Methods for creating a contract

Manual contracts

When you create a manual contract, you define information without using the interview process. This method does not require articles and terms on the contract.

See Creating manual contracts.

Manufacturer contracts

When you create a manufacturer contract, you associate the contract to a manufacturer or a distributor of goods and services.

Manufacturer Contract check box:

Select the check box to associate a contract with a manufacturer. If a contract is associated with a manufacturer, the contract is used to set the price for goods and services.

Manufacturer and distributor contracts are often negotiated for several years.

Distributor contracts

You can use a distributor contract to purchase items from a distributor. You can purchase items directly or against a manufacturer price where the contract is associated with a manufacturer contract.

Distributor Contract check box:

If a contract is associated with a distributor, the contract serves as a starting price that the distributor honors before applying a markup or discount.

If you are purchasing items directly from a distributor, the costs are negotiated between you and the distributor. If you are purchasing items against a manufacturer price, you can associate a manufacturer contract with the distributor contract. In this case, the distributor honors the manufacturer price of an item and then applies a markup or discount. Manufacturer and distributor contracts are often negotiated for several years.

The effective and expiration dates are often not the same for a manufacturer and a distributor.

• On distributor contracts, you can use effective dates to create distributor contract lines for the same set of items. Contract lines are used to account for multiple manufacturer contracts under a distributor contract where you have negotiated different prices for the same item.
• You can create multiple manufacturer contracts with different dates and associate them with the distributor contracts. You can add lines to the distributor contract if:
  • The manufacturer contract dates do not overlap
  • They are within the date range of the distributor contract
  The manufacturer contracts must have the same item, vendor item, and unit of measure, but can have different pricing.
• After contract lines are updated with multiple date ranges and purchase orders are created, the correct default cost is displayed. The cost is based on the comparison of the purchase order date to the date range on the contract line. The default cost for requisition lines occurs in a similar manner. The cost is based on the date that the requisition is created.

Contracts from interviews

When you create a contract from an interview, you answer specific questions to determine the articles and terms that are displayed on the contract. It acts as a wizard to guide you through a structured process of contract building. Before you can approve and activate the contract, the articles and terms must be assigned.

See Creating contracts from interviews.

Copy existing contracts

Copying an existing contract helps reduce the amount of information that you must define when creating the new contract. By reusing existing contract information, you can change or edit information that is specific to the new contract. You can use this method for contract renewals.

See Creating contracts from an existing contract.

Contracts from a template

When you create a contract from a contract template, you can use specific default information for new contracts. You can add or change information on the new contract.

See Creating contracts from a template.

Contract wizard

A wizard can be used to create contracts. The form shows panels for standard, manufacturer, or distributor contracts. On Manage Contracts, select Create > Create From Wizard,