Creating Agreements

This chapter provides an overview of agreements and discusses how to:

Initiate agreements.
Update agreements.
Share agreements among buyers.

Understanding Agreements

Before the system can process invoices and payments, an agreement must be established and its terms agreed to by both the buyer and the supplier. The buyer administrator initiates the agreement with the supplier, triggering an email to the user, roles, or both, established by the supplier organization at either the agreement or supplier location level, that there is an agreement ready to be reviewed. After the supplier adds specifications and accepts the agreement, the buyer user who initiates the agreement is notified that a final review of that agreement is necessary. The buyer administrator then performs the final review, accepting the terms, finalizing the agreement, and enabling transactions between this buyer and supplier to commence.

Certain eSettlements features reference processing options that are established at the agreement level. They are invoice creation, matching, and default ChartField processing logic.

The following sections discuss:

Agreements in the Buyer Direct Model.
Agreements in the Business Service Provider Model.

Agreements in the Buyer Direct Model

Agreement setup in the Buyer Direct model is very similar to that for the Business Service Provider model, however, there are important exceptions for the Buyer Direct model:

Matching terms for purchase orders are not obtained from the agreement, but from the vendor, if a match control ID exists for the vendor.

Otherwise the matching terms are obtained from the Purchasing business unit for the purchase order.
The system uses the payment terms that are specified on the agreement for electronic invoices and self-service invoices.

Online vouchers that are created in Payables use the payment terms on the vendor profile (maintained in Payables or Purchasing). If there are no payment terms for the vendor, the system obtains the terms according to the Payables default hierarchy.
Cash collection details are not appropriate for the Buyer Direct model and are unavailable for entry.
Users with system administrator role types can update payment terms. In such cases the buyer does not receive email notification of the change in terms.
You must establish a user with a supplier administrator role type before you can register an agreement.
Users with system administrator role types can access both buyer and supplier agreement details.

Agreements in the Business Service Provider Model

You set up agreements in the Business Service Provider model in the same way we discuss in the following sections, but note the following differences from the Buyer Direct model:

Matching terms for purchase orders are obtained from the agreement.
You must establish a user having a supplier administrator role type before you can register an agreement.

See Also

Processing Invoices

Running Matching

Understanding Self-Service Invoice Entry and Management

Initiating Agreements

To initiate an agreement with a supplier, use the Review Agreement Details Inquiry component (EM_AGREE_INQUIRY) and the Agreement component (EM_AGREEMENT).

This section discusses how to:

Enter buyer processing preferences
Define default ChartFields.
Specify buyer notifications

Understanding Agreement Initiation

Agreements are initiated by the user who is associated with the buyer administrator role type, then offered to the supplier for review and approval. Buyers can also nominate notifications at the agreement level. The email notifications for the buyer appear as the default from the notifications that are set up at the setID level for the buyer who is specified on the agreement. Because multiple buyers can share the same agreement, the email notifications appear set up at the setID level, with the setID determined by record group EM_03.

When an agreement is shared and email notifications are overridden at the agreement level, all buyers sharing that agreement then have the same overridden email notifications. If the defaults from the buyer's setID are used at the agreement level, then the notifications for each buyer are determined from the notifications for each particular buyer setup at the buyer setID level.

At the agreement level, each business unit sharing the agreement can set up different email notifications and routings. The information here can be shared by many buyers. This table shows how sharing works:

Buyer	Agreement Record Group EM_01	Notification Record Group EM_03
Buyer 1 (BUY01)	BUY01	BUY01
Buyer 2 (BUY02)	BUY01	BUY01
Buyer 3 (BUY03)	BUY01	BUY03

In this example, buyers 1, 2, and 3 all share the same agreement, which is set up for buyer 1. For email notifications, buyer 1 and buyer 2 use the same email notification that is set up for buyer 1, but buyer 3 has a unique notification setup.

If, at the agreement, the user decides to accept the defaults, then when processing for buyer 1 and buyer 2 the system uses the email types, routings, and remainder days that are specified at the setID level for BUY01 (notification setup). When processing for buyer 3, the system selects the defaults that are established at the email notification setID BUY03. If the user decides to specify notifications at the agreement level for BUY01 then the system selects the new values that are specified at the agreement level (email type, routing, and reminder days) for buyers 1, 2, and 3.

Warning! When an agreement is shared by more than one buyer, if any one of those buyers overrides the default setup, they also override the email notifications for the other buyers that share the agreement. At this point, the sharing of the agreement should be reconsidered.

At the agreement level, you can define the second-highest level of the eSettlements self-service invoice ChartField defaulting logic. The system uses a four-level hierarchy to automatically populate certain self-service invoices (those with no copied purchase order or receiver information) with default ChartField values; from highest to lowest level they are:

Buyer template
Agreement
Requester
Item

In general, the system overrides buyer template, agreement level, and requester values with item level values for account, alternate account, and product ChartFields. All other ChartFields default from the agreement level if specified, and if not specified, the requester level.

See Understanding Self-Service Invoice Entry and Management.

Pages Used to Initiate Agreements

Page Name	Object Name	Navigation	Usage
Review Agreement Details	EM_AGREE_INQRY_ADD	eSettlements, Buyer Information, Review Agreement Details, Add an Agreement	Enter identifying buyer and supplier information to begin agreement creation.
Review Agreement Details - Inquiry	EM_AGREE_INQRY_SEL	eSettlements, Buyer Information, Review Agreement Details, Existing Agreements	View and access existing agreements in various statuses.
Review Agreement Details - Buyer	EM_AGREEMENT_BUYER	eSettlements, Buyer Information, Review Agreement Details, Add an Agreement Enter buyer and supplier information and click Add. eSettlements, Buyer Information, Review Agreement Details, Existing Agreements Click a link in the Supplier column.	Enter basic processing preferences that are to be applied to invoices from the selected supplier and initiate review by the supplier, or view established agreement information.
Default Agreement Chartfields	EM_AGRE_CF_SEC	Click the Define Default Chartfields link on the Review Agreement Details - Buyer page.	Define default ChartField information the system uses to automatically populate self-service invoices. The system uses this information in cases where purchase order or receiver information is not defined for a voucher.
Review Agreement Details - Buyer Notifications	EM_AGR_BUY_NOTIFY	Select the Buyer Notification tab from the Review Agreement Details - Buyer page.	Specify buyer email notifications and routings.
Review Agreement Details - Supplier	EM_AGREEMENT_SELLE	Select the Supplier tab from the Review Agreement Details - Buyer page.	Review supplier data.

Entering Buyer Processing Preferences

Access the Review Agreement Details - Buyer page.

Buyer Processing Options

Requires Matching and Match Rule

Select the check box to require that invoices from this supplier go through the Matching Application Engine process (AP_MATCH) and specify the match rule control to be used.

Note. These two page elements only appear in the Business Service Provider model. In the Buyer Direct model the matching information is defined with either the Purchasing business unit or the vendor.

Standard Vouchers Allowed

Select to enable the supplier to send an invoice without a purchase order, resulting in invoices that do not go through the Matching process. Selecting this check box enables suppliers to submit invoices with or without purchase orders. If you do not select this check box, every invoice must be associated with a purchase order.

Supplier Ref ID (supplier reference ID)

Add any reference for this supplier.

Note. For OAG XML invoices, the supplier provides this value in the PartyID tag. We discuss this correspondence in the Processing Invoices chapter.

Comments

Add any comments regarding this supplier.

Bank Information

Buyer bank information populates by default from the buyer registration. You can specify different bank information here, and doing so does not change the bank information on the buyer registration.

Bank Code and Bank Account

Select a different pay-from bank and bank account. A newly chosen bank overrides the default bank that is established during buyer registration and thus becomes the bank that is used during invoice creation for this supplier.

Note. In order to provide international and domestic EFT payment layouts for the same bank account, you must establish an external bank account for each layout.

Payment Method

Select a method to use when transacting with this supplier. Only the methods that you previously associated with this bank account are available.

Note. The bank information that you specify here populates incoming vouchers. If you require any bank information changes after an agreement is established, you must make them at the agreement level, not at the buyer details level.

Self-Service Invoice Options

Invoice Verification Option	Select which invoices are routed to the requester (or other role that you specify) within the buying organization, for verification of invoice accuracy and completeness: All Invoices: Select to require invoice verification for all invoices, whether or not they are associated with a purchase order. No Invoices: Select to have no verification occur. non-PO Invoices: Select to specify that invoices having at least one invoice line that does not reference a purchase order be subject to invoice verification. Note. If a given invoice has no requester ID (if none is provided), the system takes the value from the buyer email notification setup. You define the default requester (or other role) during the notifications setup at the buyer setID level, and this definition can be overridden at the agreement level. When the requester is selected, a default requester must be nominated. This requester ID is the one that is notified to verify self-service and XML invoices that are created without a requester ID.
Expose ChartFields to Supplier	Select this check box to enable the supplier to access ChartFields during self-service invoice creation. The accessible ChartFields are defined at the buyer details level. This check box appears only if you enable the option at the installation level.
Define Default Chartfields	Click to access the Default Agreement Chartfields page, where you can establish default ChartField information for self-service invoices. See Defining Default ChartFields.
Notify Supplier to Review	Click this button to send email notification to the supplier that the agreement is ready for review. Only after the agreement is updated and accepted by the supplier does the buyer administrator—after receiving email notification —again access the agreement to review the information that the supplier adds. Note. After the agreement is finalized, this button no longer appears.
Accept Agreement	Click this button to accept the supplier's terms and finalize the agreement, and enable processing to commence. The Accept Agreement button appears here only after the supplier reviews the agreement and clicks the Accept Agreement button on the Review Agreement Details - Supplier page. After the agreement is finalized, this button no longer appears.
Cancel Agreement	Click this button to terminate the agreement. Either party can terminate the agreement. This button appears only after the agreement is accepted by both parties.

See Also

Enabling ChartFields

Specifying Buyer Notifications

Defining eSettlements Installation Options

Defining Default ChartFields

Access the Default Agreement Chartfields page.

Establish default ChartField values the system uses to automatically populate self-service invoices when no purchase order or receiver information has been copied into the voucher.

In the four-level ChartField defaulting hierarchy, the system uses these values as the second level. You can edit these values at the invoice level. Buyers can validate the defaulted ChartField values before submitting the invoice to the Voucher Build Application Engine process (AP_VCHRBLD).

Specifying Buyer Notifications

Access the Review Agreement Details - Buyer Notifications page.

Agreement Reference

The Buyer, Supplier, and Location information appears by default from the registration level.

Specify Overrides

Click this button to make changes to the notification types and routings.

Warning! If other buyers share this agreement, any notification selections you override impact those buyers as well.

Restore Defaults

Click this button to revert to the default routings.

Note. At the agreement level, only the host and buyer administrator role types can enable and define routings in the Buyer Direct model. In the Business Service Provider model, only the buyer administrator can enable and define routings.

Notification Types

If you click the Specify Overrides button, enter the appropriate routing information for each notification type in the Enter Routings group boxes.

Note. If a user does not have access to a particular agreement, that user will not receive the email notifications.

See Also

Specifying Buyer Notifications

Updating Agreements

To update an agreement, use the Review Agreement Details component (EM_AGREE_INQUIRY) and the Agreement component (EM_AGREEMENT).

This section discusses how to:

Enter supplier processing preferences
Specify supplier notifications

The supplier administrator reviews and updates the terms of the initiated agreement, specifies preferences, and—for the Business Service Provider model only—establishes payment and discount terms for the buyer.

Note. In the Buyer Direct model, only a user who is assigned the role type of system administrator can specify payment terms; suppliers cannot.

Pages Used to Update Agreements

Page Name	Object Name	Navigation	Usage
Review Agreement Details - Inquiry	EM_AGREE_INQRY_BUY	eSettlements, Supplier Information, Review Agreement Details, Review Agreement Details - Inquiry	View existing agreements.
Review Agreement Details - Supplier	EM_AGREEMENT_SELLE	eSettlements, Supplier Information, Review Agreement Details, Review Agreement Details - Inquiry Click a Buyer link on the Review Agreement Details - Inquiry page.	Review buyer terms and accept agreement.
Review Agreement Details - Supplier Notifications	EM_AGR_SUPP_NOTIFY	Select the Supplier Notifications tab from the Review Agreement Details - Supplier page.	Specify supplier email notifications and routings.
Review Agreement Details - Buyer	EM_AGREEMENT_BUYER	Select the Buyer tab from the Review Agreement Details - Supplier page.	Review buyer data.

Entering Supplier Processing Preferences

Access the Review Agreement Details - Supplier page.

Comments

Customer Ref ID (customer reference ID) and Comments

Enter a reference ID and any comments that are relevant to this buyer or agreement.

Agreement Information

Remit Supplier Used	Select this check box to use an alternate remit to supplier, to which the system transmits invoices for this supplier.
Name and Location	Enter the remit to supplier name and location.

Supplier Payment Terms

If multiple terms exist, you cannot view them all at once. Use the controls in the Supplier Payment Terms group box header to scroll through them.

Note. In the Business Service Provider model, because the system generates email when a user inserts a new effective-dated row or deletes the current row, if you need to change the payment terms on an agreement, you must add a new row with the date that the new terms are to become effective.

Payment Terms	Select terms, such as Due Now, Net 30, or EOM.
Payment Terms effective as of	Enter a date on which the terms become effective.
Add New Payment Terms	Click this button to specify new payment terms and a new date. Note. Payment terms can only be changed by the supplier in the Business Service Provider model, which initiates another agreement cycle requiring the agreement to be reaccepted by both the buyer and supplier. However, in the Buyer Direct model, another agreement cycle is not initiated with a change in payment terms.
Accept Agreement	Click this button to accept the buyer's terms and trigger email notification to the buyer administrator, enabling the buyer to finalize the agreement. This button appears here only after the buyer clicks the Accept Agreement button on the Review Agreement Details - Buyer page. Note. When the supplier clicks this button, the system sends email notification only to the buyer users who initiated the agreement.
Cancel Agreement	Click this button to cancel the agreement and prevent further invoice creation or processing to occur once an agreement is finalized. Clicking this button does not effect invoices that are already in the system, but prevents the creation of new invoices.

Specifying Supplier Notifications

Access the Review Agreement Details - Supplier Notifications page.

Agreement Reference

The Buyer, Supplier, and Location fields populate by default from the supplier location level.

The supplier notifications at the agreement level populate by default from the supplier setID level, or from the supplier location level if they are overridden there.

In addition, only those email notification types that are activated at another level can be overridden at the agreement level. Otherwise, if not previously nominated at another setup level, all fields that are for the given notification type are not available for entry.

The system administrator selects the notification types and roles at the setID level. At the supplier location level and at the agreement level, the system administrator selects the notification types and the supplier administrator selects the roles.

Specify Overrides	Click this button to make changes to the notification types and routings (which populate by default from the supplier location information).
Restore Defaults	Click this button to revert to the default routings.

Notification Types

If you click the Specify Overrides button, enter the appropriate routing information in the Enter Routings group box.

See Also

Specifying Buyer Notifications

Sharing Agreements Among Buyers

You can use agreement sharing in both the Buyer Direct and the Business Service Provider model. If you create a new buyer in either model, agreement sharing and tableset control assignment occur automatically when you create the buyer, through the use of the buyer template where the agreement setID is specified.

When the agreement setID is populated on the buyer template, the system uses that setID for record group EM_01 during buyer registration, and when creating agreement sharing. When the agreement setID on the buyer template is not specified, the system populates record group EM_01 with a value that is equal to the buyer that is being created. You can also create sharing among buyers after buyer registration by modifying the EM_01 setID for the buyers.

To access record groups, select PeopleTools, Utilities, Administration, TableSet Control.

If you enable an existing Payables business unit in the Buyer Direct model, you can share agreements among multiple buyers by using tableset sharing.

To share an agreement among multiple buyers after enabling an existing Payables business unit:

Create an agreement with a supplier for one of the buyers.
Access the TableSet Control component (SET_CNTRL_TABLE1) for each of the other buyers (enter the buyer business unit in the Set Control Value field on the search page).
On the TableSet Control - Record Group page, scroll to record group EM_01 and enter the buyer ID for which you create the agreement in the SetID field.
Save and repeat for each buyer sharing the agreement.

See Also

PeopleTools PeopleBook: PeopleSoft Application Designer

Establishing a Buyer Template