You can add one or more contract terms to the contract and assign contract line items to the contract terms.

Complete the following steps to add terms to a contract:

1. Click the Add Term button on the New Sales Contract screen. You can also click on the Terms tab and the Add Term link to open the same screen as below.
   The Term Details tab displays.
   
   

   
   

2. Enter values for fields described in the table below. Fields with an asterisk ( * ) are required.

   Field	Description
   Terms No	This field auto-populates with an assigned number for this set of terms once it has been saved.
   * Effective Date Range	The beginning and end dates auto-populate from the New Contract screen.
   * Invoice Active Code	Select an invoice activation code from the dropdown list. The following options are available: Active on Receipt: The invoice is considered active for validation only after material receipt at the receiving site. The customer may submit the invoice before the order receipt. The payment due date and discount date will be based on the invoice date provided by the customer. Active on Ship: The invoice is considered active for validation immediately after Purchase Order (PO) ship confirmation. Active on Shipment Confirm: This invoice is considered active for validation upon confirmation of the shipment. Consignment: This setting turns on the consignment configuration for the item, Ship To defined in the Contract Terms. The invoice is based on consignment consumption reports for the current pay period and payment schedule defined in the contract.
   * Payment Terms	Enter in payment terms for the contract. The system supports a configurable list of Payment Terms, for example (2% 10 Net 30) and uses payment terms for invoice generation and validation.
   Currency	Select the country currency code from the dropdown list.
   Discount	Check the box if a discount will be applied. This field is not available for all terms.
   FAL Assign to User	This field auto-populates the Convention on Facilitation of International Maritime Traffic (FAL) user assigned to the contract.
   Order Mgmt Org	Enter the name of the order management organization for the contract.
   Buyer Notes	This field is where notes from the buyer organization will display. The field is only editable after the terms are saved.
   Vendor Notes	This field is where notes from the vendor organization will display. The field is only editable after the terms are saved.
   Documents	Click the icon to attach documents to the contract terms. This functionality is only active once the terms have been saved.
   Auto Compute Tax	Select Yes or No to have these terms include automatically computed tax.
   State	This field is auto-populated based on the state of the terms.
   FOB Code	Select a Free on Board (FOB) code from the dropdown list. The FOB indicates when and/or if the seller or buyer is liable for goods that are damaged or destroyed during shipping. The system validates the invoice based on the FOB Code used to create the PO. Only FOB02 and FOB05 can have separate freight charges in the invoice from the vendor. Only FOB03 and FOB06 can have a separate invoice for freight charges from the carrier. The following table summarizes FOB codes. FOB Code Description Fuel Surcharge Allowed Freight Charges in Invoices FOB01 PREPAID 0 NA FOB02 PAY & ADD 0 From Vendor FOB03 COLLECT 0 From Carrier FOB04 PREPAID 1 NA FOB05 PAY & ADD 1 From Vendor FOB06 COLLECT 1 From Carrier
   FOB Point	Select the location where the FOB is activated from the dropdown list: Delivered or Origin.
   Payment Method	Select the method for payment from the dropdown list.
   Settlement Currency	Select the country code for the currency used for settlement.
   Usance	Enter a number for the usance or the period of time (in days) between the bill date and payment due date.
   VMI	Select chec k box for Vendor Managed Inventory (VMI) contracts.
   Auto Invoice	Check the box to indicate that an invoice is automatically generated by the system on the Ship, Receipt, or Consumption state of the order. Users can create manual invoices for contracts with the Auto Invoice check box unchecked.
   Auto Approve Invoice	Check the box to auto-approve the invoice. In this case, t he system automatically triggers the OK-to-pay signal after completing the invoice validation. When the checkbox is not checked, the system validates the invoice and then moves the invoice to the Valid state. The AP user manually approves the invoice to trigger the OK-to-pay signal.
   Tax Allowed	Select Yes or No from the dropdown list to indicate that tax is allowed for this contract term.
   Tax Provider	Select the tax provider from the dropdown list.
   Generated Detailed Invoice	Select Yes or No from the dropdown list to generate a detailed invoice for the terms of the contract.

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