Steps: Create Supplier Contracts

Steps: Set Up Suppliers

Create supplier contracts for goods and services, enabling you to take advantage of supplier discounts and ensure that the:

Contract total of the supplier invoice lines doesn't exceed the total amount of the supplier contract.

Dates for purchase orders and supplier invoices occur within the contract date range.

Access the

Maintain Supplier Contract Types

task.

Add rows for each supplier contract type and select the options you need. Select either Scheduled Invoices
or Manual Invoices
. As you complete this task, consider:

Option	Description
Scheduled Invoices	Creates invoices for scheduled installments. Select when Supplier Contract Lines includes spend categories with the Intangible asset tracking option.
Scheduled Purchase Orders	Creates purchase orders for scheduled installments for goods lines in supplier contracts. You can’t create supplier contract types with scheduled purchase orders for service lines or project-based service lines. Workday Distributes scheduled purchase orders by Quantity .
Manual Invoices	Creates manual invoices to apply against supplier contracts. Manual invoices enable you to generate: Invoices related to purchase orders. Invoices unrelated to purchase orders.
Manual Purchase Orders	Creates manual purchase orders to apply against supplier contracts.
Allow Catalogs	Links contracts to supplier contracts.
Receive Contract Lines	Applies receipts against contract lines. For contract types with Receive Contract Lines , Workday registers business assets and any associated depreciation schedules. Select this option when Supplier Contract Lines includes spend categories with the Intangible asset tracking option.
Create Obligations	Create obligations for commitment accounting on supplier invoices applied to supplier contracts.
Multi-Supplier	Adds a Suppliers tab on the supplier contract, enabling you to: Define suppliers to service the contract. Open the contract to any supplier that meets your criteria. The Markup Percent field on the Suppliers tab of the supplier contract enables you to set up contractual discounts or markups. For markup pricing, enter positive values. For discount pricing, enter negative values. Workday applies the markup percentage only to catalog and supplier items on supplier contracts.
Renewal Terms	Renews supplier contracts and contract lines automatically using the renewal terms you and your supplier define in the contract. You can't enable catalogs for supplier contracts with renewal terms.
Consignment	Adds the Consigned Quantity field to the goods lines of the supplier contract.
Multi-Participant	Maintains a shared contract between multiple companies. You can add companies as participants to the supplier contract on the Contract Participants tab. You can then use the contract on procurement transactions for those companies. Optionally, you can use the GPO Contract Reference field to maintain reference numbers for group purchasing contracts.
Financial Lease	Applies receipts and creates: Expense recognition Supplier invoice schedules Supplier invoice installments for leased assets.
Operating Lease	Creates: Expense recognition Supplier invoice schedules Supplier invoice installments for operating leases.
Short-Term Operating Lease	Creates expense recognition and supplier invoice schedules and installments for operating leases. You can use this lease contract type for operating leases where the term is 12 months or less.
Variable Payment	Creates lease type supplier contracts with lease payment amounts that vary throughout the lease term.
Allow Retention	Captures and tracks retention amounts on supplier contracts and purchase orders.

Security: Set Up: Supplier Contracts
domain in the Supplier Contracts functional area.

Access the

Create Supplier Contract

task.

You can save the supplier contract in

Draft

status before you submit it.

As you complete each section, consider:

Option	Description
Contract Reference	Specify the contract number that your supplier uses, when available.
On Hold	Restricts users from creating purchase orders or invoices against this contract.
Default Order-From-Connection	Populates the order-from connection and associated shipping information on purchase orders when you select the supplier contract. You can select from the prompt when you set up supplier order-from connections using the Edit Order-From Connections task.
Total Contract Amount	Enter an amount that is the same as or greater than the: Line Extended Amount for supplier contracts. Total Lease Payment for lease-type supplier contracts.
Override Payment Type	Overrides the default setting and creates a new payment type when you specify additional payment types on the supplier definition. This field only applies to scheduled invoice or scheduled purchase order type contracts.
Catalog	When you select Catalog Contract as the Contract Type , you can select more than 1 catalog to associate with the supplier catalog.
Contract Participants	This tab displays when you select a participant-type supplier contract from the Contract Type prompt. On this tab, add: Companies that participate in the contractual agreement. The company at the header to indicate the company as a participant of the contract.
Supplier Item Contract Pricing	This tab displays when you configure advanced pricing for the supplier contract on purchase items.