance page displays results of the most up-to-date cumulative performance percentage of metrics against this contract for the current Update Procurement Info run for this contract. For example, suppose you are tracking quality performance and, using the Contract Entry component, have established that an acceptable level of returns is five percent. Then, if 98 percent of the purchase order receipts for this contract have been received without being rejected for quality reasons, after updating procurement history, the View Status Agreements page displays the cumulative performance value of 98% Acceptable.

Through the Cumulative Performance link value, you can also access additional details of the underlying performance down to the individual receipt level for purchase orders linked to the contract. When you click the Period / Year link, the Performance Details grid box appears:

The Performance Detail grid box provides additional tabs that contain shipping and buyer information. Click the Item ID link to view receipt details for the item.

See Also

Analyzing Procurement Data and Using Group Purchasing Organizations

Reviewing Supplier Performance

Viewing Procurement Analysis Data

Click to jump to parent topicPredefining Agreements

This section discusses how to:

Click to jump to top of pageClick to jump to parent topicPages Used to Predefine Agreements

Page Name

Definition Name

Navigation

Usage

Contract Agreement Definition

CS_AGREE_HDR

Supplier Contracts, Monitor and Update Agreements, Setup Agreements, Contract Agreement

Set up basic agreement information for contract agreements.

Assign Agreement Clauses

CS_AGREE_CLAUSE

Click the Clause Assignments link on the Contract Agreement Definition page.

Assign clauses to agreements.

Agreement Notification

CS_AGREE_WF

Click the Notification Assignments link on the Contract Agreement Definition page.

Assign notifications for agreements and steps.

Process Notifications

CS_RUN_CNTL_WF

Supplier Contracts, Monitor and Update Agreements, Setup Agreements, Workflow Notifications

Process agreement notifications.

Click to jump to top of pageClick to jump to parent topicSetting Up Basic Agreement Information

Access the Contract Agreement Definition page (Supplier Contracts, Monitor and Update Agreements, Setup Agreements, Contract Agreement).

Use this page to predefine agreements. After defining the agreement, you can use the agreement code to provide default information from this agreement into a new contract agreement. Agreement codes are defined by setID. SetID records are the same set control group as the PeopleSoft Supplier Contract Management contract set control group.

Agreement Code

Displays the identifier for the agreement that you are adding or maintaining. Agreement codes are defined by setID.

Effective Date

Select the date on which the agreement is to become effective. The default value is today's date. This date controls when you can use the agreement and change the value.

Status

Select the state of the agreement. If you select Active, the agreement is available for immediate use with contracts. If you select Inactive, you can create the agreement and define its data, but it is not available for use.

Result Type

Select a value that indicates how you are measuring the results of the agreement. You can leave the field blank to indicate the value is not an applicable value. The result type you select determines other page elements and system behavior when you assign this predefined agreement to a contract.

Field values include:

Date: Select to use a calendar date as the type of result. You typically use this result type when an agreement is dependent on a calendar date. For example, if a function must be completed within 30 days of the start of the contract, you can track the actual completion of the function by entering a date for the results.

Metric: Select to measure the performance against a contract agreement using a metric-based type. When you select this type, the Metric ID field is made available and you can select the type of metric you want to use to measure performance against negotiated terms for contract agreement header and line-level agreements. The system can use notifications to verify the negotiated metrics on the agreement against procurement history.

Monetary: Select this type when a monetary value is associated with the agreement. For example, if the supplier must provide you with the cost of an extended warranty, you would use a Monetary result type.

None: Select this type when no compliance requirements exist. You use this option if you want to track steps or milestones without designating compliance or if you want to include certain clauses in the document.

Numeric: Select to use figures, such as the number of days in which a supplier must respond to a service call to measure the agreement.

Text: Select to use text if verification of the agreement will be in the form of free-form text. This text might include observations by an on-site inspector or comments by the contract administrator.

Yes/No: Select to use a yes or no indicator to specify whether the agreement was met.

Default Target Date

Select a method for defining the default target date. The system uses the value defined here to calculate a due date for the agreement when the agreement is specified on a contract. After you add the date, changes to the agreement's default target date will not change the contract's target date on any contract where this agreement code is specified.

Using the target date, you can work with different requirements when you need to verify agreement results. For example, an agreement might relate to conditions that must be met before you can execute the contract.

Methods include:

Contract End Date: Select to use the end date that is defined for the contract as the default target date. If you select this value, the system provides zero as the default value in the Number of Days field and disables the field.

Contract End Date + N days: Select to use the contract end date plus the number of days that you enter in the Number of Days field.

For example, if you enter 10 in the field, the verification of the agreement is due ten days after the contract end date.

Contract End Date – N days: Select to use the contract end date, minus the number of days that you enter in the Number of Days field. This action makes the verification agreement due before the contract end date.

Contract Start Date: Select to use the start date that you defined for the contract as the default target date. If you select this value, the system provides zero as the default value in the Number of Days field.

Contract Start Date + N days: Select to use the contract start date plus a specified number of days after that date to establish the due date for agreement verification.

Contract Start Date – N days: Select to use a specified number of days before the contract start date as the due date for agreement verification.

Number of Days

Enter the number of days by which you want to offset the default target date. For example, if you select Contract Start Date + N days in the Default Contract Date field and you want the default contract date to be seven days after the contract start date, enter 7 in the Number of Days field.

Description

Enter an extended description of the agreement. This field is required.

Click to jump to top of pageClick to jump to parent topicDefining Agreement Verification Steps

Access the Contract Agreement Definition page (Supplier Contracts, Monitor and Update Agreements, Setup Agreements, Contract Agreement).

Use the Verification Steps grid on the Contract Agreement Definition page to define the verification steps for this agreement.

Step

Displays the system-assigned step that defines the order in which verification is completed. The system begins the sequence numbering with 10, but you can change the sequence. Consider leaving gaps between the step numbers in case you want to insert additional steps at a later date.

Verification steps define the criteria necessary to fulfill the agreement. When you add data to any of the following fields, the system assumes you are adding verification steps to the agreement and certain fields on the page then become required. If you do not add data to the step, the system assumes there are no verification steps. Verification steps are automatically added to a contract when you specify the agreement on the contract.

You can delete steps without affecting existing contracts. You can also delete steps on an existing contract without affecting the predefined agreement.

Description

Enter a description of the verification step. This description might be a document or inspections that are required to complete the step. If you add a verification step to the agreement, this field is required.

Verification Step Owner

Select a user who will be responsible for this agreement verification step. You can also enter an owner's name. The owner does not have to be associated to a user ID. When you select this agreement to use with a contract, the system populates the verification owner information along with due date information for the contract agreement.

Verification Method

Select the method by which you want to verify this step. The method defines how a verification owner indicates that a verification step has been completed. This field is required if you are adding steps to the agreement.

Verification methods include:

Attaching Supporting Documents: Select to indicate that the verification of this agreement step is accomplished by posting supporting documentation. The verification owner can attach supporting materials by using the Update Agreement Statuses page.

Comments: Select to indicate that the verification can be made by entering text or comments.

Date/Time Stamp: Select to indicate that a date and time stamp will be provided when the step has been completed.

Notify: Select to indicate that action is not required to signify the step is completed. If you assign notifications to the step, selected roles can be notified when the step's due date is approaching. You can use this method to send periodic informational notifications or reminders to various interested parties.

On Line Verification with Yes/No: Select to indicate that the verification owner can update the verification step online using a yes or no response.

System: Select to indicate that the verification of this step should be provided by the system. This verification method is only valid for metric result types. If you use a metric result type, you must set up and use a system verification method. At least one system verification step that uses system as the verification method must exist for a contract agreement with a metric result type.

Comments

Select the Comments tab.

Use this page to enter comments about the verification step to include the email notification that is sent to the approver, collaborator, or reviewer. You can enter up to 254 characters. You can define separate comments for each verification step.

Click to jump to top of pageClick to jump to parent topicAssigning Clauses to Agreements

Access the Assign Agreement Clauses page (click the Clause Assignments link on the Contract Agreement Definition page).

Use this page to assign one or more clauses to the contract agreement. The system adds these clauses to the transactional contract when you specify this agreement for either the contract header or contract line.

If you elect to include the agreement information in the contract document, the system incorporates the clauses specified here into the Microsoft Word document. When defining sections for a document, you include agreement information. When that section is used in a document configurator, the system adds clauses associated with the agreements to the document.

Use the Search button to select a clause to include on the contract agreement.

See Searching Clause Content.

The Title, Full Text, and Reference Text fields are display-only. When you select a clause ID, the system populates these fields with existing clause data. You cannot change this data unless you use the clause maintenance facility. In this case, the clause update is controlled by the document authoring system and could include collaboration and approvals before the approval status makes it available for use again.

Sequence

Displays the sequence for this agreement clause. The sequence number controls the order in which the clause appears in the document. The system generates this Microsoft Word document using information and values from the document authoring system and transactional data.

When a clause is first added to an agreement, the sequence number is 10 by default, but you can change it as needed. When adding additional clauses, you should leave a gap between sequence numbers in case you need to insert an additional clause between two existing clauses. Click the + button and assign the sequence number based on where the clause should appear.

Clause ID

Select a clause to assign to the agreement. This is a required field. The clause must already exist before you can assign it to an agreement. You cannot add ad hoc clauses to agreements. Use the Clause feature in the Manage Contract Library component to add a clause for use with an agreement.

Search

Select to access the Clause Search page, where you can provide search information for locating clauses.

Select Body Text

Use this group box to define which type of body text you want to use in the clause. You can select only one type.

Full Text

Select to display the full text of the clause in the agreement document. Full text and by reference text are generation types that the system uses when generating the working Microsoft Word document. You can select either full text or by reference text.

By Reference Text

Select to include text by reference in the clause. Text by reference indicates a line to which the clause applies and a reference document that describes conditions for the line. The citation of the reference text should be sufficient to describe the contents of the reference, so that reprinting the full text of the clause in the document is not needed.

Title

Displays the clause title. This value is used with the clause regardless of whether you select Full Text or By Reference Text.

Full Text

Displays the full text that appears in the clause agreement if you select Full Text in the Select Body Text group box.

Reference Text

Displays the by reference text that appears in the clause agreement if you select By Reference Text in the Select Body Textgroup box.

See Also

Defining Contract Clauses

Click to jump to top of pageClick to jump to parent topicAssigning Notifications for Agreements and Steps

Access the Agreement Notification page (click the Notification Assignments link on the Contract Agreement Definition page).

Use this page to indicate if notifications will be initiated when a change in status occurs for an agreement or step or if you want to notify the recipient about a pending or past due date.

The system uses these notifications as default values on the contract when the agreement is specified on the contract header or line. The recipients you add here are typically those individuals who are always an interested party when this agreement is included in a contract. At the contract level, you can add additional notifications or delete existing ones. If the interested parties are always different for each contract, you do not need to specify any notifications here. Instead, you can set up the notifications when you create the transaction contract.

Sequence

Displays the notification sequence. This is a system-generated number that identifies the notification.

Notification Type

Select a notification type. Notification types are triggers for sending notifications to specified recipients, and is a required field. You can add as many recipients as necessary for each notification type. Values are:

Agreement: Select if you want to send the notification to the recipient when the status of the agreement changes, or to remind the recipient of an approaching or past target date

Agreement and Step: Select if you want to send the notification to the recipient when the status of the agreement or a step changes, or when you want to remind the recipient of an approaching or past target date for either the agreement or step.

Verification Step: Select if you want to send the notification to the recipient when the status of a step changes, or to remind the recipient of an approaching or past target date. When you select this option, you must also specify the step number in the Verification Step column.

Verify Step

Select a verification step to which this notification applies. The system displays this field when you select Verification Step as the value in the Notification Type field. Verification steps define the documents or inspections that might be necessary to fulfill the agreement.

User Type

Select whether the user is an internal or external user. The system controls the behavior of the remaining fields, depending on your selection. If you select Internal, the system low lights the Allow Updates check box.

If you select External, you can indicate if the external user can update the agreement and manually enter users and their email addresses.

Allow Updates

Select to allow external users to update the agreement verification step (deliverable) when you have enabled supply-side portal access to update the deliverable. This check box is only available for external users. Suppliers can then update this deliverable at any time, but they are notified to do so based on the notification setup for their user IDs.

Note. For more information about external users, see the Maintaining Supply-Side Documents and Deliverables chapter.

See Reviewing and Collaborating on External Documents.

See Maintaining Vendor Information.

Recipient Name

You use this field to enter an external user who is not defined to the system. You must also enter an email address when you enter a recipient. You can also select an internal user, but the system does provide the email address automatically. To populate the User ID and Email Address fields automatically, use the Search Recipient button, described next, to select a recipient.

Search Recipient

Click this button to search for users based on either their recipient name, user ID, or email address. The system populates the Recipient Name, User ID, and Email Address fields with your selection.

User ID

Select an user ID to use for this notification.

Specify Email

Select to use highlight the Email Address field. You can normally use the address that the system placed in the field which will be the default email address for the user ID, or you can override and manually enter an external email address for cases where simple notification is wanted but a user ID does not exist in the system.

Email Address

Enter an email address for the recipient. This field is required and the system uses it to route notifications. The system automatically populates this field from the user ID's default email. If you are sending a notification to an external user, you can manually enter the address. Make sure the Specify Email check box is selected to send the email.

Details

Select the Details tab.

Use this tab to set up notification reminder dates for recipients of agreement or step notifications. You can base notifications on a change in status of the agreement or step or as a reminder when a due date is approaching. You can also select to send notifications in all instances or to send notifications for specific reminders.

Notify On Status Change

Select if you want to notify the recipient when a status change occurs in the agreement or verification step. The system sends the notification to all recipients with a notification type set to Agreement or Agreement and Steps when the compliance status of the agreement is changed from Not Set to Cancelled, Compliant, or Not Compliant.

If the activity status of the verification step changes from Not Started to Cancelled, Completed, Failed, or In Process and the recipient's notification type is set to Agreement and Steps or Steps (and the step specified is being changed), the system sends a notification. To make changes to the status at the agreement or verification step level, use the Update Agreement Statuses component.

Warning Performance

Select if you want to warn the recipient about the performance against an agreement. This check box is available when the notification is tied to a verification step that has a system verification method and a metric result type.

Unacceptable Performance

Select if you want to notify the recipient that the performance against an agreement is unacceptable. This check box is available when the notification is tied to a verification step that has a system verification method and a metric result type.

Reminder Number Of Days Prior

Enter the number of days that you want a recipient to take action before the agreement or verification step is due. For example, if the target date of the agreement or the due date of the step is set to March 15 and you set the number of days prior to 5, the system does not notify the recipient until five days before March 15 (that is, March 10). If the notification type is Agreement, the system notifies the recipient this number of days before the target date of the agreement.

If the notification type is Verification Step, the system notifies the recipient this number of days before the due date of the step. If the notification type is Agreement and Step, the system notifies the recipient this number of days before the target date of the agreement as well as this number of days before the due date of every step. If you leave this field blank, the system does not send reminders.

Final Reminder Days

Enter the number of days before the target date of the agreement or the due date of the step that you want the system to send a final reminder. This field processes dates the same as the Reminder Number of Days Prior field and represents the last notification before the target date or due date have passed.

Passed Target Date

Select to indicate that the recipient is to be notified when the target date of the agreement has passed and the compliance status of the agreement is not set to Compliant or the due date of the step has passed and the activity status is not set to Completed. The system notifies the recipient following each run of the Workflow Notifications process until the agreement or step status is set to Compliant/Completed or Canceled.

Click to jump to top of pageClick to jump to parent topicProcessing Agreement Notifications

Access the Process Notifications page (Supplier Contracts, Monitor and Update Agreements, Setup Agreements, Workflow Notifications).

Use this page to periodically run the Workflow Notification process. The process initiates the reminders and notifications specified on the agreement. The system always processes notification entries if there has been a status change. Based on the conditions, the system only processes notifications if the compliance status is Not Set or the activity status is Not Started or In Process. The system also updates the statuses and notification flags during the process and keeps any Draft versions of the contract agreement synchronized with the contract.

The process determines which notifications must be sent based on the notification type and the options defined on the Details tab of the Agreement Notification page. If the notification type is Agreement, the process checks for these conditions:

If the notification type is Verification Step, the process checks for these conditions:

If the notification type is Agreement and Step, the process sends notifications based on the agreement criteria defined on this page as well as for each step that meets the verification step criteria.

User ID

Displays the ID of the user running the process.

Request ID

Enter a unique identifier for this run control process.

SetID

Enter a valid setID. If you leave the field blank, the system processes contracts for all setIDs.

Contract ID

Select a contract for which you want notifications processed. If a contract is not specified, the process creates notifications for all contracts that have agreement notifications specified. If you entered a setID, the system only processes the contracts for that setID. If you do not enter a setID, the system processes all contracts for all setIDs.

Agreement Past Due

Select if you want the system to issue past due notifications each time this process is run. If the Passed Target Date check box is selected on the Agreement Notification page, the current date is past the target date of the agreement, and the agreement status is not yet set to Compliant, the process issues a past due notification.

Therefore, if the agreement is past due by 10 days and this process is run daily, the recipient will have received 10 past due notifications and will continue to receive reminders each time this process is run until the task is set to Compliant or this check box is deselected.

If the Passed Target Date check box is not selected for the agreement notification, the system does not send past due reminders, regardless of this setting.

Verification Past Due

Select if you want the system to issue past due notifications for verification steps each time it runs this process. If the Passed Target Date check box is selected for the verification step, the current date is past the due date of the verification step and the step is not yet set to Completed, the system issues a past due notification.

Therefore, if the step is past due by five days, and the system runs this process daily, the recipient will have received five past due notifications and will continue to receive reminders each time this process is run until the task is set to Completed or this check box is deselected.

If the Passed Target Date check box is not selected on the workflow of the verification step, the system does not send past due reminders, regardless of the setting for this check box.

Warning & Unacceptable Performance

Select to use the run control defined for the notification and generate notifications for the contracts that contain system-generated metric performance agreements. These metric-related agreement notifications warn recipients about a supplier's performance against an agreement. Warning and unacceptable percentage ranges for performance are defined for individual contracts. Notifications are tied to verification steps that have a system verification method and a metric result type.

As of Date

Enter a date that you want to use as the end date for sending notifications. If you select to send warning and unacceptable performance notifications, then this field is required to determine which metric-agreement verification steps in the contract should be considered for notification.

If the contract's verification step Due/Start Notify Date field value is less than or equal to the value that you enter in the As of Date field, and the metrics negotiated result is unacceptable or outside of tolerance, then a notification will be sent to the specified users. Setting the As of Date field on the run control provides you more control over when the notifications are sent for metric-related agreements by allowing for an as of date that is prior to today's date.

Note. This date is independent of the metric data and date ranges that the system uses to calculate the metric data which is determined by the reporting entity and run control when you updating contract procurement history.

Last Period Only

Select to indicate that you want to use information from the last period on which to notify recipients of warning or unacceptable supplier performance against contracts. Normally, the system uses the cumulative metric information to determine if notifications are to be sent. This option is useful when you want to monitor the compliance by the last period of metric data that is based on the last run of the Procurement History Update process within PeopleSoft Supplier Contract Management versus monitoring the compliance by cumulative metric data.

Note. The last period of data that the system evaluates is dependent on the data stored after running the Procurement History Update process and not the value defined in the As of Date field.

Click to jump to parent topicAssigning Agreements to Purchasing Contracts

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

Click to jump to top of pageClick to jump to parent topicUnderstanding Purchasing Contract Agreements

You can assign predefined agreements to a contract at the header level the line level, and at the category level. Header-level agreements are typically negotiated terms that apply to the entire contract. Line-level agreements are terms that apply only to a specific line item on the contract. When you select an agreement from the agreement library, the system provides the information defined on the agreement by default into the contract. You can modify the information associated with the contract without changing the data on the master agreement. As an alternative, you can also create ad hoc agreements at each level by defining them directly on the contract. Ad hoc agreements are not part of the agreement library, but exist only for the life of the contract for which they were created.

Using category-level agreements, you can assign agreements that apply to a group of items that belong to the category. This saves you from assigning agreements for individual items in the category.

When you install both PeopleSoft Strategic Sourcing and Supplier Contracts Management, you can optionally assign clauses and agreements to the Strategic Sourcing bid factors. The clauses can appear to bidders online during the bid response process as well as on the event Adobe PDF file that the system generates when a sourcing event is posted. The bid factors and responses can also become an agreement and results when the event is converted to a contract.

Click to jump to top of pageClick to jump to parent topicPages Used to Assign Agreements to Purchasing Contracts

Page Name

Definition Name

Navigation

Usage

Contract Header Agreement Assignments

CS_AGREE_CNT

Supplier Contracts, Create Contracts and Documents, Contract Entry

Click the Contract Agreement link on the Contract Entry page.

Assign contract header agreements.

Contract Header Clause Assignments

CS_AGREE_CNT_CLAUS

Click the Clause Assignment link on the Contract Header Agreement Assignments page.

Assign contract header clauses.

Contract Header Notification Assignments

CS_AGREE_CNT_WF

Click the Notification Assignments link on the Contract Header Agreement Assignments page.

Assign contract header notifications.

Contract Line Agreement Assignments

CS_AGREE_CLN

Supplier Contracts, Create Contracts and Documents, Contract Entry

Click the Contract Agreement button for the line item on the Contract Entry page.

Assign contract line agreements.

Contract Line Clause Assignments

CS_AGREE_CLN_CLAUS

Click the Clause Assignment link on the Contract Line Agreement Assignments page.

Assign contract line clauses.

Contract Item Line Notification Assignments

CS_AGREE_CLN_WF

Click the Notification Assignments link on the Contract Line Agreement Assignments page.

Assign contract line notifications.

Contract Category Agreement Assignments

CS_AGREE_CAT

Supplier Contracts, Create Contracts and Documents, Contract Entry

Click the Contract Agreement button for the category line on the Contract Entry page.

Assign contract category agreements.

Clause Assignments

CS_AGREE_CAT_CLAUS

Click the Clause Assignment link on the Contract Category Agreement Assignments page.

Assign contract line clauses.

Contract Category Notification Assignments

CS_AGREE_CAT_WF

Click the Notification Assignments link on the Contract Category Agreement Assignments page.

Assign contract category notifications.

Click to jump to top of pageClick to jump to parent topicAssigning Contract Header Agreements

Access the Contract Header Agreement Assignments page (Supplier Contracts, Create Contracts and Documents, Contract Entry, and click the Contract Agreement link on the Contract Entry page.

Use this page to assign agreements to a contract. You can select from an existing list of agreements, manually add agreement information, or modify information that was converted from a Strategic Sourcing event. The page initially displays with the basic information about the contract, including the contract ID, status, vendor, and version number.

If you use a predefined agreement code, the information from the agreement appears as default information on the Contract Header Agreement Assignments page. You can change this default information, but changes to the predefined information affect only the specific contract. The changes are not made to the original agreement. The information that you define for the agreement exists only for the life of the contract.

Note. When you select an agreement to assign to the contact, ensure the agreement is effective-dated as of the contract begin date. If the agreement is not effective, the system issues a message when you select a result type.

If agreement terms and verification steps are unique to a particular contract, you can define those terms and steps for the contract without first defining them as an agreement code. In this case, the information is available only for the life of the contract. While agreement information is also copied to another contract, when you use the copy function to create a new contract, the agreement information will not be a part of the agreement library. As with predefined agreement codes, you can add clauses and notifications.

You can also predefine agreement information on a contract if the contract was generated from a PeopleSoft Strategic Sourcing event. You can associate agreement codes with Strategic Sourcing bid factors that are subsequently used with Strategic Sourcing events. When you award a buy auction to a bidder and create a contract, the system converts the bidder's responses to bid factor questions to the agreement information on the contract.

The page contains agreement details and comments as well as the verifications steps and owners who are required to determine if the agreement is compliant or not. A contract can have multiple agreements with each one having a different set of verification steps. You can also assign clauses and notification information for each individual agreement.

When you complete this page, you can create the document for the agreement and its clauses. If a document already exists for the agreement, you need to refresh or re-create the document to incorporate any changes you make to the agreement information.

Sequence

Displays the agreement sequence code. If you are adding agreements to a contract initially, the default sequence number is 10, but you can change it as needed. When adding additional agreements, you should leave a gap between sequence numbers in case you want to insert an additional agreement between two existing ones. To insert an additional agreement, click the + button and assign the sequence number based on where the agreement should appear.

The sequence number controls the order in which any associated clauses are added to the document. Clauses for the first agreement are added first, clauses for the next agreement are added second, and so on.

If the system automatically adds agreements when it converts the PeopleSoft Strategic Sourcing event to a contract, the agreements are added with sequence numbers in increments of 10.

Include in Contract Document

Select to include the agreement information and its associated clauses on the purchasing contract when you author the contract document. You could set up the agreement so that it serves only as an internal reminder to collect certain documentation or to perform steps before the completion of the contract. In these instances, the information should not be included in the wording of the contract document.

Compliance Status

Displays the current status of this agreement. You cannot change the status using this page. Use the Update Agreement Status page to update the status.

Values are:

Cancelled: Indicates that the agreement has been canceled.

Not Compliant: Indicates that the verification steps have been completed, but the agreement is not in compliance with the agreed upon terms.

Not Set: Indicates that the agreement steps are still in process or not yet started. This value is the initial setting when the agreement is added.

Compliant: Indicates that the verification steps are completed and the agreement is in compliance with the set terms. If you change any aspect of the agreement after this value has been set to Compliant, the system sets the status back to Not Set.

Agreement Code

Select a predefined code or enter an ad hoc code. If you select a predefined code, the system populates the rest of the agreement with the information defined for that code. If you are entering an ad hoc agreement, you must complete all the required fields. If the contract was created from a PeopleSoft Strategic Sourcing event, the system converts bid factor responses to the agreement information.

Agreement Description

Displays the description that was previously assigned if you entered an agreement code. If you are creating an ad hoc agreement, enter a description.

Result Type

Select a value that indicates how you are measuring the results of the agreement. If you selected a predefined agreement code, the system displays the default value from that code. When any result type except None is selected, the system provides a Negotiated Result field.

Field values include:

Date: Select to use a calendar date as the type of result for measuring the output of the agreement.

Metric: Select to measure the performance against a contract agreement using a metric-based type. When you select this type, the Metric ID field is made available and you can select the type of metric you want to use to measure performance against negotiated terms for contract agreements.

Monetary: Select to use costs that relate to the agreement as the result measurement.

Numeric: Select to use figures, such as the number of hours a day a crew has access to the work site, to measure the agreement.

Text: Select to use a question that requires a text answer, such as a description of work completed.

Yes/No: Select to use a question with a yes or no answer as the measurement of whether the agreement is compliant or not compliant.

Negotiated Result

When you select a result type other than None, this field becomes available for input. The negotiated result is the expected outcome of the agreement and represents the value of that outcome. The value for this field depends on the value you selected in the Result Type field. If you selected Date as a result type, enter a date here. If you selected Monetary or Numeric as the result type, enter the amount here. If you selected Text, an expanded field appears for you to type instructions or descriptions of up to 256 characters. For metric-based agreements, this value represents the target percentage for the agreement. For example, for an on-time performance by receipt metric, you might be expecting a 95 percent on-time measurement for this contract.

Metric ID

When the Result Type field value is Metric, this value must be specified to determine the type of metric to be tracked. For example, to track the on-time performance by quantity metric, you would select OnTime Qty from the list of values.

UOM (unit of measure)

Select a unit of measure that defines the numeric value entered in the Negotiated Results field. The UOM field is available and required if you selected a result type of Numeric. This value can represent, for example, hours or days.

Currency

If you selected a result type of Monetary, the Currency field is available for input and is a required field. Select the currency that defines the monetary amount entered in the Negotiated Results field.

Perf. Tolerance (performance tolerance)

If you selected a result type of Metric, the Perf. Tolerance field appears. Enter a tolerance percentage. The performance tolerance defines the percentage below the negotiated result that you allow before a performance is considered unacceptable. For performance results that are above the performance tolerance, but are below the negotiated result, the system will send performance warnings if notifications have been set up to send the warning.

Target Date

Enter the date by which the terms of the agreement must be completed to be compliant. You can enter a date or the system will enter the date automatically by calculating when an existing agreement code is selected. The date is based on the contract start or end date or a specified number of days prior to or past the contract start or end date.

Notification Comments

Enter text that will appear in the notification worklist if notifications are set up for the agreement.

Financial Implications

Enter text that describes any financial implications whether the agreement is or is not met. The text might specify a penalty assessed or a bonus paid to the vendor.

See Also

Setting Up Basic Agreement Information

Click to jump to top of pageClick to jump to parent topicSetting Up Header Agreement Verification Steps

Access the Contract Header Agreement Assignments page (Supplier Contracts, Create Contracts and Documents, Contract Entry, and click the Contract Agreement link on the Contract Entry page.

Use the Verification Steps grid on the Contracts Header Agreement Assignments page to define the steps required to validate the agreement. If you previously selected a predefined agreement code, the system automatically populates the steps that can be changed, added to, or deleted. If you are adding an ad hoc agreement or if the agreement information originated from a PeopleSoft Strategic Sourcing event, you can add steps here.

Use the Verification Steps grid box to establish verification methods and verification step owners. To update header agreement statuses, use the Monitor and Update Agreements component to access the Update Agreement Statuses page where you can view and manage verification processes.

Step

Displays the system-assigned step that defines the order in which verification is completed. The system begins the sequence number with 10, but you can change the sequence. You should leave gaps between the step numbers in case you want to insert additional steps at a later date.

Verification steps define the criteria necessary to fulfill the agreement. After you define information for any field for the step, the system assumes you are adding verification steps to the agreement. You can delete steps on an existing contract without affecting the basic agreement.

Description

Enter a description for the verification step. An example would be, what document or inspections are required to complete the step. If a verification step is added to the agreement, this field is required.

Step Owner

Select the person responsible for verifying that the step was completed. Verification might include the step owner collecting documents or notifying the contract administrator whether a step is compliant. The step owner can be someone internal to the company or an external contact or vendor.

Verification Method

Select the method by which you want this step verified. The method defines how a verification owner indicates a step was completed. This field is required if steps are added to the agreement. Verification methods include:

Attachment: Select to indicate that the verification of this agreement step is accomplished by posting supporting documentation. The verification owner can attach supporting material using the Update Agreement Statuses pages.

Comments: Select to indicate that the verification can be made by entering text or comments.

Date/Time: Select to indicate that a date and time stamp will be provided when the step has been completed.

Notify: Use this option when no action is required to signify the step is completed. If a notification is assigned to the step, the system notifies selected roles when the due date of the step is approaching. You can use this method to send periodic informational notifications or reminders to interested parties.

Yes/No: Select to indicate that the verification owner can update the verification step online using a yes or no response.

Due/Start Notify Date

For nonmetric agreements steps, this value indicates the date that this verification step must be completed. The due date defaults to the target date of the agreement, or is a calculated date based on the contract start or end date.

For metric-related steps, this date indicates when you want to start evaluating metric-agreement performance. You use metric-related agreements to track supplier performance and a notification process to warn specified users about supplier performance. PeopleSoft Supplier Contract Management uses procurement history from PeopleSoft Purchasing to gather transactional-agreement compliance information for metric-related agreements. This enables you to use summaries of purchase order receiving transactions to measure a vendor's performance and compliance to a contract agreement for quality and on-time performance.

When you define a metric-related agreement, you must use the System value in the Verification Method field for a row in the Verification Steps grid.

For system verification methods, the value in the Due/Start Notify Date field represents the date to start notification to users for any error or warning conditions related to the metric. The system uses this value in conjunction with the value that you enter in the As of Date field on the Process Notification run control page. If the Due/Start Notify Date field value is less than or equal to the As of Date field value on the run control, the system checks this metric to determine if notifications need to be sent.

You use the Process Notifications page to periodically run the Workflow Notification process. The Process Notifications job initiates the reminders and notifications specified on an agreement. These reminders and notifications are defined for an agreement when changes in the agreement's status occur for the agreement or verification step, when you want to notify the recipient about a pending or past due date, and when a supplier is out of tolerance or not meeting minimum performance requirements for a contract. Performance requirements that are system based are based on metric-related agreements.

See Processing Agreement Notifications.

Activity Status

Displays the status of the verification step. The status is not updated here. Use the Verification Step link on the Update Agreement Status page to update the status.

Values are:

Cancelled: Indicates that the step owner has canceled the verification of this step.

Completed: Indicates the step has completed.

Failed: Indicates the step has not been completed by the agreed upon date.

In Process: Indicates that the verification process has started or the task is in the process of being completed.

Not Started: Indicates that the step owner has not started the verification process.

Comments

Access the Comments tab.

Notification Comments

Enter a description that the system uses if notifications are associated with the step.

Click to jump to top of pageClick to jump to parent topicAssigning Contract Header Clauses

Access the Contract Header Clause Assignments page (click the Clause Assignments link on the Contract Header Agreement Assignments page).

Use this page to assign clauses to contract header agreements. These clauses pertain to the terms of the contract in general. You can alternately assign clauses to specific line items by defining agreements at the line level.

If you add a predefined agreement and clauses are associated with the agreement, those clauses appear here. Likewise, if the contract was created from a PeopleSoft Strategic Sourcing event and bid factors with associated clauses were added to the contract, the system displays them here.

As with verification steps, you can add or delete clauses without affecting the basic agreement or bid factor definition. You cannot change the text of the clause here. Use the Clause Definition page to update clauses. The order in which the clauses were added to each agreement determines the order in which they appear in the document.

See Also

Assigning Clauses to Agreements

Click to jump to top of pageClick to jump to parent topicAssigning Contract Header Notifications

Access the Contract Header Notification Assignments page (click the Notification Assignments link on the Contract Header Agreement Assignments page).

Use this page to define who should review this contract header agreement. You can assign notifications for changes in status of the header-level agreements, as well as reminders for the verification steps associated with the header agreements.

If you selected a predefined agreement, the system copies the notifications from that agreement. You can change any attribute about the notification, delete existing notifications, or add additional notifications without affecting the basic agreement.

See Also

Assigning Notifications for Agreements and Steps

Click to jump to top of pageClick to jump to parent topicAssigning Contract Item Line Agreements

Access the Contract Item Line Agreement Assignments page (Supplier Contracts, Create Contracts and Documents, Contract Entry, and click the Contract Agreement button for the line item on the Contract Entry page).

Use this page to assign an agreement to a line item on a contract. This feature makes it possible to define contract terms and clauses specific to an item or item category. You can assign agreements to specific line items by clicking the Contract Agreement button in the Lines grid of the Contract Entry page. Use this button to access the Contract Item Line Agreements Assignments page. This page is identical to Contract Header Agreements Assignments page that you use to assign agreements at the contract header level. Field values and the use of the pages are similar.

Use the Verification Steps grid box to establish verification methods and verification step owners. To update item line agreement statuses, use the Monitor and Update Agreements component to access the Update Agreement Statuses page where you can view and manage verification processes.

Note. Metric agreements are not available at the line- and category-agreement level.

See Also

Assigning Contract Header Agreements

Click to jump to top of pageClick to jump to parent topicAssigning Contract Line Clauses

Access the Contract Line Clause Assignments page (click the Clause Assignment link on the Contract Line Agreement Assignments page).

Use this page to add a clause to an agreement for a contract line item. Click the Description link to access details about the item. You can add additional clauses by clicking the Add a New Row button.

See Also

Assigning Clauses to Agreements

Click to jump to top of pageClick to jump to parent topicAssigning Contract Item Line Notifications

Access the Contract Item Line Notification Assignments page (click the Notification Assignments link on the Contract Item Line Agreement Assignments page).

Use this page to define notification assignments for an agreement that is linked to a line item. Click the Description link to access item details

See Also

Assigning Notifications for Agreements and Steps

Click to jump to top of pageClick to jump to parent topicAssigning Contract Category Agreements

Access the Contract Category Agreement Assignments page (Supplier Contracts, Create Contracts and Documents, Contract Entry, and click the Contract Agreement button in the Contract Categories grid on the Contract page).

Use this page to assign an agreement to a category on a contract. This feature makes it possible to define contract terms and clauses specific to an entire group of items in a contract category.

Use the Verification Steps grid box to establish verification methods and verification step owners. To update category agreement statuses, use the Monitor and Update Agreements component to access the Update Agreement Statuses page where you can view and manage verification processes.

See Also

Assigning Contract Header Agreements

Click to jump to top of pageClick to jump to parent topicAssigning Contract Category Clauses

Access the Contract Category Clause Assignments page (click the Clause Assignments link on the Contract Category Agreement Assignments page).

Use this page to add a clause to an agreement for a contract category. The system adds these clauses to the transactional contract document when you specify this agreement for either the contract header or contract line.

See Also

Assigning Clauses to Agreements

Click to jump to top of pageClick to jump to parent topicAssigning Contract Category Notifications

Access the Contract Category Notification Assignments page (click the Notifications Assignment link on the Contract Category Agreement Assignments page).

Use this page to define notification assignments for an agreement that is linked to a category. You can indicate to use notifications when a change in status occurs for an agreement or step or if you want to notify the recipient about a pending or past due date.

See Also

Assigning Notifications for Agreements and Steps