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Editing a Contract That Was Created From an RFQ

You can create a contract when you award a bid-sheet RFQ to the selected supplier(s). You can either create new contracts for the suppliers or add the resources to an existing contract. See Awarding RFQs.

Once you have awarded the bid, you should open each contract and ensure that the contract’s properties are correct. This topic explains how to open and review the properties for a contract created from an RFQ.

Note: The My Desk view only displays the tabs described below if you are set up as a buyer on your employee record and the Purchasing Desk option is selected on the My Desk Settings tab.

To Review a Contract’s Properties

1.	From the site, select the Contracts view.

Tip: You can also view contracts from the My Desk view, Contracts tab. This tab lists all contracts for which you are the listed buyer.

2.	Open the contract that you want to review. The Contract window appears.

3.	On the Properties view, General tab, review the following information:

Setting Name

Description

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.

Title

The title of the contract. Enter a descriptive title up to 100 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.

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.

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.

Contact

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

Reference number

Enter the supplier’s reference number for this contract.

Authorized by

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

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.

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.

4.	Select the Purchasing Policies tab. Set the following rules for the contract:

Setting Name

Description

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.

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.

5.	Review the listed terms and conditions for the contract:

Setting Name

Description

FOB point

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

Freight term

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

Shipping mode

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

Payment terms

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

6.	Select the Price Policies tab. Set the following rules for the contract:

Setting Name

Description

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.

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

Preferred Supplier

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

7.	Review the pricing agreement information for the contract:

Setting Name

Description

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.

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.

Lead time

Enter the supplier’s lead time for this contract.

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.

8.	Select the Description tab. On this tab you can enter a detailed description of this contract.

9.	Now that you have filled in the contract properties, you can:

•	Adding Extra Charges to a Contract

•	Adding Supplier Resources to a Contract

•	Setting Expiry Notification Rules on a Contract

•	Adding Notes to a Contract