Supplier Contracts from Negotiation Award

You can create a base contract to negotiate terms with all suppliers. You can create a base contract during a negotiation from the Contracts train stop. 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.

Supplier Contracts

After the negotiation is closed, and there's a consensus between you and the supplier over the redlined contract terms, you can create a contract for each supplier you want to award based on responses. The base contract is copied along with other information from the supplier's response to create the supplier contract. You can add the awarded lines to the supplier's contract.

Enterprise Contract Management supports full contract life cycle, ability to negotiate the contract terms with suppliers, download and upload contract terms, compare redlined terms with original terms, and so on. You can leverage this contract functionality in Oracle Sourcing and easily update the contract terms for each supplier during the negotiation process.

View contracts associated to the responses along with purchasing documents and drill down to the associated contracts. You can now use new contract related approval attributes to route negotiation and award approvals based on created contracts.

On the supplier contract, you can see and drill down to the source negotiation and responses from which the contract was created. You can view details such as source application and source document number and if you have passed the awarded lines then you can view the line number.

There are two types of supplier contracts, you can either create an enterprise class contract with or without lines, or an agreement class contract with or without lines. This decision matrix will assist you to choose the contract type 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. After creating the base contract, you can edit the contract and change the contract source to attached document. In the Using Procurement Contracts guide, see the Contract Source Selection section for information on selecting a contract source.

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. Contract clause variable values are also copied to the new amendment or the new round of the negotiation. But if you want to embed contract terms in the purchasing documents created from the negotiation award, don't opt in to this update 19D feature, Create Supplier Contracts from Negotiation Award. You can view the table of contents for the contract terms within the negotiation documents and response documents.