Creating contract classifications

Approval Type

Select an approval type.

• No Approvals: Classification is not used to perform approvals.
• Approvals With No Redlining: Contracts with this classification use Process Automation to approve the contract. No document or contract redlining is involved in the process. This approval type uses a process automation flow named cmcontractappr.lpd.
• Approvals With Redlining On Document: Contracts with this classification use Process Automation to route a document with redlining between internal approvers and then provide the redlined document to a supplier for negotiation. This approval type uses a process automation flow named CMWordAppr.lpd.
• Approvals With Redlining On Contract: Contracts with this classification use contract forms and Process Automation to route a contract between primary contacts, internal approvers, and suppliers. Those roles can make direct changes to terms and conditions and use redlining to indicate changes. This process allows suppliers to use the Supplier Portal to make redlining changes to contract forms. This approval type uses a process automation flow named ContNegFinalAppr.lpd.

Use IDM

Select this check box to enable IDM document generation and IDM Redline processing. For more information, see Document Output Management for Infor Financials and Supply Management User Guide.

Require Commodity Code For Non Service Items On Contract Lines

Select this check box if a Commodity Code is required when a contract line is created and an item master record is not used. If an item master record is used, then the Commodity Code is required on the item master record.

Require Manufacturer Code For Non Service Items On Contract Lines

Select this check box if a Manufacturer Code is required when a contract line is created and a vendor item is not used. If a vendor item is used, then the Manufacturer Code is required on the vendor item.

Require Manufacturer Number For Non Service Items On Contract Lines

Select this check box if a Manufacturer Number is required when a contract line is created and a vendor item is not used. If a vendor item is used, then the Manufacturer Number is required on the vendor item.

Require A Distribution To Be Entered For Special Items

Select this check box if a distribution is required when a contract line is created and the item type is special. The distribution for the contract line must be created before contract activation.

Document Template

Select a template to use with contracts that are assigned to this classification. The template is used to create contract documents.

Addendum Template

Select a template to use with contracts that are assigned to this classification. The template is used to create addendum documents.

Eligible For Event Creation

Select this check box to create an event after the contract is activated. If this check box is selected, then the classification default is used on the contract.

Allow Supplier To View Comments And Attachment On Portal

Select this check box to allow suppliers to view comments and attachments on the Supplier Portal.

Change To Active Contract Line Sets Status To Amendment

When this check box is selected and a contract line is changed on an active contract, the line becomes an amendment.

Allow Change Order

Select this check box to allow change orders on a contract.

Contract Addendum Or Amendment When Change Order Is Created

Select whether to create an Addendum or an Amendment when a change order is created for an active contract.

Update Contract Lifetime Maximum When Change Order Updates Occur

Select this check box to update the lifetime maximum quantity for the contract when a change order is updated.

Allow Multiple Change Orders Per Amendment Or Addendum

Select this check box to allow multiple change orders to be processed before contract approvals are made.

Allow Fields Affected By Change Orders To Be Updated Directly

Select this check box to allow fields that are affected by change orders to be updated outside of change orders.

Create Contract Document When Change Order Is Completed

When this check box is selected, a contract document is automatically created when a change order is completed. The document captures the state of the contract after the change order is applied.

Edit Budgets When Change Order Is Submitted

On commitment type contracts, when this check box is selected, budgets are checked against amounts on the change order. If budget errors exist, then the change order is not submitted. The contract owner receives a notification that describes the error.

Note: This option is for change orders that are submitted by a Requester. This process does not replace the budget editing that happens when a contract is released and activated.

Tolerance Handling

Select an option to handle tolerance errors.

• Online Error: An error is displayed on the page and the cost change cannot be saved.
• Create Tolerance Error Record: An error record is created.

  Error records are listed in these locations:

  • The Tolerance Error tab on the contract line.
  • The Alert Lists tab on the contract.
  • The Tolerance Error tab on the Additional Contract Information page.

Percent Not To Exceed

Specify the tolerance percent. If the cost change is greater than this percent, then an error occurs based on the selection in the Tolerance Handling field.

Amount Not To Exceed

Specify the tolerance amount. If the cost change is greater than this amount, then an error occurs based on the selection in the Tolerance Handling field.

Default Tolerance Options To Contract Interface Cost Updates

Select whether the tolerance options in this section are used as default values when costs are updated from contract interface records. Error records are created for interface cost updates regardless of the selection in the Tolerance Handling field.

Require Commodity Code For Service Items On Contract Lines

Select this check box if a Commodity Code must be specified on a service contract line before an agreement line can be created.

Show Healthcare Information On Contract Lines

Select this check box to show healthcare items on contract lines.

Unless described differently for the required process, an option that is selected invokes the full contract approval process in Process Automation.

Anywhere that negotiation is used in a field name, it refers to the negotiation of the contract with a supplier.

Before approvals are processed, the contract is in draft, addendum, or amendment status.

• If one of the Before Negotiation options is selected, then releasing the contract puts the contract in a released status.
• If one of the Supplier Contract Negotiation options is selected, then releasing the contract or completing internal contract approval puts the contract in a negotiation status.
• If one of the Require Internal Contract Approval After Negotiations options is selected, then the contract is in final approval status after supplier negotiation.

During contract approval before and after supplier negotiation, unless otherwise noted, these are the options:

• Approve: Moves a contract to the next status or step in the process.
• Disapprove: Sets a contract back to draft status.
• Reject: Sets a contract to inactive status and puts it on hold.

After the approval processes are complete, the contract is in a ready to activate status.