In this demonstration, you will learn how to create a contract purchase agreement with a supplier. This agreement will identify business units that will buy off the document and have control settings to enable automated buying. You will also see how to add alerts to track events of interest related to the agreement.
Steps:
Navigate to the Purchasing Overview page and click the Create Agreement icon to launch the document creation flow. You could also select Create from the Actions menu.
Step 1In the Create Agreement window that appears select the document style that is associated with a contract agreement.
Here we select Contract Purchase Agreement.
Step 2The procurement business unit (BU) is responsible for administering and managing this contract purchase agreement. Here we selected Vision Operations as the procurement business unit.
Now select the supplier, Advanced Network Devices.
Step 3Select the FRESNO supplier site for this agreement.
Click the Create button.
Step 4A draft contract purchase agreement is created. The start and end dates are used to specify the period that the document is in effect.
In this example, the dates entered indicate that the document is effective from 06/01/2011 to 06/01/2013.
Step 5The agreement amount can be used to both track and control release activity.
Enter the desired information into the Agreement Amount field. Enter "15,000.00".
Step 6You can also specify the Minimum Release Amount for an agreement. Here we will specify "1,000.00".
Step 7Select the Payment Terms and any other terms or conditions that apply to this agreement.
Step 8We have completed all the required entries and a few important others on the Main tab.
Click the Controls tab link.
Step 9Note the defaulted requisitioning business unit.
You can add more business units whose requisitions for products and services would be sourced from this supplier using the terms of this document.
Step 10The order locally checkbox enables a scenario where the requisitioning business unit outsources only the business processes related to negotiating and administering the agreement with the supplier, but still owns the business processes related to creating and administering its own purchase orders for commodities it is buying off the agreement.
If unchecked, the client requisitioning business unit outsources all of these business processes.
You can use the order locally checkbox to configure what business processes the requisitioning business unit will outsource.
Step 11For each requisitioning business unit using this contract purchase agreement, you can specify the supplier's purchasing site to which purchase orders will be sent.
This example uses the purchasing site Fresno.
Step 12These are the order automation controls:
To allow orders to be automatically generated from requisitions sourced to this contract purchase agreement check the first control.
The second control enables the orders automatically created to then be submitted for approval.
Check Automatically generate orders and Automatically submit for approval to enable automated buying.
Step 13A notification control can remind you of agreements nearing expiration or to track and monitor release activity.
Click the Add Row icon or select Add Row from the Actions menu.
Step 14Here we create a notification control with the Condition of Expiration.
Select Expiration.
Step 15Enter the desired information into the Reminder Days field. Enter
We have completed the Main and Controls information for this agreement. Now, you can submit the document for approval.
Click the Submit button.
Step 17The new agreement was submitted for approval.
This concludes this demonstration of creating a contract purchase agreement.