Supplier Contract Management Integration with Other PeopleSoft Applications

Using the contract execution functionality in the purchasing system, you have access to these Supplier Contract Management features:

• Electronic contract repository.

• Document authoring capabilities.

• Contract compliance monitoring features.

  Agreements are assigned through PeopleSoft Strategic Sourcing bid factors and Purchasing contract maintenance. This formal tracking process makes it possible for you to ensure that a supplier is in compliance against the agreements in a contract. Among the measurement methods is a metric measurement based on procurement history.

• Requisition document types.

  You can create and link to requisition documents for use with Purchasing requisitions. The benefit of this feature is that you can gather information for a contract during its requisition stage and then use that information to develop the contract.

• Contract documents based on purchase orders.

  The purchase order maintenance functionality in PeopleSoft Purchasing is also integrated with the PeopleSoft Supplier Contract Management application, enabling you to create and maintain contracts that are linked to purchase orders as an alternative to the transactional contract.

• Spend threshold limits.

  A spend threshold is a specific monetary amount for a contract or contract item. Using the Spend Threshold feature, you can define the threshold and then notify users when spending on a contract crosses the threshold amount. In addition to defining a spend threshold, Supplier Contract Management provides the Contract Alert Workflow component to notify buyers when spend thresholds have been reached.

Within PeopleSoft Purchasing, you can choose to use the document authoring system upon which to base contract documents. Using the authoring system, you can create document clauses that link to transactional information and then use that information to create the contract document.

You use bind variables and rules to define what transactional information to use in a contract document. For example, using bind variables in clauses, you can pull information from data fields in the contract to complete the clause. Or, you can use a rule to define data fields that include specific information, such as a supplier name, item category, or contract amount. When you create the initial document, the authoring system resolves the binds and rules from the purchasing contract to generate the document. After a contract document is created, you can access the repository to maintain the document through its life cycle.

In addition, using a wizard you can build a contract document by answering predefined questions about the contract. Based on the responses, the system selects the appropriate clauses from the library and adds them to the contract document or invokes rules to include specific content. Wizards use binds and rules to resolve transactional data for contract documents.

An example of how you could use the clause library and contract document to interact with transactional information on the contract might be to create a one-year contract for purchasing steel-alloy waste drums for hazardous material disposal along with a service requirement for the loading and removal of the filled cans. This table describes how you might accomplish this using a combination of wizard bind values and transactional bind values:

Strategic Sourcing enables you to associate clauses to bid factors to provide additional legal, policy, or other terms to bidders during the bidding process. If a sourcing event is awarded to a contract, those clauses can then be attached to the awarded transactional contract. The system adds the bidder's awarded value for each bid factor to the contract agreement and tracks it for compliance. When you create an authored document for the transactional contract, the system includes the additional contract-specific agreement clauses in the authored document.

Using sourcing bid factor setup, you can also associate agreements with clauses to a bid factor, which enables you to automatically include any agreement-related clauses that are not included in the event when you create the contract. Use the following features to manage events and bid factors:

• Search for and associate clauses to bid factors.

  Clauses you assign are populated onto the sourcing event when you use the related bid factor on the event.

• Associate contract agreement codes to bid factors.

  You can assign one or more agreement codes to a bid factor. Then, if a sourcing event that contains the bid factor that is marked to include on a contract is awarded to a contract, the system adds the agreement codes associated with the bid factor to the contract. It also populates the negotiated result field with the awarded bidder's bid factor response for each agreement associated with the bid factor.

• Link default clauses to bid factors on sourcing events.

• View, add, and delete event-related clauses during event creation.

• Define when a bid factor clause is included in a contract.

• Create agreements on the contract for all bid factors that are selected to include on the contract when you award a sourcing event to a contract.

  The system populates the bidder's response for those factors so that you can track and measure the adherence to the terms.

• Select the type of contract when awarding to a contract.

  The system creates agreements on the contract for all bid factors that are marked Include on Contract.

  Note: The Strategic Sourcing application generates an awarded contract that is accessible in the Supplier Contract Management application.

  If the bid factor already has one or more associated agreements, the system populates the contract with those associated agreements. If no agreements are associated with the bid factor but the bid factor is marked as Include on Contract, the system creates an ad hoc agreement on the contract for each bid factor. The system creates the contract using one of the following contract types:

  • Purchase order for creating a purchase order transaction, but not agreements on the transaction.

  • General contract for creating a contract transaction with a process option of General Contract.

  • Purchase order contract to create a contract transaction with a process option of Purchase Order.

  • Single release purchase order contract to create a contract transaction with a process option of Single Release PO Only.

PeopleSoft Supplier Contract Management integrates with PeopleSoft eProcurement through documents that you create based on a requisition. When you create an eProcurement requisition, a link is available that accesses the document authoring system. And, within the document authoring system, you can define the business unit and requisition to which you want to assigned the document.

The intent for requisition document creation is to define a related document and wizard that captures additional information from the a requester as they progress through the contract request. When a document type is setup for the contract request, you can specify that the system use the type with an eProcurement or Purchasing requisition. Along with the requisition, the requester creates a request document by launching a wizard that captures needed information pertaining to the contract request. The requester can then provide the required information in the supporting document.

When you award the requisition to a contract, the contract specialist can reference the original request document and make use of any wizard responses within that request document to help drive the content and fill in required data on the actual contract. The benefit of this process is that by the time that the contracting specialist becomes involved in the process, the requester has already been prompted for and provided much of the information up front.