Creating Contract Documents for Purchase Orders

Creating contract documents from purchase orders enables you to author contract documents based on purchase orders and express purchase orders, which is an alternative to using a purchasing contract as a source. This functionality is intended for customers who do not use PeopleSoft Purchasing contracts, but want to author a contract document based on a purchase order. When you base a document on a purchase order, the system can use values from that purchase order to process rules and content within the document configurator, or as fill-in-the-blank values for the authored document.

You can create an authored document from purchase orders and express purchase orders from within PeopleSoft Purchasing. You can also create a purchase order document from the Contract Entry - Contract Page by selecting the Purchase Order source transaction and selecting a purchase order ID. Before you can create a purchase order contract document, you must enable transactional sources for purchase orders on the Installation Options - Supplier Contract Management Page.

Authored documents from purchase order source transactions are similar to those for purchasing source transaction documents. For example, you can import a legacy contract to create a purchase order contract the same as you can to create a purchasing contract. Or, you can copy a purchase order document the same as a purchasing contract document.

The similarities and differences to authoring documents using purchase orders include:

• Using a related request document tied to requisitions to capture wizard responses for use with a purchase order contract document that you create later.

  See Using Wizard Responses from Requisition Documents in the Understanding How To Create Purchasing Contract Authored Documents topic.

• Using PeopleSoft Strategic Sourcing, you cannot award events to a purchase order that has bid factors with agreements and clauses tied to them because the system does not support agreement capability for purchase orders as it does for transactional purchasing contracts.

• Performing searches that use purchase order search criteria, and reports that provide purchase order-based contract information.

• Accessing source transaction documents for purchase orders from the supply-side.

  As with authored documents related to the transactional contract, you can configure the system to allow for supply-side access (collaboration and signing) of purchase order authored documents.

  See Reviewing and Collaborating on External Documents.

• Controlling purchase order document versions.

  Note: Documents that you create, or refresh from purchase orders, are always based on the latest updates to the purchase order. This is the original purchase order or any change orders that have been applied to the purchase order.

• Using purchase order workflow, document management workflow, or both.

  Depending on organizational requirements, you can configure the system to use the Approval Framework for purchase orders and documents within Supplier Contract Management. You can also define additional workflow configurations within an approval process definition that determine the types of approvals, and when they are needed for the purchase order versus the authored document.

• Copying a purchase order authored document along with copying a purchase order.

  When you create a purchase order by copying it from an existing order, the system checks for an existing document for the purchase order. If a document exists, the system displays a message asking you if you would like to copy the document as well.

  See Maintain Purchase Order - Purchase Order Page.

• Dispatching attachments for purchase order documents.

  As with the transactional purchase contract, you can optionally dispatch (e-mail) related purchase order attachments with the authored document within PeopleSoft Supplier Contract Management.

  See Dispatching Documents.

Validate Purchase Order Contract Documents

When you create a purchase order document, the system verifies that the purchase order can have a document associated with it. The system provides warnings when it detects a problem with associating a document to a purchase order. The warnings do not prevent you from creating the document.

As part of the validations, the system provides warnings when:

• A purchase order line has already been associated with a purchasing transactional contract.

  Contract documents should normally be authored from the purchasing transactional contract and not the purchase order, because the purchase order could have lines pointing to multiple purchase order transactional contracts.

• The purchase order is tied to a group purchasing organization (GPO) contract.

  Single GPO contracts are set up outside of the Enterprise Resource Planning (ERP) system. These are normally supplier- and distributor-side contracts. Also, each purchase order line could be tied to a different GPO contract as well. An ad hoc contract document would be better to use for creating the initial GPO contract.

• The purchase order is associated with a PeopleSoft Services Procurement-related work order.

  If the purchase order is associated to a Services Procurement work order and a purchasing transactional contract is not being used, then the Services Procurement work order would normally serve as the contract.

• The purchase order is subcontracted.

  Purchase orders that are subcontracted are likely to have an established contract prior to creating the purchase order from the production ID. This is performed within your manufacturing application

• The purchase order is a drop-ship order.

  Drop-ship purchase orders are created using PeopleSoft Order Management and the purchase is typically not a contract. If the purchase order is going to be contract-related, use the purchasing transactional contract at the line level for contract authoring.

• The purchase order is for stockless or consigned items.

  Purchase orders for stockless and consigned items are not contract-related or may already have a purchasing transactional contract.

Map Purchase Order to Authored Document Status

This table provides general guidelines for managing transactions with a specific purchase order status versus a specific authored document status. As is with the transactional contract, the system allows two statuses to function independently to support the need for various transactional related processing independent from authored document and signatures. The mappings include:

Purchase Order Status	Status Description	Typical Authored Status	Comments
Open	This is a new and unapproved purchase order.	Draft to Executed	This represents the initial contract draft.
Pending Approval	The purchase order is in the approval process (optional).	Draft to Executed
Approved	The purchase order is approved for dispatch or for a change order.	The document has been executed at least once, but could be in the next amendment cycle.	The contract should be executed prior to the purchase order approval.
Dispatched	The purchase order or change order has been dispatched.	The document has been executed at least once and could be in next amendment cycle.
Open (Reopen for change order)	The change order is in process.	Executed: The system does not change the original document and changes the amendment related to this purchase order.	The contract might require a change depending on the purchase order change. If an amendment is required first, then you typically amend or execute the document prior to reopening the purchase order for change.
Cancelled	The entire purchase order has been cancelled.	Deactivated	The document was left in last status but marked as Deactive
Complete	The purchase order has been dispatched and closed	Executed or Deactivated	The document was left in it's last status but marked as Deactive.

Use the Create Document page (CS_DOC_CREATE) to add documents for purchase orders.

Navigation:

Supplier Contracts > Create Contracts and Documents > Document Management. Click the Add a Document button on the Add a Document page.

Navigation:

• Purchasing > Add/Update POs > Maintain Purchase Order-Purchase Order. Click the Create Document button on the Maintain Purchase Order-Purchase Order page.

• Purchasing > Add/Update POs > Express Purchase Order-Purchase Order. Click the Create Document button on the Express Purchase Order-Purchase Order page.

Navigation:

• Purchasing > Add/Update POs > Maintain Purchase Order-Purchase Order. Click the Maintain Document button on the Maintain Purchase Order-Purchase Order page.

• Purchasing > Add/Update POs > Express Purchase Order-Purchase Order. Click the Maintain Document button on the Express Purchase Order-Purchase Order page.

For additional information about this page, see the Create Document Page in the Creating Authored Documents topic.

After creating a contract document for a purchase order, you can manage its life cycle the same as other authored documents using the document authoring system. This page is similar to the page that you use when adding a purchasing transactional contract, but the fields relate to purchase orders.

After you define the basic information for the purchase order document, click the Add a Document button. The system displays the Create Document Page where you can define additional details for the document, such as the document type, cycle times, and internal and external contacts. You can also import a legacy document and use it as the purchase order contract document.