Contract Validation

Contract validation performs a series of checks that determine if your contract can be submitted for approval. You must correct all errors. Fixing the warnings is optional.

You can validate your contract at any time during contract authoring by selecting the Validate Contract action. The same validation is performed automatically when you submit the contract for approval.

Required Information

The application checks the contract for the following:

The selected contract type and line type must be active.
A contract must have at least one of its contacts as its owner. The owner role is defined in the contract type set up.
The contract must have at least one contract line if the contract types allows contract lines.

Date Validations

Date validations include the following checks:

The contract must have a start date.
Line start and end dates must be within the header start and end date.
Line due date must be equal to or later than the line start date, and must be equal to or earlier than the line end date.

Validations for Supplier Contracts

Validations for supplier contracts include:

The purchasing category must be valid.
For a supplier contract, the supplier site must be valid and active.
If line type is Item, Item must be valid for the purchase category.
Payment terms, freight terms, FOB, and ship-to-location must be valid.
Supplier site must be valid for Supplier.
The selected carrier must be active and valid for ship-to-organization.

Note: You must only add a supplier or customer to a contract that's created before the start date of the contract. Adding a supplier or customer that's created after a contract start date may cause an error.

Validations for Customer Contracts

Validations for customer contracts include:

Ship-to site must be entered if the contract is billable.
Days to expiration must be less than the contract duration.
At least one contact must be entered for the contract expiration notification.
If the contract requires expiration information, then you must enter a contract end date and a contact for the expiration notification.
Ship-to account must be active for the line.
Supplier at the line level must be one of the suppliers entered as a party for the contract.
The sum of all sales credits must equal 100.

Validation of Parties, Accounts, and Sites

Validations of parties, accounts, and sites include checks such as:

A contract must have at least two parties: a buyer, and a seller.
For a contract that is enabled for electronic signature, all contacts marked as signers must have a valid e-mail address.
Billing control effective dates on a contract header must be within contract effective dates.
Billing control effective dates on a contract line must be within contract line effective dates.
Billing control start date for a contract or its line must be earlier than its end date.
For project billing, the contract must have a bill plan and a revenue plan. Select a bill plan and a revenue plan for each contract line that has a contract line type source of project-based.
For project billing, when a contract line is associated with a percent complete or percent spent bill or revenue plan, and the calculation level is associated project, a funded amount must exist for at least one active associated project.
For project billing, when a contract line is associated with a rate based, percent spent, or percent complete bill plan or revenue plan, at least one active associated project must exist for that contract line.
For project billing, when a billing resource is specified for an active billing control, the billing resource must be active in the resource breakdown structure.
For project billing, the bill-to contact must be currently valid for the bill-to account.
For project billing, the bill-to account, bill-to site, and bill-to contact values must be entered.
For project billing, when revenue is fixed price, invoicing must be in the contract currency.
For project billing, a contribution percentage between zero and 100 must be entered.
For project billing, a contract organization must be entered.
For interproject billing, the associated project must be different to the receiver project.
Billing control hard limit amount must be between 0 and the contract amount or the contract line amount, depending on whether the billing control is at the header or the line level, when the contract type limit type is hard.
The bill plans and revenue plans for contract lines must have valid combinations of invoice and revenue method classifications.