Creating Contract Line Information

Item

Select the ID for the item that is being purchased on the contract line. Only items that have an item-supplier relationship established are available for selection.

Entering an item ID is not required for voucher contracts and ad hoc item (description-only) purchase order contracts.

Description

Base language item description for the line item. You can enter an ad hoc item description, or override the current description. This is required for voucher and order contracts.

UOM (unit of measure)

Select the unit of measure (UOM) for the item on this line. This is required for order contracts. If you enter an item ID, the UOM appears automatically from the default item supplier UOM and cannot be changed. This UOM is used as a base for determining quantities such as minimum and maximum quantities and line quantities released.

Category

Select the category of the item. This is a required field for order contracts and recurring purchase order voucher contracts.

Cancel

Click to cancel a contract line. When you cancel a contract line, you cannot perform any further processing against the contract line.

Merchandise Amt (merchandise amount)

Enter the merchandise amount on the line expressed in the contract header currency. This is required for voucher and amount-only contract lines.

Include for Release

Select to release the line. If you want to release this line as a milestone, select the Release as Milestone check box. You can create a milestone line without selecting the Include for Release check box. However, for you to release the line as a milestone line, the Include for Release and Release as Milestone check boxes must both be selected.

If the Release as Milestone check box is not selected, but the Amt Only check box is selected, the line is released as an amount-only line for the full amount. When you release lines, milestone lines cannot be released with nonmilestone lines. Each milestone can have only one release. For example, a 20 percent completion milestone on a construction project is paid using one milestone release when 20 percent of the project is complete. The remaining 80 percent of the project will need to be paid by other milestones, each with one release payment.

For recurring purchase order vouchers, this check box is applicable only for the voucher releases and is available only after the contract line exists on the purchase order. The purchase order releases are generated in the background when a contract line has not yet been released to a purchase order. Therefore, the Include for Release check box is not accessible for purchase order releases of recurring purchase order vouchers.

Status

Displays the status of a contract line item. Values include:

Active: Indicates that the line item is available. This is the normal status for a line.

Cancelled: Indicates that the line has been canceled.

Inactive: Indicates that the line is inactive.

The next field descriptions describe system behavior for canceling and reactivating line items.

Reactivate

Click to reactivate a contract line that has been canceled. While the contract is in a Draft version, you can reactivate a line. If you inactivate a line, it still appears, but the system protects all fields for the line, and the Reactivate button is still enabled.

See the Cancel button description next for more information about using the Reactivate button.

Cancel

Click to cancel a contract line. If you have the authority to cancel contracts, in some cases, the system allows cancellation or inactivation of the line and the Cancel button (a red X) appears for you to perform these actions. Cancellation authority is set up by means of the Cancel Contract check box on the Contract Process page. Select Set Up Financials/Supply Chain > Common Definitions > User Preferences > Procurement > Contract Process.

The next lists provide information about canceling line items when the contract is in a Current version or Draft version. The discussions assume that you are authorized to cancel a line item.

When working with the Current contract version that is in an Open status, consider these rules:

• If a line has not had any releases, the Cancel button appears, and you can cancel the line.

• A line cannot be canceled if no other active lines or categories exist on the contract and open items are not allowed on the contract

• If you cancel a line, it still appears, but the system protects the fields and does not allow releases against the line.

When working with the Draft contract version, which is always in an Open status, consider these rules:

• The Cancel button appears, and you can cancel or inactivate the line.

• If the line item has not had releases against it, you can click the Cancel button to cancel the line.

  In addition:

  • A line cannot be canceled if no other active lines or categories exist on the contract and open items are not allowed on the contract.

  • When you click the Cancel button, the Reactivate button appears.

    While the contract is in a Draft version, you can reactivate the line.

  • If you cancel the line, the line still appears, but the system protects the fields and makes the Reactivate button available.

  • When a change is for the Draft version, the system still allows releases against the line by means of the Current version, while the Draft contract version is in an Open status.

  • If you select the Reactivate button, the system returns the line to its active state as if nothing had happened.

• If the line item has had releases, click the Cancel button to inactivate the line.

  In addition:

  • A line can be inactivated even when no other active lines or categories exist on the contract and an open item is not allowed on the contract.

  • After you select the Cancel button, the Reactivate button appears.

  • If you inactivate the line, it still appears, but the system protects the fields and keeps the Reactivate button enabled.

  • When a change is for the Draft version, the system allows releases against the line by means of the Current version while the Draft version is in an Open status.

  • If you click the Reactivate button, the line returns to its active state as if nothing had happened.

• If you cancel or inactivate a line item, when the Draft version is approved, the Reactivate button is no longer available.

  In addition, if that line originated from a sourcing event or request for quote, the system puts the remaining unreleased quantity back on the sourcing event or the request for quote rewarded again.

• When inactivated or canceled, the category or line continues to appear, and the system protects the fields. The system continues to update released amounts and quantities until all existing purchase orders against the now History version are processed.

Add Rows

Click to add a single line item or multiple line items to this contract. This button is not available if the contract is in an Approved status. When you select to add a row or multiple rows, the system inserts the new rows below the current row.

Delete Row

Click to delete a single line item from this contract. This button is not available if the contract is in an Approved status.

Amt Only (amount only)

Select this check box if the contract line is to be received by amount. This check box must be selected for you to enable the milestone functionality. Amount-only functionality is not available when you select the Release to Single PO Only contract process option on the Contract page. This check box is selected and unavailable for entry for recurring PO voucher contracts.

If this check box is selected:

• The quantity field is unavailable for entry and is set to 1 on the release.

• The PeopleSoft Inventory business unit field becomes unavailable for entry on the release distribution for order contracts.

• The Merchandise Amt field on the contract line becomes a required field.

Release as Milestone

Select to designate a milestone line. Milestones are not applicable when you select the Release to Single PO Only contract process option on the Contract page. The Amount Only check box must be selected for you to use milestone functionality.

If the Release as Milestone check box is not selected, but the Amt Only check box is selected, the line is released as an amount-only line for the full amount.

When you release lines, milestone lines cannot be released with nonmilestone lines.

Each milestone can have only one release. For example, a 20 percent completion milestone on a construction project is paid using one milestone release when 20 percent of the project is complete. The remaining 80 percent of the project must be paid based on other milestones, each with one release payment.

UPN Type

Select the applicable UPN Type.

UPN ID (Universal Product Number Identifier)

Select applicable universal product number that is defined by a unique combination of item ID, manufacturer ID, manufacturer item ID, and Unit of Measure.

On selecting the UPN ID, the item line information associated with the selected UPN ID will be populated.

Use Contract Base Price

For Ad Hoc Line Items, this option is already selected and cannot be edited. However, for Item ID Line Items, this option can be selected or deselected.

Base Price

This field is available for entering a base price when the Use Contract Base Price is check box is selected.

For lines with Item ID, the Base price is derived from the item's Purchasing Attributes page.

Currency

Enter a currency that applies to the item price.

Total Line Released Amount

Displays the total amount released to date for the line that is expressed in the contract header currency. This value is updated by the PO Calculations process, online purchase order entry, or PeopleSoft Payables Batch Voucher process.

Total Line Released Quantity

Displays the total quantity released to date for the line expressed in the contract line unit of measure. This value is updated by the PO Calculations process or online purchase order entry.

Select for Grouping

Select to add the items that you select to an existing line group, add them to a new group, or remove them from a group.

Add Selected Lines to Group

Select an action to perform against the line items that you selected using the Select for Grouping check box. Values that appear in the list of values include:

• Existing line groups: Select an existing line group that has been defined for this or any other contract. If you select an existing group, the system adds the single item or multiple items to the line group when you click the OK button. It also displays the line group ID in the Group ID field and deselects the Select for Grouping check box.

• A blank selection: Select to remove a contract item from the line group, but leave the item on the contract. You can also perform this action using the Remove From Groups value.

• Add to New Group: Select to create a new line group. The system displays a Group ID group box below the Lines grid along with a Description field for the new line group. After adding the new value, click the OK button, and the system places the new group in the Group ID field in the Lines grid.

• Remove From Groups: Select to remove items from a line group. If you select a line for removal that is already on the contract as a standalone item, the system removes the standalone line from the contract. If the item you select for removal from the group is not already on the contract as a standalone item, the system displays a prompt asking whether you want to keep the item on the contract.

  Note: If you select a line item and do not select a line group, or you add or remove the item from a group, the system removes the item when you click the OK button. If you decide to keep the item on the contract, the system clears the Group ID field.

Group ID

Displays the line group to which a contract item belongs. If the item is not a part of a line group, the field is blank.

Notify on Spend Threshold

Indicates whether the buyer is to be notified when the spend threshold is met or exceeded. If the check box is selected, the system notifies the buyer. When you select this check box, the buyer becomes required for the contract. You can define the buyer using either the Contract Maintenance page or on the Thresholds & Notifications page.

Threshold Notification Amount

Displays the amount at which the system notifies buyers and interested parties that the spend threshold has been met or exceeded. This is a required field if the Notify on Spend Threshold check box is selected.

Total Line Released Amount

Displays the amount that has been released for the contract line.

Physical Nature

Indicates whether the object is a physical good or service. Values are Goods and Services.

Minimum Line Amount

Enter a minimum amount that must be met when you are defining a release for this line. This is the minimum line amount per contract line per release. For example, if the supplier requires a minimum dollar value when creating a purchase order, you would specify that here. This value is expressed in the header currency.

Maximum Line Amount

Enter the maximum amount that is allowed for this particular line of the contract for all releases against this contract line. The total amount for all the releases cannot exceed the amount that you define here. This value is expressed in the header currency. This value is used for the purchase order line amount for recurring purchase order voucher contracts.

Minimum Line Quantity

If you specify a minimum line quantity, the system does not enable you to create a release that is below the minimum quantity. For example, the supplier does not process orders unless you order at least five bicycles at one time. This value appears by default from the Supplier's UOM & Pricing Info page, but it can be overridden here. This value is expressed in the default line unit of measure.

This value may appear automatically from RFQ award quantity, and it can be changed.

Maximum Line Quantity

Enter the maximum line quantity that the supplier enables you to order for this particular line for all releases against this contract line. For example, the supplier might agree to sell you 10 bikes at a special price, but when you have purchased the 10 bikes, the supplier does not enable you to order additional bikes at this special price. This information appears by default from the Supplier's UOM & Pricing Info page, but it can be overridden here. This value is expressed in the default line unit of measure.

When creating a blanket order, use this field to enter a maximum line quantity.

This value may appear automatically from RFQ award quantity, and it can be changed.

Use Contract Base Price

Select to use the base price on the contract rather than the price on the Supplier's UOM & Pricing Info (supplier's unit of measure and pricing information) page as the base price when calculating the purchase order price for the item. The Base Price field becomes available for entry when you select this check box. For ad hoc items, this check box is selected and unavailable for entry because a base price value is required for ad hoc items.

Price Can Be Changed on Order

Select to be able to change the calculated price on purchase orders. If you select a specific contract line, the system will check the setting at the line level. The value is applicable whether you are creating releases from the contract, whether the contract is manually selected on the purchase order, or whether sourcing finds it. If you do not select this check box, the system-calculated price for the item is a protected field on the purchase order.

Price Date

Select the date that the system uses to calculate purchase order prices for the item. Options are PO Date and Due Date.

Price Qty (price quantity)

Select either the line quantity or the schedule quantity as the quantity that the system uses to calculate purchase order prices for the item.

Qty Type (quantity type)

Select the quantity type. Options are Quantity to Date and Current Order Quantity. If you select quantity to date, the cost per item is based on a cumulative quantity ordered. If you select current order quantity, each order stands on its own.

Use Vndr Price UOM Adjustments (use supplier price unit of measure adjustments)

Select to use the UOM-based supplier price adjustments, if any, when pricing the item.

Use Supplier Price Shipto Adjust (use supplier price shipto adjustments)

Select to use the ship-to-information-based supplier price adjustments, if any, when pricing the item.

Adjust

Select whether the system calculates supplier price adjustments before or after the contract price adjustments. This option applies only if the calculation type is Increment Adjustments . Options are:

After Contract Adjustments: Select to have supplier price adjustments calculated after the contract price adjustments.

Before Contract Adjustments: Select to have supplier price adjustments calculated before the contract price adjustments.

Amount Only

Select this check box if the contract line is to be received by amount.

Merchandise Amount

Enter the merchandise amount on the contract line. If the Amount Only check box is selected, this becomes a mandatory field.

Qty 1–2

200.00 USD each

Qty 3–4

175.00 USD each

Qty 5–100

130.00 USD each

Release Default

Select to determine the default price, UOM, supplier location, and currency on the releases for this contract line. One default UOM row is required for generating releases. You must specify a default UOM price in the Base Price field.

Price Loc (price location)

Select the supplier price location to use for pricing on this contract line. This field is required for order contracts.

UOM

Select the unit of measure to be used on the purchase order. The system generates the default unit of measure from the Supplier's UOM & Pricing Info page. When you order by description, all UOMs are available. When you order by item ID, only valid UOMs are available.

UPN Type Code

Select applicable UPN Type Code.

UPN ID (Universal Product Number Identifier)

Select applicable universal product number that is defined by a unique combination of item ID, manufacturer ID, manufacturer item ID, and Unit of Measure.

On selecting the UPN ID, the item line information associated with the selected UPN ID will be populated.

Base Price

Displays the base price to be used as the system-calculated purchase order price for the contract item. This base price appears by default from the Supplier's UOM & Pricing Info page, and it can be changed if you select the Use Contract Base Price check box. If you enter an adjustment on the PO Price Adjustments for Line page using the Match Ship or General Adjustment check box, the base price on the line is the price upon which the adjustment is performed. This field is required for order contracts and must be entered manually for order-by-description items.

Curr (currency)

Select the currency to use for this contract line item. This currency can be different from the currency that is specified at the overall contract level. The currency on the release must be the same as the currency on the UOM line that is selected as the default. Only currencies that are defined on the Supplier's UOM & Pricing Info page are available for selection in this field. However, when you order by description, all currencies are available. This field is required for order contracts. If the Allow Multicurrency PO check box is not selected at the contract header, this value appears automatically from the contract header and cannot be changed here.

Withholding Applicable

Select to designate a withholding that is applicable to the supplier. This field is used on voucher contracts but not on order contracts.

Withholding Code

If withholding is applicable on this line, enter the withholding code. This field is used on voucher contracts but not on order contracts.

Tax Destination

Select the location code on which the sales and use tax (SUT) calculation for the voucher should be based. The system uses this as the tax basis.

SUT Excptn Cert (sales and use tax exception certification)

Select to indicate that the line is an SUT exception. Values are:

• Direct Pay: Identifies the value in the Ship To field as a direct pay location so that all direct pay transactions can be tracked as such. Voucher lines that are designated as direct pay require a use tax code on the voucher line. The system treats a direct pay line as a use tax line, except that it uses a different value for tax applicability.

• Exempt/Exonerated: Identifies the Ship To field value as exempt. Enter an associated tax exempt ID in the adjacent field.

• None.

Tax Code SUT (tax code sales and use tax)

Select the tax code for the line. A tax code consists of a group of tax authorities. For example, if a certain locality has a city tax, trade use tax, county tax, and state tax, you can create four tax authorities and group them into a single tax code.

SUT Apply (sales and use tax apply)

Select the SUT applicability rule for the line. Options are:

• Item is Exempt: Select if the item on the line is exempt from sales and use tax.

• Purchaser Is Exonerated: Select if you, as the purchaser, do not have to pay sales or use tax. Tax is not calculated for the line and accounts payable does not pay taxes.

• Sales Tax Appl (sales tax applied): Select to calculate and apply sales tax to the line.

• Direct Pay: Select if you do not want sales tax calculated. The invoice is not created with sales tax, but a line is written to the general ledger for the amount that you will directly pay to the state.

• Use Tax Appl (use tax applied): Select to calculate and apply use tax to the line.

Ultimate Use Code

Select an ultimate use code to override the default tax rate for a location. In most cases, the sales tax is computed as a use tax based on the tax code that is applicable to the ship to or use destination. However, how merchandise is ultimately used may also result in a different tax rate within the same ship to or use destination.

Include for Release

Select to release the milestone line.

If the contract is for a recurring purchase order voucher, you can select this check box only after the contract line exists on the associated purchase order.

Status

Displays the milestone status. Options are:

• Ready: Indicates that the milestone is ready. Only milestones that have Ready status are available for selection when you are creating releases against the contract. The status of the milestone changes to Ready when you select the Release as Milestone check box on the Contract page on the Order by Amount tab, unless the milestone line was previously released.

• Complete: Indicates that the milestone has been released and the milestone line is unavailable for entry.

• Pending: Indicates that the milestone has not been released and the Release as Milestone check box on the contract line is not selected.

% Complete (percent complete)

Enter the completion percentage that is necessary for the milestone line to take effect. The total of the milestone line percentages must equal 100. This value is used to calculate the released amount.

Amount

Enter the amount to be paid on the milestone line. The total of the milestone line amounts must equal the value in the Control Total field.

Target Date

Enter the target completion date for the milestone line. This is for your reference only.

Percent

Enter the distribution percentage. This percentage is calculated based on the amount on the voucher distribution. The total percentage must equal 100.

Business Unit and Profile ID

If you consider an item to be an asset and plan to pass it on to the PeopleSoft Asset Management application through the PeopleSoft Receiving business process, you must complete both the Business Unit (PeopleSoft Asset Management business unit) field and the Profile ID field.

If both fields contain values, the system writes data to the PeopleSoft Asset Management staging tables. Both fields must be completed for the system to treat the item as an asset. If only one of the fields is completed, the system does not treat the item as an asset. All of the information that you enter on this page is passed to PeopleSoft Asset Management.

Dist Merch

This field becomes visible on Contract PO Default Distributions for general contract and purchasing order contract, if the corresponding line ‘Amount Only’ flag is checked.

The total distribution amount and the related line merchandise must be equal and the total percentage should be 100. If you change any of this value, the distribution merchandise and percentage is recalculated. The same functionality applies also in case you have multiple business units.

The Distribution Merchandise amount is calculated as Line merchandise amount * percentage of accounting tag (or speedchart) when using accounting tag (or speedchart) template to default the distributions.

Percent

Enter the distribution percent. This percentage is calculated based on the amount on the purchase order distribution. The total percentage must equal 100.

Business Unit and Profile ID

If you consider an item to be an asset and plan to pass it on to the PeopleSoft Asset Management application through the PeopleSoft Receiving business process, you must complete both the Business Unit (PeopleSoft Asset Management business unit) field and the Profile ID field.

If both fields contain values, the system writes data to the PeopleSoft Asset Management staging tables. Both fields must be completed for the system to treat the item as an asset. If only one of the fields is completed, the system does not treat the item as an asset. All of the information that you enter on this page is passed to PeopleSoft Asset Management.