Understanding How to Apply Procurement Contract Prices to Transactions

The PeopleSoft Purchasing application is integrated with procurement contract functionality to streamline the use of contracts with requisitions, purchase orders, and vouchers. As part of the contract functionality, you can:

• Set up and use procurement contracts by item, category, or open item reference.

  Using a category or categories tied to a contract, you can set up requisitions and purchase orders to reference the contract for any items under those categories.

  See PeopleSoft Source to Settle Common Information: Understanding Contract Categories.

• Use procurement contract version control and change tracking so that you can view contract versions on requisitions, purchase orders, and vouchers.

  See PeopleSoft Source to Settle Common Information: Defining Contract and Vendor Rebate Control Parameters.

• Specify whether the system automatically supplies a contract on a requisition.

• Specify whether the system automatically supplies a contract on a manual purchase order.

• Control whether the system automatically searches for contracts when sourcing requisitions.

  When sourcing requisitions in batch or processing online purchase orders, the system evaluates system settings to determine whether to check for prices and use a contract on the purchase order.

• Define price adjustments at the header level of the contract that you can apply to transactions that use the contract.

  This feature helps you streamline and simplify the entry of discounts and surcharges at the contract line-item and category levels. You can apply a predesignated set of adjustment criteria to each line or category on the contract.

  See PeopleSoft Source to Settle Common Information: Template Price Adjustments Page.