Defining Contract Agreements

This chapter provides an overview of contract agreements, lists common elements, and discusses how to:

Predefine agreements.
Assign agreements to purchasing contracts.

Understanding Contract Agreements

This section discusses:

Contract agreements and contract compliance.
Agreement use.

Contract Agreements and Contract Compliance

An agreement is a negotiated set of conditions in a contract. The agreement specifically spells out the conditions and terms that apply to the contract. You use the PeopleSoft Supplier Contract Management system to monitor and validate agreements. Agreements are assigned through PeopleSoft Strategic Sourcing bid factors and Purchasing contract maintenance. This formal tracking process makes it possible for you to ensure that a supplier is in compliance against the agreements in a contract. Agreements are also known as service level agreements (SLAs) and can be created for specific items in a contract (line agreement) or for a contract in general (header agreement).

Often, there are contract terms that reference the contract that you cannot measure by data that is captured on traditional purchase order, receipt, and voucher transactions. These are considered nontransactional agreements. An example might be that work can only be performed during daylight hours or that site grading must meet certain standards. Within the contract management system, a more generic structure exists for measuring milestones and compliance factors in nontransactional agreements. This makes it more practical to monitor and track the performance of the supplier against the contract.

An agreement can contain a list of interested parties and a target date for notifying the parties concerning the contract header or line agreement. You can set up notifications for completion, change of status, the passing of a target date, or reminder days. Notifications can be to supplier contacts, internal users, or both

Agreements can also have clauses assigned to them. After you create agreements, you use the document authoring system to manage any documents that might have been created in support of the agreement. As a part of agreement monitoring, the system manages step verification requirements and responsible parties for monitoring the agreements. The system notifies you using email when an action, such as a scheduled performance review, is needed.

In addition, you can specify that related files need to be created and attached to the contract record. For example, a contract might state that to receive final payment, the supplier must certify that they have returned all company-furnished equipment and intellectual property. You can set up that agreement clause to require the system to attach a certification file to the contract and store it in the system. This not only helps maintain compliance with the contract but also can help uncover cost savings that might not have otherwise been realized.

Contract compliance is divided into two parts. The first is described in this chapter and involves predefining agreements and assigning agreements to purchasing contracts. The second part is monitoring and analyzing compliance against agreements. That part is discussed in the next chapter.

See Also

Managing Contract Agreements

Agreement Use

For each agreement, you can define the verification requirement, whether the agreement is compliant with the terms of the contract, as well as when and whom to notify when a compliance date is approaching or has passed. Additionally, agreements might have one or many clauses to which they are associated. When you specify agreement codes on a contract or when a PeopleSoft Strategic Sourcing event is awarded and posted to a contract, the system defaults the agreement information into the contract.

PeopleSoft Strategic Sourcing supports the mapping of bid factors to one or more agreements and the passing of selected negotiated terms into the awarded contract as agreements. If a sourcing event is awarded to a contract and a bid factor on the event has one or more agreements with which it is associated, the system adds those mapped agreements to the awarded contract. If however, the system does not map agreements to a bid factor and you want to carry the negotiated terms into the contract, you can create an ad hoc agreement for the contract, using the bid factor information and responses. You can also manually add a predefined agreement to the contract. In all cases, you can define any additional information that relates to the agreements for that particular contract or delete any information that is not pertinent to the agreement.

After the contract is approved, you can record the result of the contract activities and the agreement verification information and finally indicate whether the agreement is compliant. After tracking the agreement's compliance, you can review the activity and status and manually release adjustment vouchers for any bonuses or penalties incurred.

Common Elements Used in This Section

Clause Assignments	Click to access the Assign Agreement Clauses page where you can select a clause for this agreement. See Assigning Clauses to Agreements.
Financial Implication	Enter a statement that relates to the financial implication if an agreement is compliant or not compliant. The statement can describe whether a bonus is paid or a penalty assessed if the agreement is met or not met. The system displays the financial implication on the contract if the agreement is selected. The actual bonus payment or collection for the penalty is a manual process.
Include In Contract Document	Select to include this agreement and its associated clauses on the purchasing contract when you dispatch the contract to the vendor. You could set up the agreement so that it serves only as an internal reminder to collect certain documentation or to perform steps prior to the completion of the contract. In these cases, the information should not be sent to the supplier or used in the wording of the contract document.
Notification Comments	Enter up to 254 characters as a description of the agreement when the system sends worklist or email notifications.
Workflow Assignments	Click to access the Agreement Notification page where you can assign the criteria by which the system sends notifications. Notifications can be sent for an agreement, verification steps, or both. See Assigning Workflow Notifications for Agreements and Steps.

Predefining Agreements

This section discusses how to:

Set up basic agreement information.
Define agreement verification steps.
Assign clauses to agreements.
Assign workflow notifications for agreements and steps.
Process agreement workflow notifications.

Pages Used to Predefine Agreements

Page Name	Object Name	Navigation	Usage
Contract Agreement Definition	CS_AGREE_HDR	Supplier Contracts, Monitor and Update Agreements, Setup Agreements, Contract Agreement	Set up basic agreement information for contract agreements.
Assign Agreement Clauses	CS_AGREE_CLAUSE	Click the Clause Assignments link on the Contract Agreement Definition page.	Assign clauses to agreements.
Agreement Notification	CS_AGREE_WF	Click the Workflow Assignments link on the Contract Agreement Definition page.	Assign workflow notifications for agreements and steps.
Process Notifications	CS_RUN_CNTL_WF	Supplier Contracts, Monitor and Update Agreements, Setup Agreements, Workflow Notifications	Processing agreement workflow notifications.

Setting Up Basic Agreement Information

Access the Contract Agreement Definition page.

Use this page to predefine agreements. After defining the agreement, you can use the agreement code to provide default information from this agreement into a new contract agreement. Agreement codes are defined by setID. SetID records are the same set control group as the PeopleSoft Supplier Contract Management contract set control group.

Agreement Code	Displays the identifier for the agreement that you are adding or maintaining. Agreement codes are defined by setID.
Effective Date	Select the date on which the agreement is to become effective. The default value is today's date. This date controls when you can use the agreement and change the value.
Status	Select the state of the agreement. If you select Active, the agreement is available for immediate use with contracts. If you select Inactive, you can create the agreement and define its data, but it is not available for use.
Result Type	Select a value that indicates how you are measuring the results of the agreement. You can leave the field blank to indicate the value is not an applicable value. The result type you select determines other page elements and system behavior when you assign this predefined agreement to a contract. Field values include: Date: Uses a calendar date as the type of result. You typically use this result type when an agreement is dependent on a calendar date. For example, if a function must be completed within 30 days of the start of the contract, you can track the actual completion of the function by entering a date for the results. Monetary: Use this type when there is monetary value associated with the agreement. For example, if the supplier must provide you with the cost of an extended warranty, you would use a Monetary result type. None: Use when there are no compliance requirements. You use this option if you want to track steps or milestones without designating compliance or if you want to include certain clauses in the document. Numeric: Select to use figures, such as the number of days in which a supplier must respond to a service call to measure the agreement. Text: Select to use text if verification of the agreement will be in the form of free-form text. This might include observations by an on-site inspector or comments by the contract administrator. Yes/No: Select to use a yes or no indicator to specify whether the agreement was met.
Default Target Date	Select a method for defining the default target date. The system uses the value defined here to calculate a due date for the agreement when the agreement is specified on a contract. After you add the date, changes to the agreement’s default target date will not change the contract’s target date on any contract where this agreement code is specified. Using the target date, you can work with different requirements when you need to verify agreement results. For example, an agreement might relate to conditions that must be met before you can execute the contract. Methods include: Contract End Date: Select to use the end date that is defined for the contract as the default target date. If you select this value, the system provides zero as the default value in the Number of Days field and disables the field. Contract End Date + N days: Select to use the contract end date plus the number of days that you enter in the Number of Days field. For example, if you enter 10 in the field, the verification of the agreement is due ten days after the contract end date. Contract End Date – N days: Select to use the contract end date, minus the number of days that you enter in the Number of Days field. This action makes the verification agreement due before the contract end date. Contract Start Date: Select to use the start date that you defined for the contract as the default target date. If you select this value, the system provides zero as the default value in the Number of Days field. Contract Start Date + N days: Select to use the contract start date plus a specified number of days after that date to establish the due date for agreement verification. Contract Start Date – N days: Select to use a specified number of days before the contract start date as the due date for agreement verification.
Number of Days	Enter the number of days by which you want to offset the default target date. For example, if you select Contract Start Date + N days in the Default Contract Date field and you want the default contract date to be seven days after the contract start date, enter 7 in the Number of Days field.
Description	Enter an extended description of the agreement. This is a required field.

Defining Agreement Verification Steps

Access the Contract Agreement Definition page.

Use the Verification Steps grid on the Contract Agreement Definition page to define the verification steps for this agreement.

Step	Displays the system-assigned step that defines the order in which verification is completed. The system begins the sequence numbering with 10, but you can change the sequence. Consider leaving gaps between the step numbers in case you want to insert additional steps at a later date. Verification steps define the criteria necessary to fulfill the agreement. When you add data to any of the following fields, the system assumes you are adding verification steps to the agreement and certain fields on the page then become required. If you do not add data to the step, the system assumes there are no verification steps. Verification steps are automatically added to a contract when you specify the agreement on the contract. You can delete steps without affecting existing contracts. You can also delete steps on an existing contract without affecting the predefined agreement.
Description	Enter a description of the verification step. This might be a document or inspections that are required to complete the step. If you add a verification step to the agreement, this field is required.
Verification Step Owner	Select a user who will be responsible for this agreement verification step. You can also enter an owner's name. The owner does not have to be associated to a user ID. When you select this agreement to use with a contract, the system populates the verification owner information along with due date information for the contract agreement.
Verification Method	Select the method by which you want to verify this step. The method defines how a verification owner indicates that a verification step has been completed. This field is required if you are adding steps to the agreement. Verification methods include: Attaching Supporting Documents: Select to indicate that the verification of this agreement step is accomplished by posting supporting documentation. The verification owner can attach supporting materials by using the Update Agreement Statuses page. Comments: Select to indicate that the verification can be made by entering text or comments. Date/Time Stamp: Select to indicate that a date and time stamp will be provided when the step has been completed. Notify Only: Select to indicate that action is not required to signify the step is completed. If you assign a workflow notification to the step, selected roles can be notified when the step’s due date is approaching or has passed. You can use this method to send periodic informational notifications or reminders to various interested parties. On Line Verification with Yes/No: Select to indicate that the verification owner can update the verification step online using a yes or no response.

Comments

Select the Comments tab.

Use this page to enter comments about the verification step to include the email notification that is sent to the approver, collaborator, or reviewer. You can enter up to 254 characters. You can define separate comments for each verification step.

Assigning Clauses to Agreements

Access the Assign Agreement Clauses page.

Use this page to assign one or more clauses to the contract agreement. The system adds these clauses to the transactional contract when you specify this agreement for either the contract header or contract line.

If you elect to include the agreement information in the contract document, the system incorporates the clauses specified here into the Microsoft Word document. When defining sections for a document, you include agreement information. When that section is used in a document configurator, the system adds clauses associated with the agreements to the document.

Use the Search button to select a clause to include on the contract agreement.

See Searching Clause Content.

The Title, Full Text, and Reference Text fields are display-only. When you select a clause ID, the system populates these fields with existing clause data. You cannot change this data unless you use the clause maintenance facility. In this case, the clause update is controlled by the document authoring system and could include collaboration and approvals before the approval status makes it available for use again.

Sequence

Displays the sequence for this agreement clause. The sequence number controls the order in which the clause appears in the document. This is a Microsoft Word document that the system generates using information and values from the document authoring system and transactional data.

When a clause is first added to an agreement, the sequence number defaults to 10, but you can change it as needed. When adding additional clauses, you should leave a gap between sequence numbers in case you need to insert an additional clause between two existing clauses. Click the + button and assign the sequence number based on where the clause should appear.

Clause ID

Select a clause to assign to the agreement. This is a required field. The clause must already exist before you can assign it to an agreement. You cannot add ad hoc clauses to agreements. Use the Clause feature in the Manage Contract Library component to add a clause for use with an agreement.

Search

Select to access the Clause Search page where you can provide search information for locating clauses.

Select Body Text

Use this group box to define which type of body text you want to use in the clause. You can select only one type.

Full Text	Select to display the full text of the clause in the agreement document. Full text and by reference text are generation types that the system uses when generating the working Microsoft Word document. You can select either full text or by reference text.
By Reference Text	Select to include text by reference in the clause. Text by reference indicates a line to which the clause applies and a reference document that describes conditions for the line. The citation of the reference text should be sufficient to describe the contents of the reference, so that reprinting the full text of the clause in the document is not needed.
Title	Displays the clause title. This value is used with the clause regardless of whether you select Full Text or By Reference Text.
Full Text	Displays the full text that appears in the clause agreement if you select Full Text in the Select Body Text group box.
Reference Text	Displays the by-reference text that appears in the clause agreement if you select By Reference Text in the Select Body Textgroup box.

See Also

Defining Contract Clauses

Assigning Workflow Notifications for Agreements and Steps

Access the Agreement Notification page.

Use this page to indicate if workflow notifications will be initiated when there is a change in status of an agreement or step or if you want to notify the recipient about a pending or past due date.

The system uses these notifications as default values on the contract when the agreement is specified on the contract header or line. The recipients you add here are typically those individuals who are always an interested party when this agreement is included in a contract. At the contract level, you can add additional notifications or delete existing ones. If the interested parties are always different for each contract, you do not need to specify any workflow notifications here. Instead, you can set up the notifications when you create the transaction contract.

Workflow Sequence	Displays workflow notifications. This is a system-generated number that identifies the workflow notification.
Notification Type	Select a notification type. Notification types are triggers for sending notifications to specified recipients. You can add as many recipients as necessary for each notification type. Values are: Agreement: Select if you want to send the notification to the recipient when the status of the agreement changes, or to remind the recipient of an approaching or past target date Agreement and Step: Select if you want to send the notification to the recipient when the status of the agreement or a step changes. Also, when you want to remind the recipient of an approaching or past target date for either the agreement or step. Verification Step: Select if you want to send the notification to the recipient when the status of a step changes, or to remind the recipient of an approaching or past target date. When you select this option, you must also specify the step number in the Verification Step column.
Verification Step	Select a verification step to which this notification applies. The system displays this field when you select Verification Step as the value in the Notification Type field. Verification steps define the documents or inspections that might be necessary to fulfill the agreement.
User Type	Select whether the user is an internal or external user. You can also leave the field blank. This is an informational field that is not validated by the system, but is used to determine if the recipient is within the organization or a supplier. The default value is Internal.
Recipient Name	Select a user's name if the recipient is defined in the system, or you can enter an external user's name. When you enter a name, the system searches the Operator record for the name, and, if it finds it, inserts the person's email address in the Email Address field.
Email Address	Enter an email address for the recipient. This is a required field and the system uses it to route workflow notifications.

Details

Select the Details tab.

Use this tab to set up workflow reminder dates for recipients of agreement or step workflow notifications. You can base notifications on a change in status of the agreement or step or as a reminder when a due date is approaching or has passed. You can also select to send notifications in all instances, or to send notifications for specific reminders.

Notify On Status Change	Select if you want to notify the recipient when there is a status change in the agreement or verification step. The system sends the notification to all recipients with a notification type set to Agreement or Agreement and Steps when the compliance status of the agreement is changed from Not Set to Cancelled, Compliant, or Not Compliant. If the activity status of the verification step changes from Not Started to Cancelled, Completed, Failed, or In Process and the recipient's workflow notification type is set to Agreement and Steps or Steps (and the step specified is being changed), the system sends a notification. To make changes to the status at the agreement or verification step level, use the Update Agreement Statuses component.
Reminder Number Of Days Prior	Enter the number of days that you want a recipient to take action before the agreement or verification step is due. For example, if the agreement’s target date or the step’s due date is set to March 15 and you set the number of days prior to five, the system does not notify the recipient until five days prior to March 15 or on March 10. If the notification type is Agreement, the system notifies the recipient this number of days prior to the agreement’s target date. If the notification type is Verification Step, the system notifies the recipient this number of days prior to the step’s due date. If the notification type is Agreement and Step, the system notifies the recipient this number of days prior to the agreement’s target date as well as this number of days prior to every step’s due date. If you leave this field blank, the system does not send reminders.
Final Reminder Days	Enter the number of days prior to the agreement’s target date or the step’s due date that you want the system to send a final reminder. This field processes dates the same as the Reminder Number of Days Prior field and represents the last notification before the target date or due date have passed.
Passed Target Date	Select to indicate that the recipient is to be notified when the agreement’s target date has passed and the agreement’s compliance status is not set to Compliant or the step’s due date has passed and the activity status is not set to Completed. The system notifies the recipient following each run of the Workflow Notifications process until the agreement or step status is set to Compliant/Completed or Canceled.

Processing Agreement Workflow Notifications

Access the Process Notifications page.

Use this page to periodically run the Workflow Notification process. This initiates the reminders and notifications specified on the agreement. The process checks that the:

Contract’s header or line agreement compliance status is not set to Compliant.
Contract’s header or line agreement verification step’s activity status is not set to Completed.

The process then determines which notifications must be sent based on the notification type and the options defined on the Details tab on the Workflow set up page. If the notification type is Agreement, the process checks for these conditions:

If a quantity is specified for the Reminder Number of Days Prior, the process checks if the current date is less than or equal to the agreement’s target date minus the number of days specified. If the condition exists, the process sends a notification.
If a quantity is specified for the Final Reminder Days field, the process checks if the current date is equal to the agreement’s target date minus the number of days specified. If the condition exists, the process sends a final reminder.
If the current date is past the agreement’s target date, the process sends a past due reminder. This depends on whether the Agreement Past Due check box below is selected.

If the notification type is Verification Step, the process checks for these conditions:

If a quantity is specified for the Reminder Number of Days Prior field, the process checks if the current date is equal to the step’s due date, minus the number of days specified. If the condition exists, the process sends a notification.
If a quantity is specified for the final reminder days, the process checks if the current date is equal to the step’s due date, minus the number of days specified. If the condition exists, the process sends a final reminder.
If the current date is past the step’s due date, the process sends a past due reminder. This depends on whether the Verification Past Due check box is selected.

If the notification type is Agreement and Step, the process sends notifications based on the agreement criteria defined on this page as well as for each step that meets the verification step criteria.

User ID	Displays the user running the process.
Request ID	Enter a unique identifier for this run control process.
SetID	Enter a valid setID. If you leave the field blank, the system processes contracts for all setIDs.
Contract ID	Select a contract for which you want notifications processed. If a contract is not specified, the process creates notifications for all contracts that have agreement notifications specified. If you entered a setID, the system only processes those contracts for that setID. If you do not enter a setID, the system processes all contracts for all setIDs.
Agreement Past Due	Select if you want the system to issue past due notifications each time this process is run. If the Passed Target Date check box is selected on the Agreement Notification page, the current date is past the agreement’s target date, and the agreement status is not yet set to Compliant, the process issues a past due notification. This means that if the agreement is past due by 10 days and this process is run daily, the recipient will have received 10 past due notifications and will continue to receive reminders each time this process is run until the task is set to Compliant or this check box is cleared. If the Passed Target Date check box is not selected for the agreement’s workflow, the system does not send past due reminders, regardless of the setting here.
Verification Past Due	Select this box if you want the system to issue past due notifications for verification steps each time it runs this process. If the Passed Target Date check box is selected for the verification step, the current date is past the verification step’s due date and the step is not yet set to Completed, the system issues a past due notification. This means that if the step is past due by five days and the system runs this process daily, the recipient will have received five past due notifications and will continue to receive reminders each time this process is run until the task is set to Completed or this check box is cleared. If the Passed Target Date check box is not selected on the verification step’s workflow, the system does not send past due reminders, regardless of the setting for this check box.

Assigning Agreements to Purchasing Contracts

This section provides an overview of purchasing contract agreements and describes how to:

Assign contract header agreements.
Set up header agreement verification steps.
Assign contract header clauses.
Assign contract header workflow.
Assign contract line agreements.
Assign contract line clauses.
Assign contract line workflow.

Understanding Purchasing Contract Agreements

You can assign predefined agreements to a contract at the header level or at the line level. Header-level agreements are typically negotiated terms that apply to the entire contract. Line-level agreements are terms that apply only to a specific line item on the contract. When you select an agreement from the agreement library, the system defaults information defined on the agreement into the contract. You can modify the information associated with the contract without changing the data on the master agreement. As an alternative, you can also create ad hoc agreements at each level by defining them directly on the contract. Ad hoc agreements are not part of the agreement library, but exist only for the life of the contract on which they were created.

When you install both PeopleSoft Strategic Sourcing and Supplier Contracts Management, you can optionally assign clauses and agreements to the Strategic Sourcing bid factors. The clauses can be displayed to bidders online during the bid response process as well as on the event Adobe PDF file that the system generates when a sourcing event is posted. The bid factors and responses can also become an agreement and results when the event is converted to a contract.

Pages Used to Assign Agreements to Purchasing Contracts

Page Name	Object Name	Navigation	Usage
Contract Header Agreement Assignments	CS_AGREE_CNT	Supplier Contracts, Create Contracts and Documents, Contract Entry Click the Contract Agreement link on the Contract Entry page.	Assign contract header agreements.
Contract Header Clause Assignments	CS_AGREE_CNT_CLAUS	Click the Clause Assignment link on the Contract Header Agreement Assignments page.	Assign contract header clauses.
Contract Header Workflow Assignments	CS_AGREE_CNT_WF	Click the Workflow Assignments link on the Contract Header Agreement Assignments page.	Assign contract header workflow.
Contract Line Agreement Assignments	CS_AGREE_CLN	Supplier Contracts, Create Contracts and Documents, Contract Entry Click the Contract Agreement button for the line item on the Contract Entry page.	Assign contract line agreements.
Contract Line Clause Assignments	CS_AGREE_CLN_CLAUS	Click the Clause Assignment link on the Contract Line Agreement Assignments page.	Assign contract line clauses.
Contract Line Workflow Assignments	CS_AGREE_CLN_WF	Click the Workflow Assignments link on the Contract Line Agreement Assignments page.	Assign contract line workflow.

Assigning Contract Header Agreements

Access the Contract Header Agreement Assignments page.

Use this page to assign agreements to a contract. You can select from an existing list of agreements, manually add agreement information, or modify information that was converted from a Strategic Sourcing event.

If you use a predefined agreement code, the information from the agreement appears as default information on the Contract Header Agreement Assignments page. You can change this default information, but changes to the predefined information affect only the specific contract. The changes are not made to the original agreement. The information that you define for the agreement exists only for the life of the contract.

If agreement terms and verification steps are unique to the particular contract, you can define those terms and steps for the contract without first defining them as an agreement code. In this case, the information is available only for the life of the contract. While agreement information is also copied to another contract, when you use the copy function to create a new contract, the agreement information will not be a part of the agreement library. As with predefined agreement codes, you can add clauses and workflow notifications.

You can also predefine agreement information on a contract if the contract was generated from a PeopleSoft Strategic Sourcing event. You can associate agreement codes with Strategic Sourcing bid factors that are subsequently used with Strategic Sourcing events. When you award a buy auction to a bidder and create a contract, the system converts the bidder’s responses to bid factor questions to the agreement information on the contract.

The page contains agreement details and comments as well as the verifications steps and owners who are required to determine if the agreement is compliant or not. A contract can have multiple agreements with each one having a different set of verification steps. You can also assign clauses and workflow information for each individual agreement.

When you complete this page, you can create the document for the agreement and its clauses. If a document already exists for the agreement, you need to refresh or regenerate the document to incorporate any changes you make to the agreement information.

Sequence	Displays the agreement sequence code. If you are initially adding agreements to a contract, the sequence number defaults to 10, but you can change it as needed. When adding additional agreements, you should leave a gap between sequence numbers in case you want to insert an additional agreement between two existing ones. To insert an additional agreement, click the + button and assign the sequence number based on where the agreement should appear. The sequence number controls the order in which any associated clauses are added to the document. Clauses for the first agreement are added first, clauses for the next agreement are added second, and so on. If the system automatically adds agreements when it converts the PeopleSoft Strategic Sourcing event to a contract, the agreements are added with sequence numbers in increments of 10.
Compliance Status	Displays the current status of this agreement. You cannot change the status using this page. Use the Update Agreement Status page to update the status. Values are: Cancelled: Indicates that the agreement has been canceled. Not Compliant: Indicates that the verification steps have been completed but the agreement is not in compliance with the agreed upon terms. Not Set: Indicates that the agreement steps are still in process or not yet started. This is the initial setting when the agreement is added. Compliant: Indicates that the verification steps are completed and the agreement is in compliance with the set terms. If you change any aspect of the agreement after this value has been set to Compliant, the system sets the status back to Not Set.
Agreement Code	Select a predefined code or enter an ad hoc code. If you select a predefined code, the system populates the rest of the agreement with the information defined for that code. If you are entering an ad hoc agreement, you must complete all the required fields. If the contract was created from a PeopleSoft Strategic Sourcing event, the system converts bid factor responses to the agreement information.
Agreement Description	Displays the description that was previously assigned if you entered an agreement code. If you are creating an ad hoc agreement, enter a description.
Result Type	Select a value that indicates how you are measuring the results of the agreement. If you selected a predefined agreement code, the system displays the default value from that code. When any result type except None is selected, the system provides a Negotiated Result field. Field values include: Date: Select to use a calendar date as the type of result for measuring the output of the agreement. Monetary: Select to use costs that relate to the agreement as the result measurement. Numeric: Select to use figures, such as the number of hours a day a crew has access to the work site, to measure the agreement. Text: Select to use a question that requires a text answer, such as a description of work completed. Yes/No: Select to use a question with a yes or no answer as the measurement of whether the agreement is compliant or not compliant.
Negotiated Result	When you select a result type other than None, this field becomes available for input. The negotiated result is the expected outcome of the agreement and represents the value of that outcome. The value for this field depends on the value you selected in the Result Type field. If you selected Date as a result type, enter a date here. If you selected Monetary or Numeric as the result type, enter the amount here. If you selected Text, an expanded field appears for you to type instructions or descriptions of up to 256 characters.
UOM (unit of measure)	Select a unit of measure that defines the numeric value entered in the Negotiated Results field. The UOM field is available and required if you selected a result type of Numeric. This value can represent, for example, hours or days.
Currency	If you selected a result type of Monetary, the Currency field is available for input and is a required field. Select the currency that defines the monetary amount entered in the Negotiated Results field.
Target Date	Enter the date by which the terms of the agreement must be completed to be compliant. You can enter a date here or the system enters the date automatically by calculating when an existing agreement code is selected. The date is based on the contract start or end date or a specified number of days prior to or past the contract start or end date.
Notification Comments	Enter text that will appear in the workflow notification worklist if workflow is set up for the agreement.
Financial Implications	Enter text that describes any financial implications whether the agreement is or is not met. The text might specify a penalty assessed or a bonus paid to the vendor.
Include in Contract Document	Select to include the agreement information and its associated clauses on the purchasing contract when you dispatch it to the vendor. You could set up the agreement so that it serves only as an internal reminder to collect certain documentation or to perform some steps prior to the completion of the contract. In these instances, the information should not be sent to the supplier or used in the wording of the contract document.

See Also

Setting Up Basic Agreement Information

Setting Up Header Agreement Verification Steps

Access the Contract Header Agreement Assignments page.

Use the Verification Steps grid on the Contracts Header Agreement Assignments page to define the steps required to validate the agreement. If you previously selected a predefined agreement code, the system automatically populates the steps which can be changed, added to, or deleted. If you are adding an ad hoc agreement or if the agreement information originated from a PeopleSoft Strategic Sourcing event, you can add steps here. Verification steps are optional.

Step	Displays the system-assigned step that defines the order in which verification is completed. The system begins the sequence number with 10, but you can change the sequence. You should leave gaps between the step numbers in case you want to insert additional steps at a later date. Verification steps define the criteria necessary to fulfill the agreement. After you define information for any field for the step, the system assumes you are adding verification steps to the agreement. You can delete steps on an existing contract without affecting the basic agreement.
Description	Enter a description for the verification step. This could be, for example, what document or inspections are required to complete the step. If a verification step is added to the agreement, this field is required.
Step Owner	Select the person responsible for verifying the step has been completed. This might include collecting documents or notifying the contract administrator. The step owner can be someone internal to the company or an external contact or vendor.
Verification Method	Select the method by which you want this step verified. The method defines how a verification owner indicates a step has been completed. This is a required field if steps are added to the agreement. Verification methods include: Attachment: Select to indicate that the verification of this agreement step is accomplished by posting supporting documentation. The verification owner can attach supporting material using the Update Agreement Statuses pages. Comments: Select to indicate that the verification can be made by entering text or comments Date/Time: Select to indicate a date and time stamp will be provided when the step has been completed. Notify: Use this option when no action is required to signify the step is completed. If a workflow notification is assigned to the step, the system notifies selected roles when the step’s due date is approaching or has passed. You can use this method to send periodic informational notifications or reminders to various interested parties. Yes/No: Select to indicate that the verification owner can update the verification step online using a yes or no response.
Due Date	Indicates the date that this verification step must be completed. The due date defaults to the target date of the agreement. If a target date has not been entered for the agreement, the system sets the date to today’s date. If the contract start or end date changes or if the target date of the agreement changes, the system does not automatically update the step's due date. You must manually synchronize the dates as needed.
Activity Status	Displays the status of the verification step. The status is not updated here, use the Verification Step link on the Update Agreement Status page. Values are: Cancelled: Indicates that the step owner has canceled the verification of this step. Completed: Indicates the step has completed. Failed: Indicates the step has not been completed by the agreed upon date. In Process: Indicates that the verification process has started or the task is in the process of being completed. Not Started: Indicates that the step owner has not started the verification process.
Notification Comments	Enter a description that the system uses if workflow notifications are associated with the step.

Assigning Contract Header Clauses

Access the Contract Header Clause Assignments page.

Use this page to assign clauses to contract header agreements. These clauses pertain to the terms of the contract in general. You can alternately assign clauses to specific line items by defining agreements at the line level.

If you add a predefined agreement and clauses are associated with the agreement, those clauses appear here. Likewise, if the contract was created from a PeopleSoft Strategic Sourcing event and bid factors with associated clauses were added to the contract, the system displays them here.

As with verification steps, you can add or delete clauses without affecting the basic agreement or bid factor definition. You cannot change the text of the clause here. Use the Clause Definition page to make clause updates. The order in which the clauses were added to each agreement determines the order in which they appear in the document.

See Also

Assigning Clauses to Agreements

Assigning Contract Header Workflow

Access the Contract Header Workflow Assignments page.

Use this page to define who should review this contract header agreement. You can assign notifications for changes in status of the header-level agreements as well as reminders for the verification steps associated with the header agreements.

If you have selected a predefined agreement, the system copies the workflow notifications from that agreement. You can change any attribute about the notification, delete existing notifications, or add additional notifications without affecting the basic agreement.

Assigning Contract Line Agreements

Access the Contract Line Agreement Assignments page.

Use this page to assign an agreement to a line item on a contract. This feature makes it possible to define contract terms and clauses specific to an item or item category. You can assign agreements to specific line items by clicking the Contract Agreement button in the Lines grid of the Contract Entry page. Using the button, you access the Contract Line Agreements Assignments page. This page is identical to that used to assign agreements at the contract header. Field values and the use of the page are similar.

See Also

Assigning Contract Header Agreements

Assigning Contract Line Clauses

Access the Contract Line Clause Assignments page.

Use this page to add a clause to an agreement for a contract line item. Click the Description link to access details about the item. You can add additional clauses by clicking the Add a New Row button.

See Also

Assigning Clauses to Agreements

Assigning Contract Line Workflow

Access the Contract Line Workflow Assignments page.

Use this page to define workflow assignments for an agreement that is linked a line item. Click the Description link to access item details.