Procurement, Supplier Contracts and Agreements Guide
11g Release 5 (11.1.5)
Part Number E22850-06
Approving Enterprise Contracts: How It Works
Frequently Asked Questions for Approving Supplier Contracts
A contract must be approved before it is executed. Use a single application to approve all types of contracts irrespective of the type.
Complete the following tasks before you submit a contract for approval:
Review contract deviations, if any
Validate the contract
Preview printable version of the contract
The following sequence explains the complete flow of contract approval, from approval policy setup to contract approval to contract acceptance:
The system administrator or contract administrator sets up approval policies and approver groups.
A contract is submitted for approval.
The next approvers can view the approval task in their My Worklist area.
The contract is reviewed for approval. Contract review may include the following:
Approver requests more information for approval.
The application sends the approval request to the next approver in the hierarchy.
Approver delegates contract approval.
Approver transfers contract approval to another approver.
The contract is approved or rejected.
Customer or supplier accepts the contract or requests changes.
View approval status and history.
The business analyst or system administrator sets up approval policies, and defines the following categories of approvers:
A single or chain of approvers based on a set of rules
The application automatically sends a notification to the approver when a contract is submitted for approval. Contracts pending approval appear on My Worklist.
Attach the following documents to the contract and submit for approval:
Primary contract document with the terms and conditions.
Contract documents such as state of work, drawings, and so on.
Contract deviation, if any, and deviation justification.
Use one of the following work areas to submit a contract for approval:
Contract authoring page
Contracts search results
Contracts work area
Validate the contract before submission or the application automatically validates the contract when you submit it, listing any errors and warnings. You need to fix the errors but you can ignore the warnings and continue with the submission. If the contract is submitted without errors, the application sends it for approval, and its status changes to Pending Approval.
Withdraw a contract from approval if you want to make any changes before it is approved. If you withdraw a contract from approval, the contract's status changes to Draft or Under Amendment so that you can make changes and resubmit.
You need to review a contract in detail to approve or reject it. Alternatively, go to the History tab to view approval or rejection details in the approval region and comments in the snapshot view for the version and approval submission date and time. You can also ask the contract author for more information if required, or ask an approver to re-examine and re-approve the contract. Optionally, delegate or transfer the approval task to another approver.
If you delegate the approval task to another approver, the assignee approves or rejects the contract on your behalf. If you transfer the approval task, you are no longer associated with the approval or rejection.
Get a complete view of the contract from the approval task details page.
Approve or reject a contract after a complete review of the contract. Optionally, add comments to explain why you approved or rejected a contract. If this contract version is submitted again for approval, the approver can see your comments in the snapshot view.
When you approve a contract, its status changes as follows:
If the contract requires acceptance, its status changes to Pending Acceptance.
If the contract does not require acceptance, its status changes to Active.
When you reject a contract, its status changes as follows:
If the contract was Pending Approval, its status changes to Draft.
If a version of the contract was already Active, and its next version was Pending Approval, its status changes to Under Amendment.
Accept a contract if you agree with the terms and conditions, and all of its contents. If you want any changes, reject the contract and request changes.
If you accept a contract, its status changes to Active. If you reject a contract, its status changes to Draft or Under Amendment.
Optionally, enter your signature in the contract History when you accept a contract. The History tab of an Active contract allows you to create, edit, and delete signatures.
From the History tab, view the approval status while a contract is in approval, and the approval history after it is approved or rejected. You can view the approval history of the last approval cycle for a version, by leaving the default Approval Submitted On date and time in the Approval region.
To check if a contract was rejected, search for the contract and view the contract history.
You cannot search for a rejected contract by its status because a rejected contract does not have status of Rejected. If a contract is rejected, its status changes back to Draft.
To view rejection reasons see the comments section of the snapshot view.
You cannot see all contracts because the worklist lists only contracts that require your approval.