Understanding Contract Binding

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If Oracle Procurement Contracts is implemented, contract binding provides the ability to require both the supplier and the buyer to sign off on the details of a purchase order before it can be executed. When you are creating the purchase order document, you can require that the supplier sign and accept the document. A notification is sent to the supplier requesting a signature to indicate acceptance after the purchase order is approved by any internal approvers. If the supplier accepts the document, you are sent a notification requesting your acceptance as well. Once both you and the supplier have accepted the purchase document, it is ready for execution.

Once the negotiation is closed for responses, you can award business to selected suppliers and subsequently initiate the purchase order/contract creation. You can optionally indicate whether acceptance is required for the resulting purchase order document. If you require acceptance, you have the choice of four levels :