Create Supplier Contracts from Negotiation Award

As a contract administrator, set up the buy intent for contract type enterprise or agreement and contract terms templates structured or simplified.

As a category manager, while creating the negotiation, create a draft base Enterprise Contracts Management contract to hold the contract terms of the negotiation.

You create a base contract to negotiate terms with all suppliers. The base contract doesn't contain any primary parties. Suppliers can review the negotiation contract terms as part of the response process, share their acceptance with the contract terms or suppliers can share their concerns by redlining the contract terms document.

To create a base contract, in the Contract Terms train stop, click Create Contract. Select the contract type based on your requirement. You can either create an enterprise class contract or an agreement class contract. Use this decision matrix to choose the contract type that you need to select, based on your requirement:

For Contract Type of Class	Allow Lines	Don't Allow Lines
Enterprise	Create standard purchase orders through the supplier contract fulfillment process.	Create a master contract (a contract that holds only contract terms with no lines) and refer it in the purchase agreements created from sourcing award.
Agreement	Create blanket purchase agreements through supplier contract fulfillment process.	Create contract purchase agreements through supplier contract fulfillment process.

You can either choose a structured terms template or a simplified terms template for the base contract. If you want to author contract terms later or if you want to choose attached document as contract source, you can leave the contract terms template field blank.

When supplier contract is created from the base contract, all the contract clause variable values from the base contract are copied to the supplier contract.

In the Oracle Fusion Cloud Procurement Using Procurement Contracts guide, see the Contract Source Selection section for information on selecting a contract source.

Do the rest of the negotiation and publish it.

Invited suppliers will receive the negotiation invitation along with the base contract terms, which includes clauses and deliverables. Suppliers can download the contract terms for evaluation.

As part of the bid submission, to gather suppliers’ acceptance on whether they agree with the base contract terms or not, the category manager must create a requirement to capture the suppliers’ acceptance with the contract terms or their concerns with the contract terms. Suppliers can share their concerns by creating and uploading a redlined contract terms document as an attachment to the bid.

As part of the collaboration team, evaluate the redlined contract terms. For any common changes that are applicable to the entire supplier base, drill down to the base contract of the negotiation and update the contract terms. You can initiate an online discussion using messages with suppliers to further negotiate the contract terms. Suppliers can send or receive the updated contract terms as an attachment to the online message.

After you close the negotiation, evaluate the negotiation, shortlist the bids and start the award process.

If the contract terms agreed upon with one of the shortlisted supplier are different from the base contract terms, create a contract for the corresponding bid.

To create the supplier contract for the shortlisted or awarded suppliers, in the Award Negotiation page, select the supplier bid and click Create Contract.

A new draft supplier contract is created for that bid by duplicating the negotiation's base contract and stamped with the supplier as the primary party.

Go to the supplier contract and update the agreed upon terms with the supplier.

To add the awarded lines to the supplier contract, in the Analyze Negotiation page, select the awarded bid and click Add Awarded Lines to Contract.

Even after the award is completed or even after the negotiation is completed, you can create supplier contracts and add awarded lines to them.

Upon award completion, based on your requirement, you can either create purchasing documents as part of supplier contract line fulfillment flow or you can create directly from sourcing award or you can do both for a given negotiation.