This section discusses how companies with global operations can manage clauses across multiple operating units. This feature is useful for companies that contract with customers across the globe with operations in different countries and locations. In this document, we refer to those operating units that have been set up to use the Contract Terms Library as operating units. For information on how to set up operating units, see the Setting Up Operating Units section.
A central entity can define global clauses and make them available for use by local operating units. To define global clauses, you must identify your global operating unit, usually the corporate headquarters. The designated global operating unit is responsible for the creation of clauses for business terms that must be enforced globally. On approval, the clauses are made available to local operating units. A workflow notification is sent to the local operating units that must review the clause.
In the local operating units, library administrators review the clause and decide whether it needs to be modified to meet local requirements. If necessary, the clause can be modified (localized) and routed for internal approvals. If not, the clause can be adopted with no changes or modifications and routed internally for approvals. Alternatively, local operating units can be set up to automatically adopt all global clauses.
After approvals, the localized or adopted clause is available for use in contracts that are created locally.
Prerequisites: for creating global clauses are:
Set up the OKC: Global Operating Unit profile option: This is a site level profile option to determine the operating unit that can create global clauses and contract templates. A check box to identify global type clauses and contract templates becomes available after you set up this profile option.
Create global clauses, in the global operating unit. For more information, see Creating Global Clauses in the Library.
Approve global clauses to make them available in local operating units.