Creating Service Contracts

This topic discusses how to create service contracts.

Pages Used to Create Service Contracts

Page Name	Definition Name	Usage
Contracts Page	CNTRCT_HDR	Use to create service contracts.
Maintain Details - Details for Line Page	CNTRCT_PRC_UOM_SEC	Enter rates for service contracts. Contracts Page

Contracts Page

Use the Contract page (CNTRCT_HDR) to use to create service contracts.

Navigation:

• Services Procurement, and then Requisition Fulfillment, and then Maintain Contracts

• Procurement Contracts, and then Add/Update Contracts

• Supplier Contracts, and then Create Contracts and Documents, and then Contract Entry

Note:

You must enable service contracts on the Installation Options - Services Procurement page to add service contracts.

See Application Fundamentals: Services Procurement Installation Options Page.

To create a service contract:

1. Create a new contract.

   You can select General Contract,Purchase Order, or Release to Single PO Only types to use for purchase orders. For more information about contract types, see the PeopleSoft Source to Settle documentation

   See PeopleSoft Source to Settle Common Information: Contract Process Options.

2. Select Role as the type.

3. Enter the resource-based project role as the type ID.

4. Use the Maintain Details - Details for Line page (CNTRCT_PRC_UOM_SEC) to enter rates for service contracts.

   Navigation

   Click the Line Details button on the Contract page.

5. Add the negotiated rate for the supplier location in the Base Price field.

6. Approve the contract by changing the contract status to Approved.

Using Service Contracts in Bidding

To check for contract rates on bids:

1. Enter and source a requisition.

   Service coordinators have visibility into those suppliers who have contracts.

2. Suppliers bid on the requisition.

3. If the supplier, role, unit of measure, and location match the contract, the system prevents the service provider contact from submitting a rate greater than the contract rate.

Using Service Contracts with Work Orders

To check for contract rates with work orders:

1. Create a work order.

2. Once the work order is approved, create a purchase order.

If the supplier, role, currency, and location match the contract, the system uses the contract rate if it is less than the work order rate. The system overrides the work order rate with the contract rate when the work order is released.

For multi-resource services, the link to purchase orders is at the parent, multi-resource service level; however, contract rates will be enforced for the lower-level individual child service bids and work orders.

Note:

Contracts are verified during the work order creation process as well as the sourcing process.