Agreement Use

For each agreement, you can define the verification requirement, whether the agreement is compliant with the terms of the contract, as well as when and who to notify when a compliance date is approaching or has passed. Additionally, agreements might have one or many clauses to which they are associated. When you specify agreement codes on a contract or when a PeopleSoft Strategic Sourcing event is awarded and posted to a contract, the system provides the agreement information to the contract.

PeopleSoft Strategic Sourcing supports the mapping of bid factors to one or more agreements and the passing of selected negotiated terms into the awarded contract as agreements. If a sourcing event is awarded to a contract and a bid factor on the event has one or more agreements with which it is associated, the system adds those mapped agreements to the awarded contract. If, however, the system does not map agreements to a bid factor and you want to carry the negotiated terms into the contract, you can create an ad hoc agreement for the contract using the bid factor information and responses. You can also manually add a predefined agreement to the contract. In all cases, you can define additional information that relates to the agreements for that particular contract or delete information that is not pertinent to the agreement.

After a contract is approved, you can record the result of the contract activities and the agreement verification information, and indicate whether the agreement is compliant. After tracking the compliance of an agreement, you can review the activity and status, and manually release adjustment vouchers for any bonuses or penalties incurred.

Note:

Sourcing events can be awarded to procurement contracts or purchase orders. Agreements are part of procurement contracts and not purchase orders. Therefore, if a sourcing event is awarded to a purchase order, the system ignores agreements of the event.