1. Prepared by: Session ID: PeopleSoft Procurement Contracts Madeline Osit COO Beacon Application Services mosit@beaconservices.com 100640

2. Objectives Discuss recent enhancements to Procurement Contracts and the benefits to the Enterprise Review delivered business process flow for PeopleSoft Procurement Contracts Discuss the scope, level of effort, and steps in implementing Procurement Contracts in an existing PeopleSoft environment

3. Agenda Benefits to the Enterprise Procurement Contracts Overview Recent Enhancements Delivered Business Process Flow When to Use Procurement Contracts How a Contract is Associated with an Order Notifications How to Configure

4. Benefits to the Enterprise Efficiently monitor contracts across the enterprise Enforce compliance with negotiated pricing and volume discounts Ensure contracted terms are applied directly to Purchase Orders Automatic sourcing relieves buyers of repetitive work, freeing them for more strategic duties Notify buyers prior to contract expiration or when the maximum amount is reached Generate fewer Purchase Orders

5. Procurement Contracts - Overview Allows management of recurring voucher payments and purchase order releases over any time period Supports both product and service contracts Enables you to share contracts across business units

6. Where Are They Used? When there are repeated transactions (orders or payments) throughout the life cycle of the contract If you need electronic records of all paper contracts to provide an audit trail

7. Procurement Contracts vs Supplier Contract Management Procurement Contracts Delivered with Purchasing/eProcurement Emphasis on contract execution Captures information for executing contract Supplier Contract Mgt. Separate module which integrates with Procurement Contracts Emphasis on contract documentation Deliverable and SLA management

8. Recent Enhancements Oracle Secure Enterprise Search (SES) for Procurement Contracts enables you to take action directly from your search results An Auto-Default option on the Procurement Contract transaction controls whether a contract should auto- default into requisition or purchase order transactions or whether you must manually select the appropriate contract Recent Enhancements

9. Recent Enhancements – Cont’d Enhanced the ability for requisition lines that reference a procurement contract to be sourced to inventory Enhanced ability to create procurement contracts for a supplier with similar characteristics such as begin dates, items, categories, and pricing Recent Enhancements

10. Delivered Business Process

12. Types of Procurement Contracts Procurement Contracts come in three types: Purchasing Contracts  PO Contracts  Single PO Contract Voucher Contracts  Recurring Voucher  Recurring PO Voucher General Contracts

13. Purchasing Contracts Can be associated with Master Contracts for reporting Can be either item-specific or open item contracts Can lower maintenance costs by sharing across business units (Corporate Contracts)

14. Purchasing Contracts Ensure compliance through automatic association with POs Allow for reporting and tracking against the contract Support tiered pricing based on volumes

15. When to Use PO Contracts Purchase Order Contracts are used: To schedule or track orders only – including amount only and milestone payments To create a separate PO for each contract release To allow you to close each PO after receipt & payment

16. When to Use Single PO Contracts Single PO Contracts are used: To use the same PO throughout the contract life cycle for payments other than amount only and milestone For convenience of tracking, receiving and payment against a single PO

17. Single PO Contract - Items Specified Supplier Data Enter Begin Date; Expire Date Optional Maximum Amount (optional): total amount that this contract should not exceed Select contract options

18. Single PO Contract - Items Specified Business Unit Input Buyer if other than originator Enter Contract Line Items. These can be either Items in the Item Master or non- cataloged items may be identified by description only.

19. Voucher Contracts Use to Schedule Iterative Payment Vouchers Can be associated with Master Contracts for reporting Allow for reporting and tracking against the contract

20. When to Use Recurring Voucher Contracts When you want to create contract-related vouchers on an “as required” basis To stage all releases up front while creating individual vouchers as needed such as for rent payments

21. When to Use Recurring PO Voucher Contracts Typically used with commitment control to encumber funds up front – prior to the creation of the vouchers

22. Sample Voucher Contract Supplier Data Enter Begin Date; Expire Date Optional Maximum Amount (optional): total amount that this contract should not exceed

23. Sample Voucher Contract Payment Terms for vouchers generated from this contract Invoice Number if applicable

24. Sample Voucher Contract Release AP Business Unit for Vouchers Supplier Location if not defaulted from PO Interval to create a release for this contract and other frequency information Duration: How long the recurrences continue

25. When to Use General Contracts General Contracts can be used for both purchase order and voucher references You can use the General Contract contracts for both release types, but you must release them individually

26. Sample Open Item General Contract Supplier Data Enter Begin Date; Expire Date Optional Maximum Amount (optional): total amount that this contract should not exceed Select contract options. Note in this case the Allow Open Item Reference box is checked so we do not need to specify individual items covered under this contract

27. Sample Open Item General Contract Because this is an Open Item contract, we are not required to specify items or categories covered. Instead, the contract applies to any goods or services provided by this supplier within the terms and limits of the contract.

28. Associating Contract Releases with POs

29. Associating Contracts with Requisitions

30. Manually Associating Contracts with POs

31. Procurement Contract Notifications Date Notifications Maximum Amount Notifications Spend Threshold Notifications (with Supplier Contract Mgt.) Who Gets Notified When

32. Configuration – Contract Controls Contract Numbering & Controls Change Tracking Default Currency Supplier Rebates

33. Configuration – Contract Intervals Define Schedule Intervals Define Detail Counters

34. Configuration – User Preferences Define User Process Options Define Default Display for User

35. Configuration – Item/Supplier Associate items with the suppliers who furnish them Prioritized item-supplier combinations (optional)

36. Summary Today we discussed: Procurement Contracts Overview Benefits to the Enterprise Recent Enhancements Delivered Business Process Flow When to Use Procurement Contracts How a Contract is Associated with an Order Notifications How to Configure Procurement Contracts

37. Questions? Madeline Osit Beacon Application Services mosit@beaconservices.com 781 856 0109

38. Session ID: Please complete the session evaluation 100640