Use the Terms and Conditions window to enter terms, conditions, and control information for purchase orders. Discussed in this section are:
Purchase Order Terms
Agreement Controls
Contract Terms
Encumbrance Controls
To enter purchase order terms information:
Navigate to the Terms and Conditions window by selecting the Terms button in the Purchase Orders window.
Enter the Payment terms for the purchase order. Purchasing displays default payment terms that you can accept or change. See: Defining Payment Terms.
Enter the Freight terms for the purchase order. Purchasing displays default freight terms that you can accept or change. See: Defining Lookup Codes
Enter the freight Carrier for shipment of the purchase order. Purchasing displays a default freight carrier that you can accept or change. See: Defining Freight Carriers.
Enter the FOB point for the purchase order. Purchasing displays a default free on board (FOB) designation that you can accept or change. See: Defining Lookup Codes.
Optionally select a value in the Pay On field to enable or disable Payment on Receipt for this document.
Receipt is defaulted in this field if the supplier site is set up as a Payment on Receipt site in the Supplier Sites window. Receipt means that Payment on Receipt will automatically generate an invoice for this purchase order.
Select Null if you do not want Payment on Receipt to automatically create an invoice for this document. If the supplier site is not set up as a Payment on Receipt site, this field is disabled, and you cannot change it. See: Payment on Receipt.
You can update the Pay On field again on a release (if the supplier is a Payment on Receipt site).
Select the Acceptance Required method. If you select a method, you can enter the due By date, when you require the supplier to return an acceptance for your purchase order. See: Entering and Viewing Purchase Order Acceptances.
Document only: Acceptance is entered for the entire document.
Document or Shipment: Acceptance is entered for the document or for individual shipments.
Document and Signature: If Oracle Procurement Contracts is implemented, acceptances are entered for the entire document with a signature. This method causes the approved document to have a status of Pre-Approved until signatures are completed.
Select Confirming Order to indicate that the purchase order is a confirming order. A confirming order is an order that you are submitting formally to confirm a verbal order already placed with the supplier. For confirming orders, Purchasing prints the following on the purchase order header: This is a confirming order. Do not duplicate.
Select Firm to indicate that the purchase order is firm. Firm your purchase order when you want to indicate to Master Scheduling/MRP or your manufacturing application that it should not reschedule this purchase order shipment.
Select Supply Agreement if you want Oracle Supplier Scheduling to communicate releases against this blanket purchase agreement to suppliers.
Supplier Scheduling can communicate releases against a blanket purchase agreement only when this option is selected.
If Oracle Transportation is implemented, select the party responsible for transportation from Transportation Arraigned. See: Oracle Transportation Overview, Oracle Transportation User's Guide.
Enter a Supplier Note and a Receiver Note. You can enter up to 240 characters in these fields.
Note: If you are entering a release , the remaining fields in this window are displayed from the original agreement and can not be updated.
To enter purchase agreement information:
Click Terms in the Purchase Orders window to navigate to the Terms and Conditions window.
For planned purchase orders, blanket purchase agreements, and contract purchase agreements, enter the Effective start date for the purchase order. A starting date is necessary if you are using a warning delay on notification controls. You cannot associate a purchase order line with a contract that is not yet effective. You also cannot create a release with a creation date that is before the corresponding blanket purchase agreement or planned purchase order effective date.
For planned purchase orders, blanket purchase agreements, and contract purchase agreements, enter the Effective expiration date for the purchase order. This date must be later than the start date and later than any existing releases. You cannot associate a purchase order line with a contract that has expired. You also cannot create a release with a date that is after the corresponding blanket purchase agreement or planned purchase order expiration date.
For planned purchase orders, blanket purchase agreements, and contract purchase agreements, enter the Amount Limit (for the total of all releases) and the Minimum Release Amount that can be released against this purchase order. For blanket and contract purchase agreements, the Amount Limit must be equal to or greater than the Amount Agreed. Enter Effective from and to dates to limit the agreement controls by time.
For blanket purchase agreements, enter a Price Update Tolerance only if you are importing price/sales catalog information through the Purchasing Documents Open Interface.
The Price Update Tolerance specifies the maximum percentage increase allowed to an item's price on this blanket purchase agreement when your supplier sends updated price/sales catalog information through the Purchasing Documents Open Interface. This field affects only blanket purchase agreements imported through the Purchasing Documents Open Interface. See: Setting a Price Tolerance in a Price/Sales Catalog Update.
If you have implemented Oracle Procurement Contracts; you can view and maintain contract clauses, supporting documents, and deliverables using that product. Oracle Purchasing provides access to these features, as well as the ability to view all contract content and their ammendments in the PDF version of the purchase order and from the Change History window. See: Viewing Purchase Order Changes.
To enter contract terms information (Oracle Procurement Contracts):
Click Terms in the Purchase Orders window to navigate to the Terms and Conditions window.
Note: See the online help in the Oracle Procurement Contracts windows for information regarding their use.
If Oracle Procurement Contracts is implemented, click Author Contract Terms to add contract clauses and deliverables to this purchase order.
Click Manage Contract Documents to add or maintain documents supporting the contract information for this purchase order.
Click View Contract Terms to view contract clauses and deliverables.
Click Update Deliverable Status to enter status information for the contract deliverables associated with this purchase order.
To enter encumbrance information:
Click Terms in the Purchase Orders window to navigate to the Terms and Conditions window.
If you have encumbrance turned on, select the Encumbrance tabbed region.
You can encumber a blanket purchase agreement by checking the Encumber box. See: Budgetary Control and Online Funds Checking
Select the encumbrance Budget Account.
Enter the GL Date for this encumbrance reservation. This date must be in an open Purchasing period.
Enter the Amount to Encumber.
For Oracle Public Sector customers that have the USSGL profile option enabled, select the Transaction Code.