Creating Agreements

This chapter provides an overview of agreements and discusses how to:

• Initiate agreements.

• Update agreements.

Understanding Agreements

Before the system can process invoices and payments, an agreement must be established and its terms agreed to by both the buyer and the supplier. The buyer administrator initiates the agreement with the supplier, triggering an email to the user, roles, or both, established by the supplier organization at either the agreement or supplier location level, that there is an agreement ready to be reviewed. After the supplier adds specifications and accepts the agreement, the buyer user who initiates the agreement is notified that a final review of that agreement is necessary. The buyer administrator then performs the final review, accepting the terms, finalizing the agreement, and enabling transactions between this buyer and supplier to commence.

Certain PeopleSoft eSettlements features reference processing options that are established at the agreement level. They are invoice creation, matching, and default ChartField processing logic.

The following sections discuss:

• Agreements in the Buyer Direct Model.

• Agreements in the Business Service Provider Model.

Agreements in the Buyer Direct Model

Agreement setup in the Buyer Direct model is very similar to that for the Business Service Provider model, however, there are important exceptions for the Buyer Direct model:

• Matching terms for purchase orders are not obtained from the agreement, but from the vendor, if a match control ID exists for the vendor.

  Otherwise the matching terms are obtained from the PeopleSoft Purchasing business unit for the purchase order.

• The system uses the payment terms that are specified on the agreement for electronic invoices and self-service invoices.

  Online vouchers that are created in PeopleSoft Payables use the payment terms on the vendor profile (maintained in PeopleSoft Payables or Purchasing). If there are no payment terms for the vendor, the system obtains the terms according to the PeopleSoft Payables default hierarchy.

• Cash collection details are not appropriate for the Buyer Direct model and are unavailable for entry.

• Users with system administrator role types can update payment terms. In such cases the buyer does not receive email notification of the change in terms.

• You must establish a user with a supplier administrator role type before you can register an agreement.

• Users with system administrator role types can access both buyer and supplier agreement details.

Agreements in the Business Service Provider Model

You set up agreements in the Business Service Provider model in the same way we discuss in the following sections, but note the following differences from the Buyer Direct model:

• Matching terms for purchase orders are obtained from the agreement.

• You must establish a user having a supplier administrator role type before you can register an agreement.

See Also

Processing Invoices

Running Matching

Understanding Self-Service Invoice Entry and Management

Initiating Agreements

To initiate an agreement with a supplier, use the Review Agreement Details Inquiry component (EM_AGREE_INQUIRY) and the Agreement component (EM_AGREEMENT).

This section provides an overview of agreement initiation and discusses how to:

• Enter buyer processing preferences.

• Define default ChartFields.

• Specify buyer notifications.

Understanding Agreement Initiation

Agreements are initiated by the user who is associated with the buyer administrator role type, then offered to the supplier for review and approval. Buyers can also define notifications at the agreement level. The email notifications for the buyer appear as the default from the notifications that are set up at the setID level for the buyer who is specified on the agreement. Because multiple buyers can share the same agreement, the email notifications appear set up at the setID level, with the setID determined by record group EM_03.

When an agreement is shared and email notifications are overridden at the agreement level, all buyers sharing that agreement then have the same overridden email notifications. If the defaults from the buyer's setID are used at the agreement level, then the notifications for each buyer are determined from the notifications for each particular buyer setup at the buyer setID level.

At the agreement level, each business unit sharing the agreement can set up different email notifications and routings. The information here can be shared by many buyers. This table shows how sharing works:

In this example, buyers 1, 2, and 3 all share the same agreement, which is set up for buyer 1. For email notifications, buyer 1 and buyer 2 use the same email notification that is set up for buyer 1, but buyer 3 has a unique notification setup.

If, at the agreement, the user decides to accept the defaults, then when processing for buyer 1 and buyer 2 the system uses the email types, routings, and remainder days that are specified at the setID level for BUY01 (notification setup). When processing for buyer 3, the system selects the defaults that are established at the email notification setID BUY03. If the user decides to specify notifications at the agreement level for BUY01 then the system selects the new values that are specified at the agreement level (email type, routing, and reminder days) for buyers 1, 2, and 3.

Warning! When an agreement is shared by more than one buyer, if any one of those buyers overrides the default setup, they also override the email notifications for the other buyers that share the agreement. At this point, the sharing of the agreement should be reconsidered.

At the agreement level, you can define the second-highest level of the PeopleSoft eSettlements self-service invoice ChartField defaulting logic. The system uses a four-level hierarchy to automatically populate certain self-service invoices (those with no copied purchase order or receiver information) with default ChartField values; from highest to lowest level they are:

1. Buyer template.

2. Agreement.

3. Requester.

4. Item.

In general, the system overrides buyer template, agreement level, and requester values with item level values for account, alternate account, and product ChartFields. All other ChartFields default from the agreement level if specified, and if not specified, the requester level.

See Understanding Self-Service Invoice Entry and Management.

Pages Used to Initiate Agreements

Entering Buyer Processing Preferences

Access the Review Agreement Details - Buyer page (eSettlements, Buyer Information, Review Agreement Details, Add an Agreement).

Enter or view processing preferences that are to be applied to invoices from the selected supplier.

Hover your cursor over the supplier name to view a pop up containing address information for the supplier.

Note. If financial sanctions validation is enabled, the system does not consider the financial sanctions status of the supplier, nor does it validate the supplier against any financial sanctions lists (for example, the Specially Designated Nationals (SDN) list). Therefore, you can create agreements for any supplier with a financial sanctions status of Review or Blocked. However, the Pay Cycle Application Engine process (AP_APY2015) does not select invoices for a supplier that has a financial sanctions status of Review or Blocked. You cannot pay these invoices until the financial sanctions status of the supplier is set to Cleared or Valid.

See Understanding Financial Sanctions Validation.

Buyer Processing Options

Comments

Add any comments regarding this supplier.

Bank Information

Buyer bank information populates by default from the buyer registration. You can specify different bank information here, and doing so does not change the bank information on the buyer registration.

Note. The bank information that you specify here populates incoming vouchers. If you require any bank information changes after an agreement is established, you must make them at the agreement level, not at the buyer details level.

Self-Service Invoice Options

See Also

Enabling ChartFields

Specifying Buyer Notifications

Defining eSettlements Installation Options

Defining Default ChartFields

Access the Default Agreement Chartfields page (click the Define Default Chartfields link on the Review Agreement Details - Buyer page).

Establish default ChartField values the system uses to automatically populate self-service invoices when no purchase order or receiver information has been copied into the voucher.

In the four-level ChartField defaulting hierarchy, the system uses these values as the second level. You can edit these values at the invoice level. Buyers can validate the defaulted ChartField values before submitting the invoice to the Voucher Build Application Engine process (AP_VCHRBLD).

See Also

Understanding Self-Service Invoice Entry and Management

Specifying Buyer Notifications

Access the Review Agreement Details - Buyer Notifications page (Select the Buyer Notification tab from the Review Agreement Details - Buyer page).

Agreement Reference

The Buyer, Supplier, and Location information appears by default from the registration level.

Note. At the agreement level, only the host and buyer administrator role types can enable and define routings in the Buyer Direct model. In the Business Service Provider model, only the buyer administrator can enable and define routings.

Notification Types

If you click the Specify Overrides button, enter the appropriate routing information for each notification type in the Enter Routings group boxes.

Note. If a user does not have access to a particular agreement, that user will not receive the email notifications.

See Also

Specifying Buyer Notifications

Updating Agreements

To update an agreement, use the Review Agreement Details component (EM_AGREE_INQUIRY) and the Agreement component (EM_AGREEMENT).

This section discusses how to:

• Enter supplier processing preferences.

• Specify supplier notifications.

The supplier administrator reviews and updates the terms of the initiated agreement, specifies preferences, and—for the Business Service Provider model only—establishes payment and discount terms for the buyer.

Note. In the Buyer Direct model, only a user who is assigned the role type of system administrator can specify payment terms; suppliers cannot.

Pages Used to Update Agreements

Entering Supplier Processing Preferences

Access the Review Agreement Details - Supplier page (Select the Supplier tab from the Review Agreement Details - Buyer page).

Comments

Agreement Information

Supplier Payment Terms

If multiple terms exist, you cannot view them all at once. Use the controls in the Supplier Payment Terms group box header to scroll through them.

Note. In the Business Service Provider model, because the system generates email when a user inserts a new effective-dated row or deletes the current row, if you need to change the payment terms on an agreement, you must add a new row with the date that the new terms are to become effective.

Specifying Supplier Notifications

Access the Review Agreement Details - Supplier Notifications page (click a Buyer link on the Review Agreement Details - Inquiry page).

Agreement Reference

The Buyer, Supplier, and Location fields populate by default from the supplier location level.

The supplier notifications at the agreement level populate by default from the supplier setID level, or from the supplier location level if they are overridden there.

In addition, only those email notification types that are activated at another level can be overridden at the agreement level. Otherwise, if not previously defined at another setup level, all fields that are for the given notification type are not available for entry.

The system administrator selects the notification types and roles at the setID level. At the supplier location level and at the agreement level, the system administrator selects the notification types and the supplier administrator selects the roles.

Notification Types

If you click the Specify Overrides button, enter the appropriate routing information in the Enter Routings group box.

See Also

Specifying Buyer Notifications