Prerequisites to Creating Procurement Contracts

Before you create a procurement contract, you need to ensure that several basic setup steps have been completed.

To prepare to create procurement contracts:

• Establish suppliers.

  To define contracts, you must first establish suppliers for the contracts.

  See Entering Supplier Identifying Information.

• Define items and item-supplier relationships.

  For a fixed-item contract, you must first set up the items for the contract and establish item-supplier relationships.

  The item setup is not required when you are defining voucher or order contracts for ad hoc items (description only).

  See PeopleSoft Purchasing: Purchasing Attributes -Item Supplier (ITM_VENDOR)Page.

• Setup manufacturer IDs, manufacturer item IDs, and universal item identifiers.

  See Defining Manufacturer IDs, PeopleSoft Managing Items: Defining Items at the SetID Level, and PeopleSoft Managing Items: Using Universal Item Identifiers.

• Set up contract controls, such as auto–numbering, reason codes, and default currency information.

  See Understanding Procurement Options.

• Define contract styles.

  See Defining Contract Style.

• Set up contract domains (regions) and ship to locations.

  See Defining Ship To Locations.

• Define contract version control, change reasons, and change tracking parameters.

  See Defining Contract and Vendor Rebate Control Parameters.

• Define contract intervals and detail counters for contract releases.

  These settings determine the schedule for releasing contracts.

  See Defining Contract Intervals for Contract Releases.

• Define installation options that include the maximum number of rows to retrieve for contracts.

  This feature is used in conjunction with advanced contract item searches. When the maximum number of contract rows is exceeded, the system automatically provides an item search link so that you can limit the returned results.

  See Application Fundamentals: Setting Up Application-Specific Installation Options.

• Define user preferences that enable users to, for example, approve or cancel contracts, place contracts on hold, and establish user display options.

  Among the user preferences you can define are default contract statuses and authorized actions for a user and you can define how the system initially displays the collapsible areas on the Contract page.