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Adding Supplier Resources to a Contract

You can add supplier resource and pricing information to an existing open contract. However, if you are using contract approvals, once the contract has been approved, you must redraft it in order to add supplier resources. Then, you must re-send the contract for approval.
The contract’s supplier resource information rule controls 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. 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.
If the contract’s information varies on the supplier resources, choose the “information is default values only” setting. The contract’s information is defaulted onto new supplier resources where it can be changed. Changes to the contract’s information are not applied to the supplier resources.
If you have selected to fix supplier resource values, you will not be able to change those values on new supplier resources.
This topic explains how to add supplier resources to an existing contract.

To Add Resources to a Contract

1.
Open the contract.
2.
Select the Resources view and then the Resources tab. This view lists all of the resources currently on the contract.
3.
Click New. The New Contract Supplier Resource dialog appears.
4.
Enter the number of the Resource, or browse to search for the resource.
5.
Select the appropriate Purchase type.
6.
Enter a the supplier’s reference number for this resource in the Product Number box.
7.
On the General tab, Price tab, complete the following information from the supplier:
Setting Name
Description
Product number
The supplier’s reference number for this resource. Every supplier uses a different reference number for the item, and this number must show on the PO so that the supplier will know what item is being ordered.
Ordering Units
The unit of measure (UOM) to use when ordering this item. Although an item can be stocked and issued in one unit of measure, the supplier might require that an order be placed using a different unit of measure.
For example, let’s say that each item is stocked on the shelves individually, but the supplier only sells the item in boxes of 12 units. In this case, the ordering UOM is “box” and the stocking UOM is “each”.
Pricing Units
The units of measure (UOM) used when pricing an order. An item can be ordered in a particular unit of measure (UOM) and priced using an alternate UOM. For example, you might order a resource by the dozen, but the supplier might price them individually (that is, “each”).
Price
Enter the supplier’s price for this resource.
Discount
Enter any applicable percentage discount for this resource. You will only be able to change this information if the Supplier Resource Information rule is set to ‘default’.
Price effective date
Enter the starting date of the effective period for this price. You will only be able to change this information if the Supplier Resource Information rule is set to ‘default’.
Price expiry date
Enter the ending date of the effective period for this price. You will only be able to change this information if the Supplier Resource Information rule is set to ‘default’.
Reference
The reference number the supplier uses to identify this price. Each supplier resource price can have a different reference number that is separate from the supplier’s product number.
8.
Select the Details tab. Complete the following information:
Setting Name
Description
Pack size
The number of whole units, in the ordering unit of measure, that are packaged together. An order quantity must be placed in multiples of the pack size.
For example, let’s say that each item is stocked on the shelves individually, but the supplier only sells the item in boxes of 12 units. In this case, the pack size is 12. You can only order the item in multiples of 12 (12, 24, 36, 48, and so on).
Minimum Order Quantity
The minimum quantity required to place an order with the supplier. The quantity is expressed in the supplier’s unit of measure.
When you create a purchase order line for this item, the system warns you if you are ordering less than the minimum quantity. However, if you add this item as a resource demand on a work order, the system cannot warn you if the quantity is below the minimum order amount.
Lead time
Enter the supplier’s lead time for this resource. You will only be able to change this information if the Supplier Resource Information rule is set to ‘default’.
Manufacturer
The name of the manufacturer for this supplier resource and price. If the manufacturer’s record is already associated with this supplier and resource, select the name of the manufacturer from the list.
If the manufacturer is not in the list, right-click the box and select New. Fill in the manufacturer information for this supplier resource price.
Preferred supplier
Select whether or not this supplier will be the preferred supplier for the resource while this price is in effect. You will only be able to change this information if the Supplier Resource Information rule is set to ‘default’.
9.
Select the Charges tab. This tab lists the default extra charges added to this resource. You will only be able to add extra charges if the Supplier Resource Information rule is set to ‘default’.
10.
To add an extra charge, click New. The Extra Charge dialog appears.
11.
Select the type of charge.
12.
Indicate whether or not the This extra charge must be remitted to the supplier. If the charge is remitted to the supplier, it is included in the amount you pay the supplier for the item.
13.
Select the charge amount or rate of the charge and enter the appropriate value.
Setting Name
Description
Extra Charge is Based on
The type of extra charge:
•
Percent of Value: The extra charge is a percentage of the value of the purchase order line. For example, if the value of the order is $20 and the extra charge is 5% of the value, the system applies an extra charge of $1 to the purchase order line.
•
Fixed Amount: The extra charge is a fixed amount per purchase order line. For example if the fixed amount is $5, the system adds an extra charge of $5 to each purchase order line for this supplier resource and price. (Not available for consignment purchases.)
•
Per-Unit Amount: The extra charge is a fixed amount per unit of the order quantity in the purchase order line. For example, if the fixed amount is $1 per unit and 20 units are ordered, the system adds an extra charge of $20 to the purchase order line.
14.
Click New to select the applicable taxes payable on this extra charge. The Extra Charge Tax dialog appears.
15.
Select the tax name and rate, indicate whether or not the supplier remits the tax, and click OK.
16.
Repeat steps 14 and 15 for each tax payable on the extra charge.
17.
To save the extra charge, click OK. The extra charge appears in the list.
18.
When you are finished entering information for the supplier resource, click OK. The resource is added to the contract.