How to Set Up and Use PeopleSoft Procurement and Supplier Contracts

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2 How to Set Up and Use PeopleSoft Procurement and Supplier Contracts Keith Olander Director Product Management SCM PeopleSoft Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal

3 Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle. Copyright 2014 Oracle and/or its affiliates. All rights reserved. 3

4 Program Agenda Total Contract Management Overview Procurement Contracts Initial Setup Creating Procurement Contracts Procurement Contract Updates and Renewals Creating Contract Releases Enhancement Discussion Key Takeaways Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 4

6 PeopleSoft Total Contract Management Procurement Contracts Part of Core Purchasing Focuses on execution of contract Captured negotiated pricing and terms Generates and tracks contract Release information Available for all releases Supplier Contract Mgmt Separate License Focuses on Document side of Contract Facilitates structured clause library, rulesbased authoring, approval workflow Supports collaboration, digital signature, SLA s and doc repository with searching Integration across the Procure-to-Pay Suite Purchasing, eprocurement, Strategic Sourcing, Payables, etc Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 6

7 Enforce Contract Compliance Integrated Procurement and Supplier Contracts Notifications* and Renew Create Procurement Contract Transaction Automatically Reference Contracts on Transactions Author Document and Establish SLA s* Create Req s and PO s Approve and Sign Contract * * Additional Capabilities with Supplier Contracts Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 7

8 Value and Benefits PeopleSoft Procurement Contracts Capture line items and optionally price adjustments to maintain and enforce contract specific pricing Change tracking and versioning provides renegotiation collaboration and full audit trail Automatically reference selected contracts on Requisitions and PO s Enforce contract usage within valid dates, with automated date notifications Flexibility to allow either Item Master or Contract to be price source-of-truth Not to exceed amounts and quantities automatically enforced Amount thresholds allow negotiation opportunities for better terms Supplier Rebates may be used in combination with or separately Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 8

9 Procurement Contracts Enforce Price Compliance Requests and Orders Contract Compliance Users create requisitions / purchase orders Users do NOT need to be aware whether contract exists System automatically defaults most valid procurement contract Or user may manually select contract on transaction Purchase order automatically uses contract price Monitor off-contract spend and contract leakage Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal 9

10 Enforce Compliance, Reduce Risk, Improve the Bottom Line PeopleSoft Supplier Contract Management Draft Contract Collaboration and Approval Execution Standardize Contract Processes Reduce Time-to-Contract Drive Contract Compliance Monitor Renew Central Clause Library Rules-based Template MS Word Integration Metadata Fields Collaborative Authoring Service Level Agreements and Management Approval Workflow Digital Signature Executive Summary Related Documents Version Control Related Documents XMLP Reports Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 10

12 Specify Contract Options Contract and Vendor Rebate Controls Required for each Contract SetID New for Release Use Contract Version Control? 2. Track Changes? Capture Reason Code with changes? And selection of Change Template Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 12

13 Select User Contract Authority User Preferences Specify default status and authorizations New for Release New Version Authority 2. Default Contract Process Option 3. Default Display Options Note: If you want users to be able to cancel contract lines on New Versions of the contract, select Cancel Contract Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 13

14 New Contract Defaulting Controls Purchasing BU Definition New for Release 9.1: 1. Automatically Default Contract onto Requisitions? 2. Automatically Default Contract onto Manually created / updated PO s? Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 14

15 Automatically Track Changes on Approved Contracts Procurement Contract Change Tracking Identify Trackable fields using configurable change template structure Optionally track changes on Draft Version All New for Release 9.1 Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 15

16 Role-Based eprocurement Contract Visibility eprocurement Role Actions REQ_CNTRCT_INFO Controls the display of contract information on line details VIEW_CONTRACT Controls whether contract icon displays on search results page New for Release 9.1 Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 16

17 Configurable Auto Contract ID Assignment Procurement Contracts Auto Numbering Select Prefix Specify Max Length Available per Set ID No longer need 25 digit contract ID! New for Release 9.2 Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 17

18 Program Agenda Total Contract Management Overview Procurement Contracts Initial Setup Creating Procurement Contracts Procurement Contract Updates and Renewals Creating Contract Releases Planned Enhancements Key Takeaways Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 18

19 How do you Plan to Use the Procurement Contract? Procurement Contracts Contract Process Options Contract Process Option Release Type Purchase Order Release to Single PO Only Recurring Voucher Recurring PO Voucher General Procurement Releases Procurement Releases Voucher Releases Voucher Releases (with PO for KK only) Procurement AND Voucher Releases Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 19

20 Suggestions for Getting Started Procurement Contracts Note new separate Procurement and Supplier Contracts folders. Check security 1. Contract Process Option 2. Supplier 3. Expiration Date 4. Renewal and Approval Due Dates (new for Release 9.1) 5. Corporate vs. Non- Corporate Contract 6. Auto Default (new for R9.1) 7. Allow Open Item Reference Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 20

21 Suggestions for Getting Started Procurement Contracts Defaults and Non-Corporate Contracts PO Defaults are used for Specifying defaults to use for manually created contract releases or when copying a contract onto a PO, and / or Specifying the Business Units applicable for Non-Corporate Contracts Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 21

22 Identify Items / Services to Associate with Contract Purchase Order Contracts Line Item (Item ID or order by description) Item ID on PO and Requisition must match that on contract, or manually select order by description contract line on PO or Req Contract by Category Category of Item on Req or PO matches that of Contract Category Open Item Reference ANY item ordered from vendor can reference contract May use one or a combination on any contract Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 22

23 Suggestions for Getting Started Procurement Contract Lines and Categories 8. Line Information Line Item Order by Description Amount Only Milestones 9. Contracts by Category (new for Release 9.1) Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 23

24 Suggestions for Getting Started Procurement Contracts Line Details Specify Minimum / Maximum Amounts / Quantities Want to use Contract specific price? 1. Check Use Contract Base Price 2. Enter contract price is Base Price field Otherwise, transactions will use Item Supplier Price Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 24

25 Suggestions for Getting Started Procurement Contracts Thresholds* and Notifications 10. Worklist / WorkCenter notifications: Specified # of days before contract expires Specified amount or percentage from contract maximum amount New for Release 9.1 Renewal and Approval Notifications Multiple Notification Assignments Notifications available for All Users * Amount Threshold notifications available with Supplier Contract Management license Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 25

26 Suggestions for Getting Started Bonus Step Procurement Contracts SLA s (available with Supplier Contracts) Establish Service Level Agreements (SLA s) with verification steps at header and / or line Assign tasks to internal users and suppliers Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 26

27 Suggestions for Getting Started Procurement Contracts SLA Notifications (available with Supplier Contracts) Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 27

28 Suggestions for Getting Started Procurement Contract Save Contract Now Ready for Document authoring Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 28

29 Suggestions for Getting Started Supplier Contract Management Document Authoring Click Add Document from Procurement Contract, initiates Create Document process Select Configurator or step through Configurator Wizard Create Document steps user through wizard Alternatively, initiate document from purchase order, sourcing event, or create adhoc Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 29

30 Suggestions for Getting Started Supplier Contract Management Document Authoring Respond to wizard questions Drives inclusion of clauses, rules and content within document Option to save for later Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 30

31 Suggestions for Getting Started Supplier Contract Management Document Authoring Document Management Central page for managing all document related activity Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 31

32 Suggestions for Getting Started Supplier Contract Management Document Authoring Document is built in *XML within MS Word Document is automatically checked out Optionally update doc: Redline content Add clause from PA clause library Save document to directory Check back in using same or different version Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 32

33 Suggestions for Getting Started Supplier Contract Management Document Authoring Add and Edit text Search for and add clauses directly from within Microsoft Word Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 33

35 Suggestions for Getting Started Procurement Contracts Versioning and Change Tracking Create different Versions over life of Contract History Current Draft Option to create forward looking version Users choose when to create new Version. Current version must be approved to create new. Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 35

36 Suggestions for Getting Started Procurement Contracts Versioning and Change Tracking If Change Tracking is enabled and Reason Code is required on the Set Control Contracts page, user will be prompted to enter a reason code when creating a new Version Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 36

37 Suggestions for Getting Started Procurement Contracts Versioning and Change Tracking Draft version available for editing while Current version is still available Option to Cancel Lines on Draft Version (new for Release 9.1) Approving Draft version converts it to Current version, prior Current version becomes History Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 37

38 Suggestions for Getting Started Procurement Contracts Versioning and Change Tracking When using Change Tracking, changes are automatically tracked Tracking available on Approved and Draft Contracts Change History Review accessible from Contract Header or Menu Navigation Wide range of search criteria to locate specific changes Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 38

40 Creating and Tracking Contract Releases Procurement Contracts What is a Contract Release and a Contract Event? In PeopleSoft, a Release is the association of the contract to a purchase order, or contract to a voucher and is communicated to the supplier Internally, releases are referred to as an Event. Events are created anytime a requisition, purchase order or voucher references a contract. The association between the contract and PO, and contract and requisition, occurs at the Line Tracking Releases Purchase order line reference to contract creates incremental contract release number Contract ID, Contract line number, and Release number is unique identifier Tracking Subsequent Releases for Single PO Contracts Additional releases after PO dispatch create change order Dispatched PO communicates new release information to Supplier Change Order History component displays release information Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 40

41 Contract Eligibility Rules Procurement Contracts Contract process option must be Purchase Order, General, or Single PO Contract is Approved If using Contract Versioning, refers to Contract Current and Approved Version (new for Release 9.1) Contract supplier matches transaction supplier The Requisition or PO Date must fall within the contract Begin and Expiration dates Non-corporate contract is set up for the transaction business unit Item Eligibility: Transaction Item ID matches that on contract, or Transaction Item Category matches that on contract category reference, and item is not listed as exception (new for Release 9.1) or Contract allows for Open Item Reference Contract Maximum Amounts and Quantities will not be Exceeded Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 41

42 Contract Defaulting Rules Procurement Contracts If the Auto Default option on the contract is NOT selected, contract will NOT automatically default onto transactions regardless of whether the item or the category has exact match. (new for Release 9.1) System then sorts all valid contracts by date, using most current Contract begin date. System determines type of contract reference: Item, ad hoc, category, or open item 1. First look for matching Item ID on contract, or 2. Next look for matching Contract Item Category, and item is not listed as exception (new for Release 9.1), or 3. Finally, Contract allows for Open Item Reference Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 42

43 Once an Eligible Contract is Found Procurement Contracts Determine base price System uses Item Contract Base Price if specified on Contract Otherwise, uses Item / Vendor price Calculate Price Adjustments Price adjustments can be defined for Contract, Item / Vendor, or both Update Contract Released Amounts and Quantities Released Amounts and Categories stored on separate table (new for Release 9.1) Create Contract Event and/or Release Events are the association of contracts referenced on purchase orders. Also referred to as Releases Contract Events available for inquiry References Current Contract Version (new for Release 9.1) Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 43

44 Suggestions for Getting Started Referencing Contract on Requisition eprocurement Role-action option to display Contract indicator in search results Click in to view available contracts and details 2 Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 44

45 Suggestions for Getting Started Referencing Contract on Requisition New for Release New BU option to automatically default contract on to Requisition (prior to Release 9.1, contract could be manually selected on requisition or defaulted through PO Sourcing) 2. Advanced Contract Search helps identify most appropriate contract 3. Requisition price recalculated based on Contract / Item Vendor Price 4. Option to use contract on PO even when forcing requisition price Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 45

46 Suggestions for Getting Started Creating a Purchase Order Release View Contract Information and Release Number on PO Line New for Release 9.1 New BU option to automatically default contract on to new / updated Purchase Orders (prior to Release 9.1, contract could be manually selected or populated through PO Sourcing only) Advanced Contract Search helps identify most appropriate contract Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 46

47 Suggestions for Getting Started Advanced Contract Search on Requisitions and Purchase Orders View contract details to help identify most appropriate contract: Contract Reference Type Remaining Amt / Qty Master Contract Contract Process Option Begin / Expire Dates Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 47

48 Suggestions for Getting Started PeopleBooks Procurement Contracts located in the Source-to- Settle Common Information folder Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 48

50 PeopleSoft Procurement Investment Priorities Customer and market needs driving PeopleSoft investments Extend value of eprocurement with Integrated Marketplace Content Increase user adoption with Responsive Design Patterns (Fluid User Interface) Improve vendor administration with complete Supplier Lifecycle Management solution Automate compliance and lower costs with Total Contract Management visibility and oversight Mobility for on-the-go Procurement Manage change on your own terms via the new PeopleSoft Update Manager Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Restricted 50

51 Reduce Overhead of Managing Sourcing Activities RFX Document Authoring Release 9.2 Initiate Contract Document during solicitation process Bidder reviews document and optionally redlines Document carries forward to awarded Contract or PO Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 51

52 Find Supplier Contracts Faster Document Repository SES searching in Release 9.2 Search Clauses, Sections, Documents, Configurators Search all Source Transactions Includes Procurement Contract attributes Filter Search Results with Secure Enterprise Search (SES) Facets Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 52

53 PeopleSoft Total Contract Management Planned Procurement and Supplier Contracts enhancements create game changing solutions New Supplier Contract Workbench Sourcing and Contract WorkCenter Manufacturer and Distributor Contracts Item / Contract Load and Maintenance Leverage Contracts for Punchout Items Release Amounts based on Payments Master Contract Enhancements and Hierarchy Master Service Agreements Usability Improvements ShipTo Pricing Many More Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 53

54 Address Tactical and Strategic Contract-Related Challenges Supplier Contracts Workbench Our Vision 360 degree view of contract processes with visual activity lifeline and drilldowns Centralize contract tasks for improved usability and insight View All Procurement and Supplier Contract related information on one page Meet the needs of multiple users across the line of business Supports Project Procurement requirements for public and private sector Supplier Administrator The Legal Team Financial Approver Procurement Buyer Contract Administrator Sourcing Buyer Technical Collaborator Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 54

58 Centralize User Tasks Related to Advanced Procurement Sourcing & Contracts WorkCenter and Dashboard Alerts and Notifications Thresholds and Expiring Contracts SLA Compliance Document collaboration, approval and signature routings Link directly into related transaction set Transaction and Document Visibility Access to Supplier Contract Workbench Links to Documents and Transactions Summary Visibility Reports and Queries Release Amount and activity across selected contracts Contract and Sourcing Pivot Grids and pagelets Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 58

60 Consolidated Views across Multiple Procurement Contracts Master Contract Enhancements Across one or across Multiple Suppliers Visibility into related procurement contracts Rollup of spend across all Procurement Contracts Threshold Notifications against spend rollup Miscellaneous attributes (ex. comments) Supplier Contract s Document Authoring Service Level Agreements Visual Hierarchy Master Contract Contract 1 Contract 2 Contract 3 Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 60

61 Improve Contract Price Compliance Procurement Contract Enhancements Negotiate Pricing Request Goods and Services Receive Order and Services Pay Supplier Procurement Contracts Match for Punchout and Marketplace Items New Price Discrepancy Report Flexible PO Sourcing Options for Requisitions with Assigned Contracts Contract Spend and Usage Analytics Contract Load and Maintenance Utility Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 61

62 Accurately Track and Enforce Contract Release Amounts Maintain Payment Release Amounts against Procurement Contracts Challenge Contract maximums are typically based on the final paid amounts, yet the Procurement Contract released amounts are based on the purchase order Proposed Solution As purchase orders are paid, track paid released amounts against contract Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 62

63 If you Don t Need It, You Shouldn t Have to See It Procurement Contract Usability Improvements New Options to Hide Non-Used Features: Default Contract Process Option Price Adjustments Header Defaults Open item, Line item, Category usage Non-Corporate Contracts Tax information Line Defaults Advanced pricing options Release schedules Milestones, amount only Others to be defined Default to use Contract price Direct link between price and price adjustments Separate Non-corporate option from BU defaults Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 63

64 Negotiate and Enforce Supplier Agreements Establish Master Service Agreements with suppliers with integrated document authoring, redlining and electronic signatures Enforce supplier compliance with automated Service Level Agreements Maintain up-to-date profile and diversity attributes via configurable data capture and notification tools Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 64

65 Verify Contracts Electronically Supplier Contracts esignatures Capture signatures on mobile devices Store captured signatures in the cloud Device independent Add additional signatures on the fly Reduce dependence on IT Standardize digital signature tools Planned integration with EchoSign Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 65

67 Total Contract Management Key takeaways PeopleSoft Procurement and Supplier Contracts help enforce compliance and reduce spend Continued investment focused on needs of customers and specific industries Innovative solutions round out PeopleSoft s Best-in-Suite Procure-to-Pay process Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 67

68 For More Information The PeopleSoft Information Portal All your PeopleSoft information and training resources in one convenient location. Copyright 2014 Oracle and/or its affiliates. All rights reserved. 68

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