Contract

The number of the contract. APM automatically enters the next consecutive number, but you can change this information if necessary. If this box is left blank or the number is not unique, an error message will appear.

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Title

The name or short description of this item. You can enter up to 250 characters.

Buyer

Select the name of the employee who is the buyer responsible for this contract. When this employee views the My Desk view, this contract will appear in their list of contracts.

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Contract type

Select the appropriate contract type from the list. This will allow you to filter or sort lists of contracts by classification. Contract classifications are defined at the site level.

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Change value

Enter the estimated value for the contract. This amount is used by the system to determine an appropriate approval route (if contract approvals are used). If you are redrafting the contract, enter the amount that the contract will increase over the current total contract amount. The system adds the Change value and the previously Approved value and displays the result in the Total estimated value box. When you send the contract to be approved again, only the changed amount will need to be approved.

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Total estimated value

If you are redrafting the contract, enter the amount that the contract will increase over the current total contract amount. The system adds the Change value and the previously Approved value and displays the result in the Total estimated value box. When you send the contract to be approved again, only the changed amount will need to be approved.

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Supplier

The name of the supplier this contract is with. You can enter the supplier name, or browse to search for the supplier.

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Contact

Select the name of the supplier’s contact person for this contract.

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Number

The telephone number for this person. You can enter up to 15 characters. If a telephone number mask has been created for the appropriate country, you do not have to enter any formatting characters such as brackets or dashes. APM will automatically format the number correctly.

Extension

The extension for this phone number. You can enter up to 6 characters.

Reference number

Enter the supplier’s reference number for this contract.

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Authorized by

Select the supplier contact who authorized this contract on behalf of the supplier.

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Starts on

Enter the starting date for the period during which this contract is in effect. The expiry date can be no earlier than this date.

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Ends on

Enter the ending date for the period during which this contract is in effect. The expiry date can be no earlier than the effective date. Once the contract has expired, the prices for the resources on the contract will no longer be valid. Note that the contract’s expiry date can be longer than the expiry date for the pricing agreement.

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Supplier resource purchase order policy

The contract’s prices can be used as estimates only, or as the fixed prices for each resource. This rule controls the price and extra charge information on a purchase order. • Estimate only: The prices will be entered as the default price on purchase demands or purchase order lines that reference a contracted supplier resource. The buyer will be able to change the default price. • Fixed: Prices that are fixed cannot normally be changed on purchase demands or purchase order lines that reference one of the contract’s resource prices. The price can only be changed in exceptional cases.

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Terms and conditions policy

The contract’s terms and conditions (FOB point, freight terms, shipping method, payment terms) can be used as guidelines only or as fixed values: • Guidelines only: The terms and conditions set on the contract will be entered as the default values on purchase demands or purchase order lines that reference a contracted supplier resource. The buyer will be able to change the default values. • Fixed: Terms and conditions that are fixed cannot normally be changed on purchase demands or purchase order lines that reference a contracted supplier resource. The values can only be changed in exceptional cases.

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FOB point

The free on board (FOB) point agreed to with this supplier. Select the appropriate FOB point from the list.

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Freight term

The freight term agreed to with this supplier. Select the appropriate freight term from the list.

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Shipping mode

The shipping mode agreed to with this supplier. Select the appropriate shipping mode from the list.

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Payment terms

The payment terms agreed to with this supplier. Select the appropriate payment terms from the list.

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Used for on-site contractor time reporting

Select this option when the contract is for on-site contractors. When this option is selected, only supplier resources using the purchase type ‘on-site contractor’ can be added to the contract.

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Invoicing rule

The rule for reconciling contractor timecards to the supplier’s invoice: • Invoice lines are matched to individual timecards: select this option to reconcile invoice lines within APM. A purchase liability will be created for each of the on-site contractor timecards. • Invoice lines are not matched to individual timecards: select this option to reconcile the invoice lines manually. You might want to do this if matching invoice lines to individual timecards is too rigid of a process.

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Supplier resource information

Select whether the contract’s supplier resource values can be changed on supplier resource records or not. These values are: pricing agreement effective and expiration dates, discount percentage, extra charges, primary supplier setting, and the replenishment rule for the resource. • Fixed: If the values are fixed, they cannot be changed on the supplier resource. Any changes to the contract’s values are automatically applied to the supplier resources. • Defaults only: If the contract’s information will vary on the supplier resources, choose the ‘information is default values only’ setting. The contract's information will be defaulted onto new supplier resources where it can be changed. Changes to the contract’s information are not applied to the supplier resources.

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Replenishment policy

The contract’s replenishment rule allows you to control whether or not resources replenished with a price from the contract require a manual review before the purchase order is generated. • Review is required: If you select this option, the replenishment process adds the resources to the replenishment requisition. The purchase order is not created until a buyer has reviewed the requisition and selects the generate purchase orders option. • Review is not required: The replenishment process adds the resources to the replenishment requisition as usual. However, the purchase order is generated immediately. The buyer does not have to review these resources. Note: The contract’s replenishment rule setting does not circumvent the existing rules associated with blanket orders. If an open blanket order exists for the contract and resource being replenished, the replenishment process generates a blanket order release. A replenishment requisition review is not required in this case

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Preferred Supplier

Select whether the supplier resource prices defined for the contract are the resource’s preferred supplier information or not.

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Pricing agreement starts

Enter the date that the current pricing agreement for this contract starts. This may be the same as the starting date for the contract, or it may be a different date.

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Pricing agreement ends

Enter the date that the current pricing agreement for this contract ends. This can be the same as the ending date for the contract or an earlier date. This date cannot be earlier than the date on which the agreement starts. Each contract can have multiple pricing agreements.

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Lead time

Enter the supplier’s lead time for this contract.

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Discount

Enter the percentage discount for the prices on this contract. This discount will be included in the loaded cost for each purchase order line created from the contract.

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Discount Applied

Select when the discount should be applied: when the resource is ordered (i.e. on the purchase order line), or when the resource is invoiced (i.e. on the invoice line).

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Contract notification

You can have the system notify employees that a contract or pricing agreement is about to expire by email, with favorites, or using both methods. In order for the email method to work, the employees must have a valid email address entered into their employee record. • Notification is not required: The system will not notify any employees. • Notify the employees below via email: The system will send an email to the selected employees. • Notify the employees below by adding the contract to the employees’ favorites: The system will add the contract to the list of favorites for each selected employee. Employees can view their favorites from the site’s Favorites view. • Notify the employees below with both an email and by adding the contract to their favorites: The system will notify the employees using both methods described above.

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Expiry notification lead time

Enter the amount of time before the contract’s or pricing agreement’s expiration date that the system should notify the selected employees.

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Expiry notification date

The date on which the system will send expiry notification message(s) for this contract and/or pricing agreement.

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Expiration notification has been issued

This box is checked if the system has already sent out expiry notification messages.

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Create renewal RFQ

Select this option to have the system create a renewal RFQ for the contract’s resources when the expiry notification is issued.

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Description

The description of the item. You can use this box to include any additional details.