Selecting a Template for a New Contract

Complete the following steps to create a new contract:

1. Log in to ONE system.

2. Click Menus/Favs > Contract Mgmt > New Contract . In the NEO UI, users can click on the Menus/Favs icon on the left sidebar and type in the name of the screen in the menu search bar. For more information, see "Using the Menu Search Bar."
   The New Contract screen displays with the Contract Details tab selected as the default .
   
   

3. To select a standard or custom template for the contract, click the Manage Template arrow.
   

4. Click Switch Template.
   The Select Template dialog box appears. The default is Standard Template.
   
   
   
   

5. From either the Standard Templates or My Templates sections, click a template option.

6. Click Select.
   The screen displays fields and tabs for the selected template.
   

Adding Contract Details

The following instructions are based on the default fields in the New Contract screen.

1. Fill out the following fields. Fields with an asterisk ( * ) are required.
   

   Section	Field	Description
   Contract Details	Contract No	This field will populate once the contract has been saved.
   	* Vendor	Type in the name of a vendor. A list of vendors displays as you type. For a vendor to appear as part of the auto-complete feature, that vendor must exist in the Vendor Master list.
   	* Effective Date Range	Use the calendar tool to select the beginning and end dates. Users can also select relative dates in a schedule.
   	* Currency	Select a country currency code from the dropdown list. This field is related to the Max Amount field.
   	Contract Name	Type in a name for this contract.
   	Documents	Click the icon to attach a document to this contract. This functionality is only available once the contract has been saved.
   	State	This field provides the state of the contract in the system.
   	* Buyer Code	Enter the buyer code.
   	Max Amount	Enter the number for the maximum amount allowed for this contract. This field relates to the currency selected.
   	Revision	This field displays the contract revision number.
   	Description	Enter a description for contract revision.
   	Contract Mgmt Org	Enter the managing organization for this contract.
   	Auto Generate Claims	Select the check box to enable automatically generating claims for contract violations.
   Additional Info	Sales Rep	Enter the name of the sales representative.
   	Creation User	This field displays the username of the user who created the contract. It is auto-populated.
   	CPC Number	Enter the Customers Procedure Code (CPC) number.
   	Sales Rep Phone	Enter the phone number for the sales representative.
   	Creation Date	This field auto-populates the creation date of the contract once it has been saved.

2. Click the Save button.
   A green success bar shows, and the screen updates to show new actionable buttons at the bottom of the screen.
   
   

   

   
   
   

3. Click the Print button to print this contract.

4. Click the Audit button.
   The contracts' audit trail, indicating any changes made to the contract, displays on a new tab where the information can be exported to a CSV file.

5. Click the Clone Contract button to clone this contract.
   A new tab opens with a cloned copy of this contract.

6. Click the Add Term to add terms to this contract.
   Instructions for this process are found below in the "Add Terms to a Contract" section of this page. You can add terms at a later date if necessary.

7. Click the Update button if changes are made and need to be saved so the contract can be updated.
   A green success bar displays.

8. Click Cancel to cancel this contract.

9. Click the Yes button to cancel.
   A green success bar displays, and the state of the contract updates to Canceled. A Reopen button displays so that the contract can be reopened.

10. Click the Confirm button.
    A green success bar displays, and contract is confirmed. New actionable buttons display.

11. Click the Close Contract button to close this contract.
    A Confirm popup box displays.

12. Click the Yes button to close the contract.
    The contract updates and is closed for any updates. A Reopen button displays so that the contract can be reopened.

Adding Terms to Contracts

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 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 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 vendor 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 vendor. 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 shipment confirmation. 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 the 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.
   Vendor Notes	This field is where notes from the vendor organization will display.
   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.
   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.
   Escalation User	This field is auto-populated with the user name if an escalation approval process has been established.
   Freight Forwarder Partner	This field is visible only if the FOB Code is FOB03 or FOB06. If freight forwarder is defined, then freight invoice can only come from freight forwarder.

The following sections can be expanded and collapsed by clicking on the arrows on the left of the section headers.

Add a Line Item to a Contract

You can add a single or multiple line items to contracts.

Complete the following steps to add line items to a contract:

1. Click the Add Line button.
   A new contract line screen displays.
   
   
   
   

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

   Field	Description
   Contract Line No	This field auto-populates with a system-generated number once the line item is saved to the contract.
   * Line Type	Select the line type for the terms from the dropdown list.
   * Item	Enter the item name associated with the contracts terms.
   Customer Item	Enter the customer item name associated with the line item.
   Supplier Item	Enter the supplier item associated with the line item.
   Ship To	Select the type of location to ship to from the dropdown list in the first field. Select the specific location in the second field.
   Tax Allowed	Check the box to allow tax for this line item.
   Line State	This field auto-populates with the line state.
   Item Description	This field auto-populates with the item's description when an item is entered.
   Invoice Item	This field auto-populates the invoice item associated with the line item.
   Buyer Planner Code	Enter the code for the buyer planner.
   Ship From	Select the type of location to ship from from the dropdown list in the first field. Select the specific location in the second field.
   Documents	Click the icon to attached documents to this line item. You can add documents only after saving the contract.
   Inco Terms	Select the Inco Terms (International Commercial Terms: internationally recognized terms of sale) from the dropdown list.
   Inco Terms Location	Enter the Inco Terms location.
   Drop Shipment	Select this field to enable drop shipping. When this field is enabled, the item, buffer, ACL, or contract line is marked for drop shipping, meaning the item is delivered directly to a customer instead of going to a warehouse first. When this field is disabled, the item, buffer, ACL, or contract line is marked for traditional shipping (to a warehouse first). The field is disabled by default.

   Note

   The system sends a notification to the CPG Buyer Planner whenever a new contract is created or approved. The system also creates a new AVL record for each new contract line item.
   

The following sections can be expanded and collapsed by clicking on the arrows on the left of the section headers.

Adding Holds to the Contract

Complete the following steps to add holds to a contract:

1. Click the Holds tab on the screen (after the contract has been saved).

2. Click the Add Hold button to add hold.
   The Create Hold popup window opens.
   
   

   

   
   
   

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

   Field	Description
   Hold Reason Code	Enter a reason code for the hold. The default value is Other.
   * Description	Enter a description for the hold.
   Blocking	Check the box to make this a blocking hold that stops the transaction from moving to different states. Leaving the box unchecked creates a warning hold that allows the transaction to move to different states.
   Rollback State	Check the box to allow value updates, but keep the blocking hold in place.
   * Assign To Org	Use the picker tool to select the organization the hold is assigned to.
   * Assign To User	Use the picker tool to select the organization the hold is assigned to.

4. Click Submit.
   The newly added hold details appear in the table.