Contract Terms Library Administration

This chapter describes administration of the Contract Terms Library.

This chapter covers the following topics:

Contract Terms Library

Contract Terms Library is a central repository for all preapproved clauses, contract templates, and Contract Expert rules that are used to create contracts across the enterprise.

The library gives the legal department and business organizations a powerful tool to create reusable clauses and templates. Companies can manage clauses and templates centrally in a global operating unit. Local operating units can then use or duplicate these clauses and templates and customize them to meet their specific local requirements. Clauses can be grouped into sections and stored as reusable contract templates to codify best practices. Templates provide a framework for rapid assembly and creation of contracts. These capabilities provide the foundation for standardization of the contract process and control across the enterprise. Another key feature of the Contract Terms Library is the ability to establish global standards and enforce these standards enterprise-wide.

You can use the Contract Expert feature of Oracle Contracts to create rules that represent these business policies and standards. For more information, see the Contract Expert chapter.

In addition to the Library features described previously in this section, the Contract Terms Library supports the creation and maintenance of a library of folders, sections, and variables.

Managing Standard Clauses

A standard clause is the text that describes the legal or business language that is used to author a contract. Clauses are drafted based on both business and statutory requirements.

This section covers the following topics:

Creating Standard Clauses

You can create standard clauses in the following ways:

Creating a New Clause

Use these steps to create a new clause.

Steps

To create a new clause:

  1. Navigate to the Create Clauses page.

    Navigation: Library > Clauses tab > Create Clause button

  2. Select an operating unit from the list of values.

    The list of values is based on the security profile that was defined for the responsibility that you are using. For more information, see the following sections:

  3. Enter the following attributes:

    • Number: This value can be manually entered or automatically generated. To automatically generate the number, see the Setting Up AutoNumbering section.

      Note: You could have the same clause number assigned to multiple clauses if you choose to manually number clauses. Only the clause title is unique within a given operating unit.

    • Clause Title: Enter a title for the clause. The clause title is unique within an operating unit.

    • Display Name: Optionally, enter the display name for the clause. The display name does not have to be a unique name. Your operating unit can have alternate clauses with the same display name. The system uses the display name in a printed contract field. If you leave this field blank, the clause title is used as the display name.

    • Intent: Select the intent of the contracts that can use the clause: Buy or Sell.

      Note: Based on the setup for the OKC: Terms Library Intent profile option, you can create clauses for buy, sell, or both intents. If you set the profile option to either Buy or Sell, the system provides read-only access to the Intent field. This profile option also governs other features in the Contract Terms Library, including contract templates, variables, and Contract Expert rules.

    • Type: Use the Type field to classify the clause according to the business purpose (for example, General or Payment terms). Select a clause type from the list of values. For more information, see the Setting Up Lookup Codes section.

    • Default Section: Optionally, select the default section from the list of values. You can use sections as headings to format contracts. For more information, see Managing Sections. The Default Section is used only in Contract Expert. When you run Contract Expert, each clause that the system selects is placed into the default section that is provided for the clause. If a default section is not provided for the clause, the system places it into the default section that is provided for the contract template.

    • Description: Optionally, enter a description for the clause.

  4. Status: The system controls this field. During the creation process, the clause is in Draft status.

  5. Version: The system generates the version number.

  6. Start date: Accept the default or change the start date.

  7. End date: Optionally, enter an expiration date for the clause. The expiration date cannot be earlier than the current system date.

  8. Provision: Provisions are used in negotiation documents in Oracle Sourcing only. If applicable, select the Provision check box. If the first version of a clause is a provision, all subsequent versions of the clause will retain this attribute. You cannot update this attribute on subsequent versions.

  9. Protect Text: To prevent modification to the clause text in documents, select the Protect Text check box. On subsequent versions, you can update this attribute. This will not impact business documents that already contain these clauses.

  10. Global: To make the clause available to all operating units, select the Global check box. This field is available only in the Global operating unit and cannot be updated on future versions of the clause. For more information, see the Managing Clauses Across Operating Units section.

  11. Text: Enter the necessary text for the clause. Clause texts can include business variables. For more information about embedding variables, see the Managing Variables section. In the Text area, you can choose one of following modes:

    • Rich Text: The Rich Text editor provides special formatting of the text that is driven by business and legal requirements. The Rich Text editor provides a toolbar and a text area. You can format the text by choosing one of the following icons on the toolbar:

      • Cut

      • Copy

      • Paste

      • Bold

      • Italic

      • Underline

      • Align Left

      • Align Center

      • Align Right

      • Number Order List

      • Bulleted List

      • Decrease Indent

      • Increase Indent

    • Text: The Text mode provides a plain text area only. If you use the Rich Text mode to enter the clause text and then toggle to the Text mode, the system displays the HTML source for the text you have entered. However, the system prints the clause using the Rich Text features even if you have toggled to the Text mode.

  12. Add Variables: Click the Add Variables button to search for available variables. The Add Variables page appears. From this page, you can search for available variables, then click the Insert icon to add the variable that you want into your text, at the location of the cursor within the text area. In the clause text, variables are displayed as tags in the format [@Variable Name@].

  13. Instructions: Optionally, enter instructions on how and when to use the clause in a contract template or business document. Users can view these instructions when they add the clause to a contract template or business document.

  14. Allow Include by Reference: Select the check box to replace the clause text with the reference text when the clause is used in a contract. Optionally, enter the following information:

    • Reference Source: Provide the source of the clause that cannot be printed in full text.

    • Reference Text: Enter the reference text. The system prints, on a printed contract, the reference text instead of the clause text.

      Note: If you select the Allow Include by Reference check box, the Reference Text field becomes mandatory.

  15. If applicable, click one of the following buttons:

    • Submit: To submit the clause for approval, click this button.

    • Apply and Add Details: Click this button to save your work and move to the Update Clause page. The Update Clause page includes the following subtabs:

      • General: Use this subtab to update general information that was discussed in the previous steps.

      • Related Clauses: For detailed information, see the Defining Related Clauses section.

      • Clause Folders: For detailed information, see the Assigning Clauses to Folders section.

      • Version History: Use this subtab to display the history of the clause versions.

    • Apply: Click the Apply button to save the clause and close the Create Clauses page.

    • Cancel: Click the Cancel button to close the Create Clauses page without saving the clause.

Considerations for Setting Up and Using Clauses

Consider the following when setting up and using clauses:

Duplicating an Existing Clause

You can use the Duplicate feature to create new clauses from existing ones. The Duplicate feature is available from the Search and View Clause pages.

Steps

To duplicate an existing clause:

  1. Navigate to the Search Clauses page.

    Navigation: Contract Terms Library > Clauses tab

  2. Search and select a clause.

    For more information, see the Searching for Clauses section.

  3. Click the Duplicate button.

  4. In the New Clause Title field, enter a unique title.

  5. Optionally, choose to copy folders and related clauses.

  6. Click the Save and Continue button.

  7. Enter or change the information as described in the Defining Clauses section.

Note: After you create a new clause, you cannot change its operating unit. The operating unit from the original clause is retained. To copy a clause into a different operating unit, you must create a new clause in that operating unit and then copy and paste individual details such as clause text, description, and instructions.

Defining Related Clauses

For any given clause, you can define alternate and incompatible clauses. You can use alternate clauses as a substitute for the main clause on a contract. You can define clauses as mutually incompatible to prevent them from being used on the same contract.

Note: You can add alternate and incompatible clauses to an approved clause without requiring the creation of a new version. Clause relationships are defined at the clause level and not at the version level. So if the relationship is defined in one version, it will continue to apply to all future versions. The system will use the latest valid versions of these clauses on a business document when establishing the relationships.

Tip: Before defining clauses with alternate relationships, decide whether you want to use Contract Expert in the implementation. The reason is that alternate relationships can be built using Contract Expert rules. Consider using clause alternates in those cases that lend themselves to more standard contracting scenarios that are not driven by rules that can vary from one contract to another.

Steps

To define related clauses:

  1. Navigate to the Create Clauses or Update Clauses page.

    Navigation: Library > Clauses tab > Create Clause button

  2. Open the Related Clauses subtab.

  3. Click the Add Another Row button.

  4. In the Relationship field, select one of the following options:

    • Alternate

    • Incompatible

  5. In the Clause Title field, enter the clause title. You can also use the List of Values icon to search and select the clause.

  6. Click Save.

  7. Click the Compare button to compare related clauses. Select the two clauses that you want to compare and then click the button.

  8. Click the Compare with Current button to compare the related clause with the current clause. Select only one clause from the list and click the button.

  9. Click the Remove button to delete a clause relationship.

Assigning Clauses to Folders

You can assign clauses to folders from the Update Clause page.

Prerequisites

Define folders.

Steps

To assign clauses to folders:

  1. Navigate to the Clauses page.

    Navigation: Contract Terms Library > Clauses tab

  2. Open a clause for update.

    For more information, see the Updating Clauses section.

  3. Open the Clause Folders subtab.

  4. Click Add Another Row.

  5. In the Name field, enter the folder name. You can also click the List of Values icon to search and select the folder name (see Searching for Folders).

  6. Click Save or Apply.

Approving Clauses

To make standard clauses available for use in contracts, you must first approve them. You can:

Prerequisites

Set up an approver. For more information, see the Setting Up Operating Units section.

Steps

To approve clauses:

  1. Navigate to the Clauses page.

    Navigation: Contract Terms Library > Clauses tab

  2. Create a new clause, or search and open a clause in Draft status.

    For more information, see the Creating a New Clause , or Searching for Clauses section.

  3. Click the Submit button to:

    • Change the clause status from Draft to Pending Approval.

    • Send a workflow notification to the approver.

  4. The approver opens the notification and reviews the clause.

  5. The approver can approve, reject, or reassign the clause.

    As the result:

    • The clause status is changed to Approved or Rejected.

    • A workflow notification informs the author of the clause of the decision.

Setup Considerations for Approving Clauses

Consider the following when setting up the process for approving clauses:

Managing Clauses Across Operating Units

This section discusses how companies with global operations can manage clauses across multiple operating units. This feature is useful for companies that contract with customers across the globe with operations in different countries and locations. In this document, we refer to those operating units that have been set up to use the Contract Terms Library as operating units. For information about how to set up operating units, see the Setting Up Operating Units section.

A central entity can define global clauses and make them available for use by local operating units. To define global clauses, you must identify your global operating unit, usually the corporate headquarters. The designated global operating unit is responsible for the creation of clauses for business terms that must be enforced globally. On approval, the clauses are made available to local operating units. A workflow notification is sent to the local operating units that must review the clause.

In the local operating units, library administrators review the clause and decide whether it needs to be modified to meet local requirements. If necessary, the clause can be modified (localized) and routed for internal approvals. If not, the clause can be adopted with no changes or modifications and routed internally for approvals. Alternatively, local operating units can be set up to automatically adopt all global clauses.

After approvals, the localized or adopted clause is available for use in contracts that are created locally.

Prerequisites

Before creating global clauses, you must:

Adoption of Global Clauses by Local Operating Units

You can set up your local operating units to adopt global clauses automatically or manually.

Note: If you are not changing the context or intent of the clause text and only translating it into a local language, you can select the Translation Only check box. This is for informational purposes and can be used to report on why a clause was localized.

This section covers the following topics:

Creating Global Clauses

Use these steps to create a global clause.

Steps

To create global clauses:

  1. Create a standard clause. For more information, see the Creating Standard Clauses section.

  2. Select the Global check box. This check box is available only in the designated global operating unit.

    Note: When a global clause is approved, it remains global on all subsequent versions. However, if an earlier version of a clause is not global, you can make the subsequent versions global.

Notifying Local Operating Units

Prerequisites

Set up your library administrators. For more information, see the Setting Up Operating Units section.

When a global clause is approved, the system sends a notification to the library administrators in all local operating units to consider the clause for adoption. In case a local operating unit is set to automatically adopt global clauses, a notification is sent to this operating unit informing the local administrators that a new global clause has been automatically adopted for that operating unit.

Reviewing Global Clauses for Adoption

As the library administrator in a local operating unit, you can review and adopt Global clauses.

Steps

To review global clauses for adoption:

  1. Navigate to the Clauses page.

    Navigation: Contract Terms Library > Clauses tab

  2. Search for Global clauses. For more information, see the Searching for Clauses section.

    Note that:

    • A global clause that is approved (in the global operating unit) is available for adoption in local operating units. If a global clause is on hold or expired, although the clause is displayed in the search results, local operating units cannot adopt or localize it.

    • In a local operating unit, the first version of an adopted global clause must be manually assigned to a folder that is created in that operating unit. However, after adoption, the system assigns the subsequent versions of the global clause to the same folder.

    • Each time that a new version is created and approved for a global clause, that version becomes available for adoption in the local operating units. Each version of a global clause must be adopted individually.

  3. In the Adoption Type field, select the Available for Adoption option from the list of values.

  4. Click Go to view the list of available clauses.

  5. Review every clause on a case-by-case basis and decide whether to adopt the clause as is or localize it.

  6. Click Review for Adoption to view the full text and clause details. At this point, you can:

    • Adopt the clause as is. In this case, you only need to submit this clause for local approval.

    • Localize the clause. When you localize a clause, you can modify the text and check the Translation Only check box to indicate that the changes were for translation purposes. Submit the localized clause for approval upon completing the modifications.

Considerations for Defining Global and Local Clauses

Consider the following points when defining global and local clauses:

Approving Global Clauses in Local Operating Units

At the time a Global clause is adopted and submitted for local approval, the library administrator receives a Workflow notification requesting approval for adoption of the clause.

The local administrator can approve or reject the clause. After approval, the Global clause (or the modified localized clause) becomes available for use in the local operating unit. If a clause is rejected, the local operating unit can choose to continue modifying the clause, based on the rejection comments, or modify the adoption type. For instance, a clause that was previously adopted as is can now be localized.

When local operating units adopt a Global clause, the system sends a notification to the global operating unit with details on date and type of adoption.

Note: When approving or rejecting a clause or contract template, you can use the Comments section to provide your remarks in the Approval notification. Your comments are visible to the user who has submitted the original approval request.

Also, you can send the approval notifications by e-mail. However, this would require additional configuration. For more information on how to set up the e-mail client to receive all notifications, see the Oracle Applications System Administrator’s Guide.

Viewing Adoption Status

A global operating unit can monitor when and how global clauses are adopted across local operating units. The Adoption Status report provides an overview of the adoption status across multiple local operating units for a given global clause. This report is available only in the global operating unit and enables the global operating unit to analyze cases in which the global clauses are not adopted in a timely manner.

Steps

To view adoption status:

  1. Navigate to the Clauses page.

    Navigation: Contract Terms Library > Clauses tab

  2. In the global operating unit, search for Global clauses. For more information, see the Searching for Clauses section.

  3. Click the clause title to view the clause detail.

  4. Select the View Adoption Status option from the list.

  5. Click Go.

    The View Adoption Status report provides the following information:

    • Operating Unit Name

    • Clause Title

    • Version

    • Adoption Type (indicates whether the global clause was adopted as is or localized)

    • Translation Only (indicates whether the global clause was translated only to the local language)

    • Adoption Status (indicates whether the clause was approved in the local operating unit)

    • Adoption Date (indicates the date that the clause was adopted)

Adopting Global Clauses in a New Operating Unit

For any new operating unit that is set up to adopt global clauses, Oracle Contracts provides a concurrent program to adopt all global clauses that were created before the new operating unit was created.

To adopt the global clauses, you must run the Adopt Global Clauses for a New Operating Unit concurrent program. Select the operating unit for which this program must be run, and provide a value for the Commit Size for the Run parameter.

You do not need to rerun the concurrent program for a given operating unit more than once if all the migrated clauses and new global clauses have been created in the global operating unit at the time of running the concurrent program.

The clause status in the new operating unit can be one of the following:

Note: If the global operating unit contains clauses that have been migrated from 11.5.9 or earlier, these clauses will automatically be adopted in the new operating unit, even if the global operating unit was set to manually adopt clauses.

Searching for Clauses

You can search or browse to find clauses in the Clauses Library. This section covers the following topics:

Searching for Clauses

Use these steps to search for clauses.

Steps

To search for clauses:

  1. Navigate to the Clauses page.

    Navigation: Contract Terms Library > Clauses tab

  2. In the Search region, search for clauses by:

    • Operating Unit (mandatory field)

    • Keyword

    • Type

    • Title

    • Number

  3. To access additional search options, click the Show More Search Options link. The options are:

    • Intent

    • Status

    • Start and end dates

    • Provisions only

    • Variables used in the clause

    • Used in templates

    • Default section

    • Show all versions check box

    • Adoption Type (available only in local operating units)

      To perform your search, you must enter information in the Operating Unit field and one of the following fields:

    • Number

    • Title

    • Keyword

    • Type

    • Status

    • Start Date

    • End Date

    • Used in Templates

    • You cannot perform blind searches or start your search criteria with the wildcard character (%).

    • If you do not select the Show All Versions check box, the system displays only the latest version of the clauses that match the search criteria.

    • Description does not work with leading searches. Also, the description returns only those clauses for which the description begins with the search criteria that you enter. For instance, if you enter A% in the Description field, only those clauses for which the description begins with the letter A are returned.

  4. Click Go to view the search results.

  5. In the Search Result section, select the check box for any clause and click one of the following buttons:

    • Submit: Submit the clause for approval.

    • Duplicate: Create a new clause by copying from an existing clause.

    • Create New Version: Create a new version.

    • Review for Adoption: This button is available only to local operating units for adopting global clauses. For more information, see the Approving Global Clauses in Local Operating Units section.

Using the Keyword Search Feature

You can search for clauses in the Contract Terms Library using the Keyword Search feature. The system searches for clauses that contain the text that you enter in any of the following fields:

To perform the keyword search, you must run the following concurrent programs periodically:

If you have not run the concurrent programs at regular intervals, the search will not provide accurate results. The frequency for running these programs must be decided on a case-by-case basis. You can schedule the concurrent programs to run together automatically at predefined intervals.

Note: You do not need to run the foregoing concurrent programs for each operating unit. Running the program synchronizes the data across the operating units that use the Contract Terms Library.

Browsing for Clauses

In addition to search, you can use the Browse feature to search for clauses using folders.

Steps

To browse for a clause:

  1. Navigate to the Clauses page.

    Navigation: Library > Clauses tab

  2. Click Browse to search through folders for the clause that you want to retrieve. The system displays the list of available folders.

  3. To view all clauses that are assigned to a folder, select the check box for that folder.

  4. Optionally, click the clause title to view clause details.

  5. If applicable, select the check box for any clause and click one of the following buttons:

    • Submit: Submit the clause for approval.

    • Duplicate: Create a new clause by copying from an existing clause.

    • Create New Version: Create a new version.

    • Review for Adoption: This button is available only to local operating units for adopting global clauses.

    • Update: Open the clause for update.

Contract Clause Analysis Report

The Contract Clause Analysis report enables you to search for the contracts where a given set of clauses is used. After entering the search criteria for the clauses and the contracts, the system displays a list of all appearances of the clauses in those contracts. For more information on Contract Clause Analysis report, see the online help topics in Oracle Contracts, Oracle Procurement Contracts, or Oracle Sales Contracts.

Managing Changes to Standard Clauses

This section covers the following topics:

Updating Clauses

You can modify clauses and their versions, subject to certain business rules. When updating a clause, you can:

Note: A new version is required if:

Steps

To update clauses:

  1. Navigate to the Clauses page.

    Navigation: Contract Terms Library > Clauses tab

  2. Search for the clause that you want to update. For more information, see the Searching for Clauses section.

  3. Verify the clause status:

    • If the clause is in Draft status, all the fields are available for update.

    • If the clause is in any other status, certain fields are protected and cannot be updated.

  4. Click the Update icon. The system opens the clause for update.

  5. Make the necessary changes:

    • Except for the first version of a clause in Draft status, you cannot change the clause number, title, and intent.

    • For clauses with the Approved status, you cannot make changes to the following fields: Display Name, Start Date, Provision and Global check boxes, Clause Text, and Allow Include by Reference.

    • You cannot update the intent on a draft clause if the clause text contains an embedded variable tag because variables are based on the intent.

  6. Select one of the following actions:

    • Create new version (not available for clauses in Draft status)

    • Submit for approval (available only for clauses in Draft status)

    • Put on hold (not available for clauses in Draft status)

    • Delete (available only for clauses in Draft status)

    • Apply

    • Save

    • Cancel

Versioning Clauses

The Versioning feature enables you to make changes to clauses that are already in use on contracts. You can modify clause details, including clause text and description. New versions must be approved before you can use them in contracts.

A new version is required if:

Steps

To version clauses:

  1. Navigate to the Clauses page.

    Navigation: Library > Clauses tab

  2. In the Search region, enter the search criteria for the clause that you want.

  3. Click Go. The system displays the search results.

  4. Select the check box for the clause.

  5. Click Create New Version. Fields from the previous version are copied to the new version. You cannot change clause title, number, and intent when creating a new version.

  6. Select one of the following options:

    • Apply

    • Save

    • Submit

    • Cancel

You can delete the new version of a clause if it is in Draft status.

Considerations for Versioning Clauses

Consider the following for versioning clauses:

Comparing Clauses

You can compare any two versions of a clause. The system provides a redline comparison of the changes that are made to the clause text.

You can choose any two versions of a clause, and then click the Compare button that is available in the Version History subtab of Updating Clause page.

Placing Clauses on Hold

You can place clauses on hold to prevent them from being used in contract templates and contracts. You can also release the hold to make the clause available again.

Steps

To place clauses on hold:

  1. Navigate to the Clauses page.

    Navigation: Contract Terms Library > Clauses tab

  2. Search for the clause that you want put on hold. For more information, see the Searching for Clauses section.

  3. Verify the clause status.

  4. Click the Update icon or the clause title link.

  5. Click Put on Hold.

  6. Click Yes to confirm.

  7. To release the hold, open the clause for update. For more information, see the Update section.

  8. Click Release Hold. The system confirms the release.

Deleting Clauses

You can delete only clauses that are in Draft or Rejected status.

Steps

To delete clauses:

  1. Navigate to the Clauses page.

    Navigation: Contract Terms Library > Clauses tab

  2. Search for the clause that you want to delete. For more information, see the Searching for Clauses section.

  3. Verify the clause status.

  4. Click the Update icon or the clause title link.

  5. Click Delete. The system asks you to confirm your request for deletion.

  6. Click Yes.

Importing Clauses

You use the Clause import feature to import clauses into the Contract Terms Library. In addition to clauses, you can import the following related entities:

Clause import can also be used on an ongoing basis to update these entities in the library.

You can import clauses and the related entities using the following methods:

The following tables identify and describe the attributes that are imported for each entity:

Clauses

Attribute Description
Clause Number Number that identifies the clause. Two alternatives for a clause could have the same number.
Description Description of the clause.
Title Clause title or name.
Clause Type Type of clause.
Display Title Title that is displayed for the clause in the application.
Start Date Date from which the clause can be used.
End Date Date until which the clause can be used.
Date Published Date that uniquely identifies the updates. This date determines whether the update is subsequent to the one already in the clause library and whether a new version of the clause will be created.
Clause Text Legal text of the clause. The variables in the clause text should be enclosed within <Var> and <Var/> tags.
Intent Business intent of the clause: (B) for Buy and (S) for Sell.
Language Language in which the clause is authored.
Provision Indicator Indicates whether the clause is a provision.
It only applies to clauses with the Buy intent.
Include By Reference Indicator Indicates whether the clause should be used by reference in a contract.
Reference Source Source from which clause is referenced.
Reference Title Title of the clause in the source.
Operating Unit Operating unit using the clause.
Global Clause Indicator Indicates if the clause is a global clause (all operating units can use them).
Standard Indicator Indicates whether the clause is standard or nonstandard.
Clause Status Status of the clause. Valid values are Draft, Approved, Pending Approval, and Rejected.
Lock Text Indicator Indicates if the clause text can be modified.
Action Action that the import process should perform on the clause.

Clause Relationships

Attribute Description
Clause1 Number Clause number of the first clause.
Source Clause1 Title Clause title of the first clause.
Clause2 Number Clause number of the second clause.
Source Clause2 Title Clause title of the second clause.
Relationship Type Relationship type code:
  • ALTERNATE: Clause1 and Clause2 are alternatives to each other.

  • INCOMPATIBLE: Clause1 and Clause2 are incompatible with each other.

User-Defined Variables

Note: All user-defined variables are imported with the Manual source type. For more information, see Managing Variables.

Clauses can have variables embedded in the clause text. System variables are already defined in the system and are available for use in clause text. However, user-defined variables must be defined in the system before they can be used in clauses. A variable code uniquely identifies the variable and must be specified as part of the definition. The variable code should follow the pattern OKC$<intent>$<code> and should be unique in the system. For example, if the variable is the VAT code of the supplier and is used in buy-side transactions, then the code could look like OKC$B$VATCODE where B stands for buy intent.

Attribute Description
Code Variable code that uniquely identifies the variable.
Name Variable name.
Description Description of the variable.
Data Type Data type of the value of the variable. Valid values are Date, String, and Number.
Valueset Code of the valueset used.
Intent Intent of the variable: B (Buy) and S (Sell).
External User Updatable Indicates whether suppliers can update the variable.
  • Y, if suppliers provide the value.

  • N, if suppliers do not provide the value.

Note: This attribute is not available for Sales Contracts.

Language Language of the variable.
Contract Expert Enabled Indicator Indicates whether the variable can be used in Contract Expert.
  • N: Do not use in Contract Expert.

  • Y: Enabled for use in Contract Expert. Note that the value set for the variable should have a format type that is character or number and validation type independent.

Value Sets

Each user-defined variable that is embedded in the clause sources the value from a value set. Value sets can also be defined during the import process. Value sets can either enforce the data types or the actual values that a variable can have. Value sets that are defined during the import process should have a name in the format OKC$<SOURCE>$<VALUESETNAME> to distinguish them from other value sets in the entire Oracle Applications. For example, a value set for a variable called Business Type used in a FAR clause can have the name OKC$FAR$BUSINESSTYPE.

Each valueset should have the following attributes:

Attribute Description
Name Name of the value set.
Description Description of the value set.
Format Type Format of the values that are provided by the value set:
  • D (Date)

  • N (Number)

  • C (Character)

Minimum Size of Values Minimum number of characters for each value in the value set. Valid values are 1–38.
Maximum Size of Values Maximum number of characters for each value in the value set. Valid values are 1–38.
Uppercase Values Allowed Indicator Indicates whether uppercase values are allowed:
  • Y: Allowed

  • N: Not Allowed

Precision Allowed for Number Types Number of decimal points allowed for number values.
Validation Type Validation type for the value set:
  • N: None

  • I: Independent

Value Set Values

Each value set that has validation type of independent should have a list of valid values.

Attribute Description
Value Actual value
Description Description of the value

Interface Tables Used for Import

The following tables are used during the import process:

Table Name Description
OKC_ART_INTERFACE_ALL This is the main interface table where the users load data from external systems.
OKC_ART_RELS_INTERFACE This is the interface table that stores the relationships between clauses.
OKC_VARIABLES_INTERFACE This interface table is used to import variables that are used in clauses.
OKC_VALUESETS_INTERFACE This interface table is used to import value sets that are used in variables.
OKC_VS_VALUES_INTERFACE This interface table stores the values for the value sets that are used in variables.
OKC_ART_INT_ERRORS This table stores the errors that are reported by the run in the validation or import mode.
OKC_ART_INT_BATPROCS_ALL This is an internal system table that stores the batch run details. This includes the processing status as well as all the parameters that are used for the run.

For detailed information about the preceding tables, see the Oracle eTechnical Reference guide (eTRM).

Clause Import - Open Interface Method

The following tasks constitute the Clause Import With Open Interface procedure:

Prerequisites

For more information, see the Setting up Oracle Contracts chapter of the Oracle Contracts Implementation and Administration Guide.

Steps

  1. Format the data in a form that is suitable for loading into the interface table. For example, if you are using SQL*Loader to load data into the interface tables, you can choose to use a comma separated data file (CSV) and a control file that describes the data format.

  2. Run the Import Clauses concurrent program in validation mode to identify any invalid data or errors. This is recommended but not a mandatory step. You can specify the following parameters for the Import Clauses concurrent program:

    Concurrent Program Parameter Possible Values Mandatory Function
    Batch Name Name of the batch Yes Provide a batch name to easily identify the records that you are importing.
    Run in Validation Mode Yes / No No Set to Yes if you want to run in validation mode to identify potential errors.
    Commit Size 1 to 300 Yes Indicates the maximum number of records that the system processes and commits to the database at one time. For example, if you have 1,000 records to be imported and your commit size is set to 100, and an error occurs on the 150th record, the system has already processed the first 100, and the data will not be reprocessed the next time that you run the program. Consult your database administrator for the appropriate value.
  3. The Import program generates a report that lists the success and error messages. The errors at this stage would primarily be related to data format or missing required data. Review the report and correct the errors outside the system and prepare the data for a reload.

  4. Reload the data into the interface table after correcting the errors.

  5. Run the Import Clauses concurrent program in import mode to create or update data in the library. If the program was run previously in the validation mode with no errors, then the import should succeed. The Import program generates a report that lists the success and error messages. Records with errors remain in the interface tables until they are purged or corrected.

  6. If clauses are imported in Draft status, they must be approved before they are available for authoring contracts. If they are imported in the pending approval status, the system automatically routes the clauses to approvers for review and approval.

  7. Purge the Interface records. See the Purge Interface Records section for details.

Clause Import - XML Data File Method

Prerequisites

Set up the following:

For more information, see the Setting Up Contract Terms Library chapter of Oracle Contracts Implementation and Administration Guide.

Steps

  1. Data preparation: Format the data to be imported in a form that is suitable for XML import. This involves generating an XML file with the clause data that conforms to the XML schema that was published for import (see the table below for how to access the schema definition file in Oracle XML Publisher).

    Schema Definition File Name Application XML Schema XML Preview File
    Clause Import XML Data Definition Contracts Core OKCXMLIMPDFN.xsd OKCXMLIMPDFN.xml
  2. Staging the XML import file: Copy the XML file to the location specified by the OKC: Clause Import XML File Location profile option.

  3. Import in the Validate mode: Run the Import Clauses from XML File concurrent program in the Validate mode to identify any invalid data or errors. This is recommended but is not a mandatory step. The program parses the XML file and populates the interface tables. You can specify the following parameters for the concurrent program:

    Parameter Possible Values Default Mandatory Function
    XML File Name - No Yes Name of the XML import file. The file must be present in the location that is specified by the profile option OKC: Clause Import XML File Location.
    Default Operating Unit Any operating unit for which contract terms are enabled No No Identifies the operating unit for which the Import process needs to run. Leave it blank if the operating unit has already been provided for each record in the XML file. This value is used as the default for those records for which the operating unit is not provided.
    Create as Global Clause (Default) Yes/No No No If this parameter is set to Yes, it will import all clauses as global clauses. Note that the operating unit in which the clauses are imported must be set up as the global operating unit.
    Default Clause Status Approved, Draft, Pending Approval No No This identifies the status in which to import the clauses. Leave it blank if the records already have a status. This value is used as the default for those records for which the status is not provided.
    Validate Only Yes/No Yes No Run the Import process in validate mode to identify invalid data or errors.
  4. Review the error messages: The import program generates a report that lists the success and error messages. The errors at this stage would primarily be related to data format or missing required data. Review the report and correct the errors outside the system and prepare the data for a reload.

  5. Correct the errors: Review the report in the log file and correct errors in the XML data file.

  6. Import data into the library: Run the Import Clauses from XML File concurrent program in import mode to create or update data in the library. If the program was run previously in validation mode with no errors, then the import should go through successfully. The Import program generates a report that lists the success and error messages.

  7. Approvals: If clauses are imported in the Draft status, they must be approved before they are available for authoring contracts. If they are imported in the Pending Approval status, the system automatically routes the clauses to approvers for review and approval.

  8. Purge the interface records. For more information see the Purge Interface Records section.

Purge Interface Records

To optimize performance, you should periodically run the Purge Clause Import Interface Table concurrent program. This program purges records in the interface tables for clauses and the other related entities.

The following table describes the parameters for the Purge program:

Concurrent Program Parameter Mandatory Purpose
Start Date, End Date No Use the Start and End Dates to identify the range of dates for interface records that must be purged.
Process Status No Provide a specific status if you want to purge interface records with that status. The possible values are Error, Success, and Warning.
Batch Name No Provide a specific batch name if you want to purge records belonging only to that batch.

Note: If you do not specify any parameters, the system displays the following warning message: "No parameters found for this run. This request will delete all the records for your organization in the interface tables."

Managing Contract Templates

Oracle Contracts enables you to define a standard set of templates to easily bring in terms and conditions for contracts that are authored by your company. You can create templates that include both clauses and deliverables. These templates can then be used to bring in clauses and deliverables onto a contract.

Note that the Deliverables functionality is currently supported only on contract templates with Buy intent.

This section covers the following topics:

Creating Contract Templates

To create a contract template, you can either:

Creating a New Contract Template

Use the following steps to create a new contract template.

Steps

To create a new contract template:

  1. Navigate to the Create Contract Template page.

    Navigation: Library > Contracts Template tab > Create Template button

  2. Select an operating unit from the list of values. The list of values is based on the security profile that was defined for the responsibility that you are using. For more information, see Setting Up Operating Units and Setting Up Profile Options.

    Note: After you save a template, you cannot change its operating unit, even if the template is in Draft status. Make your selection carefully when creating a template from the list of available operating units.

  3. Enter a unique name for the template. Note that the template name is unique within operating units.

  4. Select the Intent for the template. The intent for Sales Contracts should be set to Sell.

  5. Either accept or change the default start date, which is the system date.

  6. Optionally, enter a description for the template.

  7. Either accept or manually change the status of a template from Approved to On Hold. When you create a new template, the system sets the template status to Draft. Except for the On Hold status, the system controls all statuses on a template.

  8. Link all contract templates that have the same context and purpose but are in different languages. To do this, use the Language and Translated from Template fields to specify the language and primary template for the contract template:

    • The list of values for the Languages field displays all active languages that have been installed in your instance.

    • The list of values for the Translated from Template field includes all contract templates that are in the same operating unit as the current template, with the same intent but in a different language.

    • If you select a Translated From template, you also must select a language for the template.

    • You cannot update the Translated From Template field on a template that is referenced by other translated templates.

    • You can update the Language and Translated from Template fields after approval without requiring a template revision.

    After you save the template, the system displays the Translated Templates subtab. If applicable, the subtab displays the following information: Name, Description, Language, Status, and Translated From.

  9. Select a layout template from the list of values. The layout template is used by the system to prepare the template for preview. For more information, see the Setting Up Layout Templates section.

  10. Optionally, enter any instructions for using the template.

  11. Optionally, select the Global check box to make the template available for duplication in all operating units. This is applicable only for global operating units. For more information, see the Global Templates section.

  12. Select the Contract Expert Enabled check box to make the Contract Expert feature available on a business document to which the template is applied. By selecting the check box:

    • Contract Expert rules can be assigned to the template.

    • All existing Contract Expert rules with the Apply to All Templates option selected are assigned to the template automatically. For more information about creating and assigning rules, see the Creating Rules section.

    • The system displays the Rules subtab (after the user has saved the template). From the Rules subtab, you can view the Contract Expert rules that are applicable to the contract template. Also, you can view the sequence of questions that are used in the rules.

  13. Select the Expert Clauses Mandatory check box if you want to make the clauses, brought in by Contract Expert, mandatory on the business documents. You can select the Expert Clauses Mandatory check box only if you first select the Contract Expert Enabled check box.

    Note: Selecting this box makes all of the Contract Expert clauses mandatory on the contract. You cannot apply this option to only certain clauses.

  14. Select a Default Section if the template is enabled for Contract Expert.

    Contract Expert places the clauses that it selects into the Default section of the template if those clauses do not have a default section assigned to them in the library.

    Note: If you want to make changes to the Contract Expert fields after a contract template has been approved, see the special considerations that apply when you change Contract Expert fields on contract template revision.

  15. In the Document Types region, you can assign the template to one or more business document types. This enables users to select this template while authoring a contract of this document type.

  16. To add a document type, click the Add Another Row button and enter the following information:

    • In the Document Type field, select the relevant contract type from the list of values (examples are Standard Purchase Order and RFQ).

    • Optionally, select the Default Template check box to set the template as a default for all business documents that are authored using that document type. For each document type, you can set only one contract template as the default template.

      Note: This is only a first level default setup. Other applications, such as Oracle Quoting and Oracle Order Management, require additional setup to define default contract templates. For instance, Oracle Order Management uses the Transaction Type definition to set up these defaults.

  17. Click Apply and Add Details.

  18. Add sections and clauses to the template. For more information, see the Adding Sections and Clauses section.

  19. If Contract Expert is enabled on the contract template, you can click the Rules tab to view the list of rules that are assigned to the template. From the Rules table, you can click a rule link to view the rule details.

    You can also view the question sequence in the Questions table.

    You can change the question sequence for the contract template on the Contract Expert tab. For more information, see the Managing Question Sequence section.

  20. From the Actions menu, choose:

    • Submit: Submit the template for approval. A contract template that is created with no clauses cannot be submitted for approval.

    • Validate: Run the QA check process to validate that the template is correct. If the validation returns error messages, you cannot submit the template for approval until the errors are corrected.

    • Preview: Preview the contract template to ensure that the format and layout of the template are according to the contract printing standards for the operating unit.

    • Delete: Delete the contract template. You can delete only templates that are in Draft or Rejected status.

Considerations for Creating and Using Contract Templates

Consider the following when creating and using contract templates:

Duplicating from an Existing Template

You can create new templates by copying the existing templates. Templates can be copied within the same operating unit, regardless of the template status. The system copies all the information, including clauses, deliverables, and Contract Expert rules, from the original template to the new template, except for rules with the Disabled status.

You can also duplicate a global template in the local operating unit.

When a global template is copied to a local operating unit, the system does not copy the Contract Expert rules from the global operating unit. Any rules that are marked "Apply to All Templates" in the local operating unit are copied to the local template automatically.

For more information, see the Global Templates section.

Steps

To duplicate from an existing template:

  1. Navigate to the Contract Templates page.

    Navigation: Library > Contract Templates tab

  2. Search for the source template. For more information, see the Searching for Templates section.

  3. In the Results section, select the source template.

  4. Click the Duplicate button to open the Duplicate Contract Template page.

  5. In the Name field, enter a new name for the template. The system copies the entire content of the source template along with the section, subsections, layout, and formatting details to the new template. The status of the new template is Draft.

  6. Make other necessary changes to the new template. For more information, see the Creating a New Contract Template section.

  7. Save the template.

  8. From the Actions menu, you can select:

    • Submit: Submit the template for approval.

    • Validate: Run the QA check process to confirm that the template is correct.

    • Preview: Preview the contract template.

    • Delete: Delete the contract template.

Adding Sections and Clauses

Use the following steps to add sections and clauses to a template.

Steps

To add sections and clauses:

  1. Navigate to the Create Contract Template page.

    Navigation: Library > Contracts Template tab > Create Template button

  2. Enter the general information for the template.

  3. Click Apply and Add Details.

  4. Navigate to the Clauses subtab. On the Clauses subtab, you can define the structure and layout of the template consisting of sections, subsections and clauses. This is the component that contains all the contract terms. From the Clauses subtab, you have access to the following options:

    • Add Sections: You can build a hierarchy of sections and subsections and insert clauses into this hierarchy. You can create a new section or select from a predefined library of sections. If you pick a section from the library, you cannot override the section name. To add clauses, you must define at least one section on the template.

    • Add Clauses: To add a clause, select a location for the clause in the hierarchy, and then click the Add Clause button. You can insert clauses only in the context of a section or subsection. You can perform a blind search or begin your search with % to add clauses to the template. You can also search for clauses by browsing through folders, or based on:

      • Keyword

      • Number

      • Clause Type

      • Title

      • Default Section

      • Provisions Only: Select this check box if you want to search only for Provision type clauses (this field is available for templates with the Buy intent only).

  5. To make a clause mandatory in the template, select the Mandatory check box. This prevents the clause from being deleted from the business document, except through special privileges.

  6. If a clause has alternate relationships defined, the Select Alternate icon is enabled. Click Select Alternate to view all the alternates for the clause on the template. If you select an alternate clause, it replaces the original clause on the template.

  7. After creating the necessary sections and subsections and inserting clauses, use the Move button to change the order of clauses and sections in the template. Select the sections or clauses that you want to move, and click the Move button. Select the location in the hierarchy where you want to move the selections. Then, for sections, use the Location field to indicate whether you want to move before, after, or within the selected location.

  8. You can apply a numbering scheme to the sections and clauses structure. Use the Renumber button to renumber the terms.

Considerations for Adding Sections and Clauses to Templates

Consider the following for adding sections and clauses to templates:

Creating Contract Template Deliverables

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 contracts, besides products and services that are bought or sold, are classified as deliverables, under the Terms and Conditions of the contract. 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 contract.

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

Note: You can define deliverables for only templates with Buy intent.

Steps

To create contract template deliverables:

  1. Navigate to the Create Contract Template page.

    Navigation: Library > Contracts Template tab > Create Template button

  2. In the Deliverable subtab, click the Create Deliverable button.

  3. Enter the deliverable name. This is the name of the task that is being requested.

  4. Select the deliverable type. You can define the following types of deliverables:

    • Contractual Deliverable: A deliverable on a contractual document (for example, Purchase Orders, Blanket Purchase Agreement).

    • Negotiation Deliverable: A deliverable on a negotiation document (for example, Request for Quote (RFQ), Request for Information, Response).

    • Internal Purchasing Deliverable: Internal Purchasing deliverables are used to track internal schedules and commitments that are relevant to a contract. They are not part of the contractual terms of a contract, and hence do not directly represent a formal commitment between the parties.

  5. Select the responsible party. The responsible party is specified as the party that fulfills the deliverable. You can select Buyer or Supplier Organization from the list.

  6. Optionally, enter the description of the task and how to perform it.

  7. Optionally, select the buyer contact. The buyer contact is the person who is responsible for performing the deliverable if you select the Buyer Organization in the Responsible Party field. In case the supplier company is responsible for performing the deliverable, the buyer contact is responsible to accept the fulfilment of the deliverable.

  8. Optionally, select the requester. This is the name of the person who has requested the deliverable. The requester usually verifies whether the deliverable was completed satisfactorily.

  9. Optionally, enter any comments. These comments are visible only to the internal users of the buying operating unit.

  10. Use the Due Date region to define one-time or recurring deliverables.

    A one-time deliverable can have a fixed due date or due date that is relative to a life cycle event on the document.

    With a relative due date, you can identify a date that is based on a period of time before or after a certain business document event, for example, five days after the contract is signed or two weeks after the RFQ is published. In this case, you need to specify both the period of time and the event. For deliverables that have a relative due date, for example 30 days after award, the actual due date will be calculated when the contract on which the template is applied is approved or is signed.

    You are not required to provide a fixed due date for a deliverable on a contract template. However, you are required to provide complete due date information if the deliverable is a one-time deliverable with a relative due date or a recurring deliverable.

    All events that are related to business documents with the same intent as the template are available for users to choose while defining a relative due date. Selecting a particular business document event for due date on a deliverable would also make the deliverable specific to that given business document for execution (for instance, five days after the blanket purchase agreement is closed). This deliverable is copied over and executed only on a Blanket Purchase Agreement. If the contract template containing this deliverable is applied on a Purchase Order document, the deliverable is dropped. If the same contract template is applied on a negotiation document, for example RFQ, which concludes in a Blanket Purchase Agreement award, then the deliverables that are related to the Blanket Purchase Agreement are retained on the negotiation document and carried forward to the Blanket Purchase Agreement.

    Deliverables can also be of a recurring nature. For example, a progress report is due every first Monday of the month. You can define a Recurring deliverable by selecting the repeating due date type. The repeating deliverable instances are created upon approval or signing of the contract that it is on. You can track and update the status of each instance like a one-time deliverable. To create a recurring deliverable, you must enter the following:

    • Start Date: This is specified through a fixed date or a date that is relative to a certain event.

    • Repeating Type: For example, Weekly, or Monthly.

    • Frequency: In combination with the Repeating Type, this gives the frequency of the repeating deliverable, such as every six weeks, or every three months.

    • Day of the week to repeat on, in case of the Weekly frequency type.

    • Day of the month to repeat on, in case of the Monthly frequency type.

      For example, a report needs to be sent on the 5th day of the month every three months (every Quarter) after the purchase agreement is signed. In this case:

      The Event = Signing of the Purchase Agreement

      Frequency = Monthly

      Interval = 3

      Day of the month to repeat on = 5

  11. Use the Notifications region to inform the contacts about the progress of deliverables. Notifications are sent during the life cycle of the deliverable, after the contract has been signed. Note that you can only define recipient for escalation notification here. All others are sent to contacts on the deliverables. The notifications have a subject, a message body, and buttons to take certain actions, a notes area, and attached documents. Notifications can be sent for a deliverable in the following scenarios:

    • Prior to Due Date: You can specify how many days, weeks, or months to send the notification before the due date. Recipient of this notification is the buyer contact and supplier contact.

    • Status Change: Send notifications for any status change of the deliverable. Statuses could be any of the following: Completed, Submitted, Rejected, Canceled, or Failed to Perform.

    • Overdue: Send notifications when the due date of the deliverable is passed.

    • Escalate after Due Date: You can specify how many days after the due date to send an escalation notification. You can also specify the recipient of the notification.

  12. In the Attachments region, attach additional documents as part of the deliverable creation that you want your trading partner to see. For example, you might want the supplier to use a standard Progress Report Template for this contract. You must provide a description for the attachment to identify the nature, context, and purpose of the attachment on the deliverable. In addition, you need to specify a name for the attachment.

    Click Add Attachments, and define your attachment as one of the following types:

    • File: you can attach a file from your local desktop.

    • URL: you can specify a URL where the document is available.

    • Text: You can enter information in the Text field.

  13. Click Apply.

Validating Templates

Prior to submitting a contract template for approvals, you can validate the template to identify potential errors and warnings. In addition, the system automatically runs the validation process when you submit a template for approval. If any error conditions are found, the template is not submitted for approval. You must correct the error conditions and resubmit the template for approval.

The following table displays the type of validations that the system performs when you run the Validation process.

Type of Validations
Validation Type Condition Description
Inactive Clauses Error This validation checks for clauses in On Hold and Expired status. Templates with clauses in these statuses cannot be submitted for approval. Note that this validation is enforced only for those clauses that do not have any approved, previous versions.
Alternate Clauses Warning This validation checks for the presence of two alternative clauses on the same template.
Incompatible Clauses Warning This validation checks for the presence of incompatible clauses on the template.
Layout Template not Defined Warning This validation checks whether the contract template has a layout template assigned to it.
Invalid Variable for Document Type Warning This validation checks whether the system variables that are embedded within clauses and used in the template are supported for the document types in which the contract template is used.
Duplicate Clauses Warning This validation checks whether the contract template contains duplicate clauses.
Inactive Rules Warning This template validation checks whether the contract template has one or more rules that are not active.
Expired Clause Error This rule validation checks for an Expired clause used in the rule.
Invalid Clause Error This rule validation checks for an On-Hold clause used in the rule.
Draft Clause Error This rule validation checks for a Draft clause used in the rule.
Invalid Question Valueset Query Error This rule validation checks for an invalid value set query used in a question in the rule.
Invalid Variable Valueset Query Error This validation checks for an invalid value set query used in a variable in the rule.
Missing Value Set value in Question Error This rule validation checks for a missing value set value used in a question in the rule.
Missing Value Set value in Variable Error This rule validation checks for a missing value set value used in a variable in the rule.
Invalid Value Set in Question Error This rule validation checks for a deleted value set used in a question in the rule.
Invalid Value Set in Variable Error This rule validation checks for a deleted value set used in a variable in the rule.
Invalid Question Error This rule validation checks for a disabled question in the rule.
Missing Template Association Error This rule validation checks for missing template associations, where the Apply to All Templates option is not selected.

You can run the QA process at any stage during the template creation. The system also runs the QA process when a template is submitted for approval. For more information, see the Approving Templates section.

Steps

To validate templates:

  1. Navigate to the Contract Templates page.

    Navigation: Library > Contract Templates tab

  2. Open the template for update. For more information, see the Updating Templates section.

  3. Select the Validate option from the list.

  4. Click Go. The system performs the validation and displays the results along with the suggested corrections.

  5. Click the Printable Page button if you want to print the list of validations.

  6. If applicable, correct the error conditions and resubmit the template for validation.

Previewing Templates

Oracle Contracts uses the Layout template, which is assigned to the contract template, to prepare the template for preview. For more information, see the Setting Up Layout Templates section.

Steps

To preview templates:

  1. Navigate to the Contract Templates page.

    Navigation: Library > Contract Templates tab

  2. Search for the template that you want to preview. For more information, see the Searching for Templates section.

  3. Click Go. The system displays the search results.

  4. Select the Update icon for the template.

  5. Select the Preview option from the Actions list of values.

  6. Click Go. The system displays the template in the Portable Document Format (PDF).

Approving Templates

You can use a standard workflow process to submit the templates for approval. You must request approval in the following cases:

Approving Draft Clauses with Contract Templates

Special considerations exist for contract templates that include unapproved clauses, that is, clauses for which the status is either Draft or Rejected.

One factor that determines which clauses are to be submitted for approval along with the contract template is the contract template effective date.

The contract template effective date is the contract template start date or the current date, whichever is later.

When the contract template is submitted for approval, the contract template is first validated. If no errors occur during validation, the application presents you with a list of the draft clauses that are used in the contract template that is effective on the contract template effective date.

Draft clauses can belong to one of the following categories:

  1. No approved previous version exists, or the previous version of the clause is not valid.

    The previous version may be invalid for either or both of the following reasons:

    • The version expires before the contract template effective date.

    • The clause is on hold.

      In this case, you must submit the clause with the contract template for approval.

  2. A previously approved version of the clause is valid for the contract template effective date.

    In this case, approval of the clause is not necessary for the contract template to be valid, and you can choose whether to submit the draft clause for approval.

The clauses in category 1 and the clauses that you select in category 2 become the final list of clauses that are submitted for approval with the contract template.

Note: If a template contained a Draft clause and during approval, you deselect this clause and submit the template with the previous approved version of the clause, in a new revision of the template, the latest Draft clause is displayed and will be submitted again when the revision is submitted for approval.

Approving Contract Templates

The approval notification includes a list of any unapproved clauses in the contract template.

Note: If a draft clause that has been added to a contract template is submitted for approval independent of the template, the contract template validation report displays an error indicating that a template with a clause in the Pending Approval status cannot be submitted for approval.

Approvers can approve or reject the template. When a template is rejected, the system sends a workflow notification to the author of the contract template. The reason for rejection is also included in the workflow notification. The submitter can update the template based on the comments and resubmit the template for approval.

Approving or rejecting a contract template also approves or rejects all the draft clauses that are submitted with the contract template.

The approver can reassign the contract template for approval to another user. While reassigning, the approver can delegate the notification while retaining ownership on the notification or transfer the notification to the assignee

Steps

To approve contract templates:

  1. Navigate to the Contract Templates page.

    Navigation: Library > Contract Templates tab

  2. Open the contract template and select the Submit option from the Actions list of values. Alternatively, from the search results, query the contract template and click the Submit button.

    If errors occur, the Validation Results report appears. You must correct the errors before you resubmit the contract template for approval.

    If no errors occur and no draft clauses are in the contract template, the contract template is submitted for approval.

    Approving Draft Clauses

    If no errors occur, but draft clauses exist in the contract template, the Submit for Approval page appears for the contract template. This displays a list of the clauses to be submitted with the contract template for approval.

    The types of clauses that may exist in the list are:

    • Clauses that must be submitted for approval. You cannot deselect these clauses.

    • Clauses that may be submitted for approval. You can select or deselect these clauses.

  3. In the Submit for Approval page, optionally click View Warnings.

    The Validation Results report lists the warnings.

    If you want to submit the contract template for approval, you must click the link to return to the Submit for Approval page.

  4. In the Submit for Approval page, click Submit.

    If no warnings appear or no errors occur, the contract template is submitted for approval.

  5. If warnings appear or errors occur, the Validation Results report appears, listing the warnings. Click Finish to submit the contract template for approval, or Cancel to cancel the Submit for Approval process.

Searching for Templates

To find a template in the Contract Terms Library, choose one of the following options:

Searching for Templates

Use these steps to search for contract templates.

Steps

To search for templates:

  1. Navigate to the Contract Templates page.

    Navigation: Contract Terms Library > Contract Templates tab

  2. To access the Advanced search options, click the Show More Search Options link.

  3. Search for the template using the following criteria:

    • Operating Unit.

    • Keyword: Searches on the Template Name, Description, and Instructions fields.

    • Status: Search on Approved, Draft, Rejected, Revision, On Hold, and Pending Approval templates.

    • Template Intent: Search on Buy, Sell, or All.

    • Contains Clause: Search for a specific clause that is used in a template.

      Note: The version of the clause is not considered in this search. If a clause has multiple versions, the system retrieves the templates that use any of those versions.

    • Used in Document Type: Search on the document type usage for the template.

    • Language.

    • Name.

    • Layout Template.

    • Translated From Template.

    • Template Effectivity: Search for templates based on start and end dates.

    • Owning Operating Unit (only available for local operating units): Search for template used in local operating units or the global operating unit. Note that the search is set by default to the local operating unit. Also, if the owning operating unit is set to Global, the only applicable status value is Approved. You cannot search for global templates in other statuses in a local operating unit.

    • Default Templates Only: Search for any templates that are used as the default for document types.

    • Global Only (only available for the global operating unit): Search for global templates in the global operating unit.

    • Contract Expert Enabled: Search for any templates that use the Contract Expert feature.

    For more information, see the Create a New Contract Template section.

  4. Click Go. The system displays the templates that match your criteria.

Using the Keyword Search Feature

You can search for templates in the Contract Terms Library using the Keyword Search feature. The system searches for templates that contain the text that you enter in any of the following fields:

To perform the keyword search, you must run the following concurrent programs periodically:

If the concurrent programs have not been run, the search will not provide accurate results. The frequency for running these programs must be decided on a case-by-case basis. You can schedule the concurrent programs to be run together automatically at predefined intervals.

Viewing Template Clauses

When you assign a clause to a template, the system does not associate a specific version of the clause.

Note: The latest version of the clause is always appears if that is the only available version of the clause in the library.

For display purposes, the system uses the latest version of the clause subject with the following exceptions:

Managing Changes to Contract Templates

This section covers the following topics:

Updating Templates

You can update general information about an approved template, including:

For more information, see the Create a New Contract Template section.

You must create a revision to update any of the sections, clauses, or deliverables. You can update templates in any of the following statuses:

You can also perform the following updates to contract templates:

Steps

To update templates:

  1. Navigate to the Contract Templates page.

    Navigation: Library > Contract Templates tab

  2. Enter the search criteria for the template. For more information, see the Search for the Templates section.

  3. Click Go. The system displays the search results.

  4. Select the Update icon for the template that you want to update. You can perform the following actions while updating a template:

    • Add, update, or delete sections and clauses.

    • Add, update, or delete deliverables (available only for templates in Draft, Rejected, and Revision status).

    • Submit for approval (available only for templates in Draft, Rejected, and Revision status).

    • Place on hold (not available for templates in Draft, Rejected, and Revision status).

    • Delete (available only for templates in Draft, Rejected, and Revision status).

    • Validate (all statuses of the template).

    • Create revision (available only for templates in Approved status).

    • Preview.

Reordering Deliverables

You can change the sequence in which the deliverables are displayed and printed on business documents.

Steps

To reorder deliverables:

  1. Navigate to the Contract Templates page.

    Navigation: Library > Contract Templates tab

  2. Enter the search criteria for the template. For more information, see the Search for the Templates section.

  3. Open the template for update. For more information, see the Updating Templates section.

  4. Click the Deliverables tab.

  5. Click Reorder. The Reorder Deliverables page opens.

  6. For each deliverable that you want to resequence, click the deliverable, and then click the Up or Down arrow. Deliverables are printed in the order that you specify.

  7. Click Apply.

Creating Template Revisions

You can create revisions to approved contract templates. However, you cannot change the following fields:

Revisions must be approved before they can be made available for use in authoring business documents. After a template revision has been approved, it completely replaces the original approved template. Template history of previous approved versions is not currently supported.

Changing Contract Expert Fields on Contract Template Revisions

Steps

To change Contract Expert fields on contract template revisions:

  1. Navigate to the Contract Templates page.

    Navigation: Library > Contract Templates tab

  2. Enter the search criteria for the template. For more information, see the Search for the Templates section.

  3. Open the template for update. The template must be in Approved status.

  4. Select the Create Revision option from the Actions list of values.

  5. Click Go. The status of the template changes to Revision.

  6. Make the necessary changes.

  7. Submit the template for approval.

Placing Templates on Hold

You can place templates on hold to prevent usage on contracts. You can also release the hold and make templates available again. You can place only those templates that are in Approved status on hold.

Steps

To place templates on hold:

  1. Navigate to the Contract Templates page.

    Navigation: Library > Contract Templates tab

  2. Search for the template that you want to place on hold. For more information, see the Search for the Templates section.

  3. Click Go. The system displays the search results.

  4. Select the Update icon for the template.

  5. Select the Place on Hold option from the Actions list of values.

  6. Click Go.

Deleting Templates

You can delete templates that are in Draft or Rejected status.

Steps

To delete templates:

  1. Navigate to the Contract Templates page.

    Navigation: Library > Contract Templates tab

  2. Search for the template that you want to delete. For more information, see the Search for the Templates section.

  3. Click Go. The system displays the search results.

  4. Select the Update icon for the template.

  5. Select the Delete option from the Actions list of values.

  6. Click Go.

  7. Click Yes to confirm.

Defining Global Templates

To define a global template, you must identify your global operating unit, usually the corporate headquarters. The designated global operating unit is responsible for the creation of templates that local operating units can use. On approval, the global templates are available for local operating units to duplicate.

The global templates feature is different from the global clauses. Unlike a global clause, the system does not track adoption of the global templates. The local operating units are responsible for determining whether they want to duplicate a global template. The system allows a local operating unit to duplicate the global template subject to the following conditions:

Considerations for Using Global Templates

Note the following considerations for using global templates:

Viewing Contract Expert Rules

You can view Contract Expert rules from templates enabled for Contract Expert.

Steps

To view Contract Expert rules:

  1. Navigate to the Contract Templates page.

    Navigation: Library > Contract Templates tab

  2. Enter the search criteria for the template. For more information, see the Search for the Templates section.

  3. Click Go. The system displays the search results.

  4. Click the Name link for the template that you want. The system displays the Contract Template page.

  5. Open the Rules tab to view the rules. For more information, see the Contract Expert Chapter.

Managing Variables

Oracle Contracts supports the use of business variables (tokens) in both clauses and Contract Expert rules. During authoring, values from the business document replace the variables. Oracle Contracts supports the following types of variables:

Variable Identification

The application can identify a variable only if the variable is enclosed within the following special characters:

[@VARIABLE_NAME@]

For instance, the Payment Terms system variable must be captured with the following tags:

[@Payment Terms@]

The Managing Variables section covers the following topics:

Creating Variables

Oracle Contracts provides seeded and user-defined variables:

Prerequisite

Steps

To create variables:

  1. Navigate to the Create Variable page.

    Navigation Library > Variables tab > Create Variable button

  2. In the Variable Name field, enter the name that you want to appear in clauses.

  3. Optionally, enter a description for the variable.

  4. In the Value Set field, select a value set from the list of values.

    Note: You must assign the appropriate value set when creating a variable. The system does not verify that the appropriate value set has been attached. For more information, see the Setting Up Value Sets section .

  5. In the Intent field, select the intent for the variable. You can select the Buy or Sell option from the list of values. Only clauses with the same intent can use the variable for embedding.

  6. Optionally, select the External Party Updateable check box to allow updates to the variable by external users. Note that currently the system supports this feature only for authoring contracts with the Buy intent. Suppliers can be required to provide values for user-defined variables during the negotiation process. When you select the External Party Updateable check box, the variables are displayed in the iSupplier portal for supplier inputs. Suppliers using the iSupplier Portal to respond to purchase orders or sales agreements can update variable values in their responses.

    Note: For variables that use source of PL/SQL Procedure, the External Party Updateable option cannot be selected.

  7. Select the Manual or PL/SQL Procedure option as the variable Source from the list of values.

  8. If you select the PL/SQL Procedure option as the source, the system displays the following mandatory fields:

    • Procedure Name: Enter a PL/SQL stored procedure name that is used for deriving the value for the variable. The name must be entered in the <schema name>.<package name>.<procedure name> format (for example, APPS.CUSTOM_UDV_PKG.Get_PO_Amount). If the format is not valid, the system displays an error message when you try to save the variable and asks you to correct the error. When the variable is saved, the system checks whether the procedure exists and is valid. If the procedure is not valid, the system displays a warning message and saves the variable.

    • Variable Code: Enter a unique variable code. The code cannot be a number.

      Note: Variable Source, Procedure Name, and Variable Code cannot be updated if the variable has already been used in a Contract Expert rule or clause.

  9. Click Apply to save the variable.

Searching for Variables

You can search for both user-defined and system variables.

For performance reasons:

Steps

To search for variables:

  1. Navigate to the Variables page.

    Navigation: Library > Variables tab

  2. In the Variables Search region, you can perform searches on variables by:

    • Name

    • Description

    • Type

    • Intent

      You must enter your search criteria in one of the following fields: Name, Description, or Type.

  3. Click Go. The system displays the list of variables that match your search criteria.

  4. To view a variable, click the Variable Name link.

Displaying Clauses Using a Variable

You can obtain the list of clauses that use a specific variable.

Steps

To display clauses using a variable:

  1. Navigate to the Variables page.

    Navigation: Library > Variables tab

  2. Search for the variable that you want. For more information, see the Searching for Variables section.

  3. In the Results section, select the check box for the variable.

  4. Click Display Clauses to view clauses that use the variable. The system displays all versions of a clause that use the specific variable.

    Note: Clauses appear only for the operating units that are defined using the MO Security Profile for the current responsibility.

Managing Changes to Variables

You can change or delete user-defined variables only.

This section covers the following topics:

Updating User-Defined Variables

You can update user-defined variables. However if the variable is used in Contract Expert rules or clauses, you cannot update the following fields:

Steps

To update user-defined variables:

  1. Navigate to the Variables page.

    Navigation: Library > Variables tab

  2. Search for the variable that you want to update. For more information, see the Searching for Variables section.

  3. Click the Update button to open the variable for update. You cannot update the variable name, intent, and source. Also, after the variable has been used in a clause, you can update only the variable description and select the Disable check box. After the variable has been used in a clause or a rule, you must create a new variable if you want to change a value set that is assigned to a user-defined variable.

  4. Make the necessary changes. For more information, see the Creating Variables section.

  5. Select the Disable check box, if you want to prevent further use.

  6. Click Apply to save the variable.

Considerations for Defining Variables

Consider the following for defining variables:

Deleting Variables

You can delete only user-defined variables that are not used in any clause or rule.

Steps

To delete variables:

  1. Navigate to the Variables page.

    Navigation: Library > Variables tab

  2. Search for the variable that you want to delete. For more information, see the Searching for Variables section.

  3. Click Go to view the search results.

  4. Select the check box for the variable that you want to delete.

  5. Click the Delete icon. The system displays the Warning page.

  6. Click Yes to confirm.

Managing Sections

Sections are headings under which you organize contract clauses. The headings provide structure and organization to a printed contract document. You can define sections that can be used in authoring templates and contracts. Previously defined sections are not required for creating contract templates because you can also define template-specific sections when creating a template.

This section covers the following topics:

Creating Sections

Steps

To create sections:

  1. Navigate to the Create Section page.

    Navigation: Library > Sections tab > Create Section button

  2. Enter the following parameters:

    • Code

    • Name

    • Description (optional)

    • Effective From

    • Effective To (optional)

  3. Click Apply to save the new section and close the Create Section page.

    Note: If you assign an end date to a section, it will not impact existing contract templates or business documents. However, the inactive section cannot be used to author new contract templates or business documents.

Searching for Sections

Use these steps to search for sections.

Steps

To search for sections:

  1. Navigate to the Sections page.

    Navigation: Library > Sections tab

  2. Enter your search criteria for section:

    • Name

    • Code

  3. Click Go. The system displays the sections that match your search criteria.

Updating Sections

You cannot update a section name after it has been saved. Assigning an end date to a section impacts only clauses, contract templates, and contracts that are authored in the future. The system continues to use the end-dated sections if sections have already been used in a contract template or contract. However, in the case of contract templates in Draft status, the system provides an error message when users view the section details from the template.

Steps

To update sections:

  1. Navigate to the Sections page.

    Navigation: Library > Sections tab

  2. Search for the section that you want to update. For more information, see Searching for Sections.

  3. Click the Update icon for the section that you want to change.

  4. Make the necessary changes. You can change the following fields:

    • Description

    • Effective to Date

  5. Click Apply to save your changes and close the page.

    Note: You must manage Sections using the Create and Update Sections pages in Oracle Contracts. Sections should not be created or modified using the Oracle Application Foundation Lookups module.

Managing Folders

You can organize clauses under different folders for easier retrieval. After creating folders, you can use the Update Folders feature to organize clauses in different folders. For more information, see the following sections:

You can assign a clause to more than one folder.

This section covers the following topics:

Creating Folders

Folders are unique within an operating unit. All operating units that use the Contract Terms Library can create their own folders. Folders that are created in a global operating unit are not copied over or created in the local operating unit.

Steps

To create folders:

  1. Navigate to the Create Folder page.

    Navigation: Contract Terms Library > Folders > Create Folder button

  2. Select an operating unit from the list of values. The list of values is based on the security profile that was defined for the responsibility that you are using. For more information, see Setting Up Operating Units and Setting Up Profile Options.

  3. Enter a name for the folder.

  4. Optionally, enter a description for the folder.

  5. Click Save or Apply.

Searching for Folders

Use these steps to search for folders.

Steps

To search for folders:

  1. Navigate to the Folders page.

    Navigation: Contract Terms Library > Folders tab

  2. Enter the search criteria for:

    • Operating Unit

    • Folder Name

    • Description

  3. Click Go. The system displays the folders that match your search criteria.

Managing Changes to Folders

This section covers the following topics:

Updating Folders

You can update folders. During the update, you can:

Steps

To update folders:

  1. Navigate to the Folder page.

    Navigation: Library > Folders tab

  2. Search for the folder that you want to update. For more information, see the Searching for Folders section.

  3. In the Result section, click the Update icon for the folder that you want to change. The system opens the folder for update. You can:

    • Change the name and description

    • Add clauses

    • Remove clauses

Adding Clauses to Folders

You can assign one clause to more than one folder.

Steps

To add clauses to folders:

  1. Navigate to the Folder page.

    Navigation: Library > Folders tab

  2. Search for the folder that you want to update. For more information, see the Searching for Folders section.

  3. In the Result section, click the Update icon for the folder to which you want to add clauses.

  4. Click Add Clauses to open the Search Clause page.

  5. Enter the search criteria for the clause. Note that you can add clauses of any status to the folder. The system does not maintain references to a specific version of a clause when it is added to a folder. When you browse a folder to select clauses on a contract template or contract, the appropriate version will be selected on the template or the contract.

  6. Click Go to view the search results.

  7. Select the clauses that you want to add.

  8. Click Apply to add the clauses to the folder.

  9. Click Save or Apply to save your changes.

Removing Clauses from Folders

Use these steps to remove a clause from a folder.

Steps

To remove clauses from folders:

  1. Navigate to the Folder page.

    Navigation: Library > Folders tab

  2. Search for the folder that you want to update. For more information, see the Searching for Folders section.

  3. In the Result section, click the Update icon for the folder that you want.

  4. In the Clauses section, select the check box for the clause that you want to remove.

  5. Click Remove.

  6. Click Save or Apply to save your changes.

Deleting Folders

You can delete any folder from the Folders library.

Steps

To delete folders:

  1. Navigate to the Folder page.

    Navigation: Library > Folders tab

  2. Search for the folder that you want to delete. For more information, see the Searching for Folders section.

  3. In the Results section, click the Delete icon for the folder that you want to remove.

  4. Click Yes to confirm.

Considerations for Using Sections, Folders, and Clause Types

The following table covers the purpose and possible implementation considerations for using any of these features. These are considerations, not recommendations:

Details Sections Folders Clause Types
Is setup mandatory? Yes No Yes
What is the intended purpose? Sections are the headings under which clauses are structured and appear together on a printed contract. Folder is a tool for users of the Contract Terms Library to organize clauses that they work on for easy access and retrieval. Clause Types can be used to classify clauses based on nature, type, form, or function.
What are the common examples?
  • Payment Terms

  • Products

  • Pricing

  • Liability Clauses

  • Fixed Price Clauses

  • Localized clauses

Note: One clause can be assigned to multiple folders.
  • Finance clause - Limitation of Liability

  • Miscellaneous term

  • Marketing clause - Termination

  • Finance clause - Special payments

How is it used in a contract? Sections and clauses together form the formatted content of a printed contract. Folders are available as a browse tool for users who are authoring contracts to easily locate and add clauses to a contract. Clause types are used as search criteria for users who are authoring contracts to easily search for and add clauses to a contract.
Clause types can also be used to route the contracts for special approvals. For example, all nonstandard Finance type clauses are to be routed to the Finance group for approval.