Introduction to Oracle Contracts

This chapter gives an overview of Oracle Contracts.

This chapter covers the following topics:


This chapter provides an overview of Oracle Contracts and its key features.

Oracle Contracts Overview

Contracts play a critical role in all businesses. In fact, contracts govern most business transactions. Companies rely on contracts to define:

Oracle's contract management solution includes Oracle Sales Contracts, Oracle Procurement Contracts, Oracle Service Contracts, and Oracle Project Contracts. Oracle Contracts provides the common infrastructure components that other contracts modules need. The common components are:

Key Features

The key features of the application are:

Contract Terms Library

Contract administrators and legal personnel may negotiate and author a vast number of complex contracts each year. Maintaining corporate control on the terms for each contract can be a time-consuming and daunting task. The application simplifies this process by providing a centralized contract terms library.

Companies that operate globally can use the library to establish company-wide standards and enforce them on a global basis. To accommodate local or country-specific regulations, they can give the local library administrators the flexibility of tailoring these global standards.

With access to the library, you can:

Authoring Contract Terms

Oracle provides comprehensive contract authoring capabilities that are embedded in the procurement and sales business flows. For instance, with Oracle Procurement Contracts, you can author contract terms in the Oracle Sourcing and Oracle Purchasing applications. Using Oracle Sourcing or Oracle iSupplier Portal, you can negotiate contract terms with your suppliers.

Similarly, with Oracle Sales Contracts, contract terms authoring capabilities are available through Oracle Quoting and Oracle Order Management. You can also publish contract terms to the storefront using Oracle iStore. Also, Oracle iStore uses Contract Expert rules to automatically determine the appropriate clauses to any specific business situation.

You can author contracts using the following features:

Contract Document Management

Storing and retrieving paper-based or electronic versions of a contract across multiple sites and geographies can be cumbersome. Oracle Contracts provides a central document repository to store all contract documents that users can access globally.

Users can upload images of signed paper contracts and other supporting documents into the repository, and easily retrieve the documents for the latest version of any contract. Users can also retrieve documents for prior versions of a contract, eliminating the need to track contract documents and amendments in filing cabinets.

Contract Deliverables Management

Businesses enter into contractual agreements with their trading partners, and as part of the contractual agreement will have commitments to fulfill. The commitments on the business documents, besides products and services that are bought or sold, are classified as deliverables, under the Terms and Conditions of the business document. In addition to the contractual commitments that businesses need to fulfill, they might define other internal tasks that contribute to the overall execution of the business document.

You can define deliverables as part of the contract template creation process. If a business document refers to a contract template, all deliverables that are associated with that contract template are copied to the business document.

Contract Repository

Contract Repository enables you to create miscellaneous contracts, such as license agreements, nondisclosure agreements, and merger agreements, which are not specifically related to the functionality of other Oracle applications. You can also create purchase or sales agreements for miscellaneous items that are outside the normal purchasing or sales flows, for which full execution capabilities are not required.

Contracts Workbench

A single view of all enterprise contracts is essential for effective management of contract activities, and for reporting and analysis of outstanding supplier and customer commitments. Contracts Workbench gives you access and visibility to all contractual agreements in the enterprise.

Contracts Workbench enables contract administrators to see which contracts require attention, provides extensive search capabilities, and has links to common tasks such as creating or approving a contract. Legal and financial managers can use Contracts Workbench as a research tool. A flexible security model ensures that contracts can be viewed or updated only by authorized users.