Defining GPO Contracts

To define manufacturers, GPO manufacturers, rebates, definitions, and distributors, use the Manufacturer (MANUFACTURER), GPO Manufacturer (MFG_GPO), GPO Rebates (MFG_GPO_REBATE), GPO Definition (GPO_NAME), and GPO Distributor (MFG_GPO_SUPPLIER) components.

This section provides an overview of the GPO contract definition process.

Page Name

Definition Name

Usage

Manufacturer Page

MANUFACTURER

Define each manufacturer of items.

General Information - Identification or Supplier - Identifying Information Page

VNDR_ID1

Define each distributor of GPO contract items as a supplier.

Define GPO Page (define group purchasing organization)

GPO_NAME

Define group purchasing organizations.

Define GPO Manufacturer (define group purchasing organization manufacturer) Page

MFG_GPO

Define GPO contracts.

Tier Requirements

MFG_GPO_REQ

Enter details concerning tier requirements of the GPO contract.

GPO Distributor (define group purchasing distributor) Page

MFG_GPO_SUPPLIER

Enter the GPO contract distributors (suppliers) and their markup percentages.

GPO Rebates (define group purchasing rebates)

MFG_GPO_REBATE

Enter any rebates received for this GPO contract. Update this page whenever a rebate is received against this contract.

To define GPO contracts:

  1. On the Manufacturer page, define a manufacturer ID for each manufacturer of contract items.

  2. Using the Supplier Information component, define each distributor as a PeopleSoft Supplier.

    If you can buy directly from the manufacturer of the item, the manufacturer should also be defined as a supplier.

  3. On the Define GPO page, define a GPO ID for each group purchasing organization.

  4. On the Define GPO Manufacturer page, define each GPO contract with a GPO contract ID and contract details.

  5. (Optional) On the Tier Requirements page, identify any tier requirements contained in the GPO contract.

  6. On the GPO Distributor page, enter the GPO contract distributors (suppliers) and their markup percentages.

  7. (Optional) On the Define GPO Rebates page, enter any GPO contract rebates received.

In PeopleSoft Purchasing, two ways are available to manage vendor rebates for GPO Contracts:

  • Manually record the vendor rebates received from the manufacturer using the GPO Rebates page.

    This is for reporting purposes only.

  • Use the vendor rebate functionality to automatically manage and process vendor rebates for GPO contracts.

If you decide to use the vendor rebate functionality, using the GPO Rebates page to enter vendor rebates is not necessary. The vendor rebates for the GPO contract are managed and processed within the vendor rebate functionality.

Note: The vendor rebates functionality won't copy the vendor rebates back to the GPO Rebates page because the rebates are already managed within the vendor rebates functionality. If you still want to use the GPO Rebates page in addition to the vendor rebate functionality, you can, but you will have to manually update the GPO Rebates page.

Use the Define GPO Manufacturer (define group purchasing organization manufacturer) page (MFG_GPO) to define GPO contracts.

Navigation:

Purchasing > GPO Contracts > GPO Manufacturer > Define GPO Manufacturer

Field or Control

Description

Buy from this Manufacturer

Select this check box if you can buy items directly from the manufacturer. The system creates a record on the GPO distributor table for the manufacturer, with default markup of 0.

Supplier ID

Enter the manufacturer's supplier ID if you can buy directly from the manufacturer. If you are using vendor rebate functionality, the system uses this supplier associated with this manufacturer to assign the vendor rebate agreement to a purchase order.

Note: You must select the Buy from this Manufacturer check box and select a supplier ID for the vendor rebate functionality to be handled correctly for this manufacturer. If you do not specify the manufacturer's supplier ID, you can still optionally manage vendor rebates with the distributor's supplier ID (the supplier on the purchase order).

Supplier GLN

Displays the GLN Values.

Committed Contract

Select this check box if you are committed by this contract to purchase a minimum level calculated by amount, by percentage, or both.

Commitment % (commitment percentage)

Enter a percentage if the contract commitment is based on the percentage of overall spending for the organization.

Commit Level Amount

Enter the amount that must be purchased based on the contract commitment.

Contract Tier Level

If the contract's commitments have multiple purchase levels, then enter the contract tier designation (for example, tier 1, tier 2, and so on). Enter the tier pricing that applies to the organization.

Tier Requirements

If the contract commitments have multiple purchase levels, then enter the organization's requirements (for example, amount per year) for the contract tier levels.

More

Click to access the Tier Requirements page. Use that page to document the contract tier levels and their requirements.

Price Expiration Date

Enter the expiration date for the contract pricing.

Maximum % Increase (maximum percentage increase)

Enter a percentage to indicate contractual price change limits. Price increases can be approved on the GPO Item Selection page.

Increase Type

Select the base for the calculation of the price increase percentage. Options are:

  • % of CPI: Percentage of consumer price index.

  • % of MPI: Percentage of medical price index.

  • Straight %: Percentage of existing manufacturer price.

Rebate Frequency

If rebates are received per this contract, enter the time period for rebate calculation. Options are:

  • Annual: Rebates are calculated once per year.

  • Quarterly: Rebates are calculated four times per year.

  • Sem Annual: Rebates are calculated twice per year.

Use the GPO Distributor (define group purchasing distributor) page (MFG_GPO_VENDOR) to enter the GPO contract distributors (suppliers) and their markup percentages.

Navigation:

  • Purchasing > GPO Contracts > Distributor > GPO Distributor

  • Click the Distributors link on the Define GPO Manufacturer page.

This page defines the distributors (suppliers) associated with the GPO contract.

Supplier Information

Field or Control

Description

Priority

Enter the supplier's priority number to identify primary, secondary, and tertiary distributors. Use the insert-row feature to add as many distributors as needed.

Supplier GLN

Displays the GLN Values.

Note: In this page the Supplier GLN field does not change dynamically since the field is added in the grid.

Price/Contract Info

Select the Price/Contract Info tab.

Field or Control

Description

Markup % (markup percentage)

Enter the markup percentage that the system applies to the manufacturer's price to create the distributor purchase price.

Contract ID

Select any standard contract opened for this supplier. Purchases can be reported against both a GPO contract and a standard contract.