Change orders and allowances
You can use contract change orders and allowances on any type of contract.
Change orders can be created by users with the Contract Manager, Requester, and Supplier roles.
You can use change orders to provide detailed tracking of changes to a contract after the initial components are agreed upon.
Follow these steps to make a contract eligible for change orders:
- Select the Allow Change Order check box when you create a contract classification or subclassification.
For more information about creating contract classifications, see the Supply Management Setup and Administration Guide.
- When you create a contract, select a contract classification that has change orders enabled.
You can use allowances to provide an estimate of the total value of a contract without committing to a specific invoice amount. Allowances are used on contracts that have Service set as the Purchase Type.