Creating contract types

You can set up a contract type to organize and distinguish similar contracts for reporting and analysis purposes.

Before you can set up a contract type, a contract group must already exist in Contract Management.

Select Supply Management > Supply Management Setup > Contract Management > Contract Types.
Click Create.
Specify the Contract Group, Contract Type, and Description.

On the Type Detail tab, specify this information:

Vendor Purchase Type

This table shows vendor purchase types and their descriptions:


Type	Description
Contract	Contains the item cost information agreed upon between you and the vendor
Catalog/Quote	Contains a list of available items and their costs as offered for sale by the vendor. Considered as a non-binding price list.
Blanket	Contains a list of suggested items, letting you pick and choose which items you want to order and when.
Standing	Contains fixed items and quantities for supplies that you order often.
Service	Acts as an ongoing agreement between you and a service provider, containing the cost of the service and dates when the agreement is valid. Building or electrical repair are examples of services.

Note: If you leave this field blank, then the contracts assigned to this contract group will not be interfaced into the Purchasing.

Use For Cost Defaulting Options

This determines which items are used for cost defaulting to purchase orders and requisitions when the contract lines are created.

Special Items Options

Select an option that determines how special items are handled when contracts are activated.

Click Save.
On the Subtypes tab, click Create and complete the information.
Contract subtypes are optional and let you further define a contract type. If you define both a contract type and subtype for a contract, then the vendor agreement that is assigned to the contract subtype is used to process the contract.
Click Save.