Supplier Contracts

Overview

Supplier contracts enable you to deploy and manage your company procurement policies. With supplier contracts, you can:

Define preferred suppliers and supplier connections.

Analyze spend for better control and standardization.

Deploy contractual spend to negotiate better, enforce discounts and supplier terms.

You can define supplier contracts for a company or company hierarchy. You can specify goods and services directly on contract lines. You can also create supplier contract headers to tie to purchase items for tracking contract spend. The

Create Supplier Contract

business process handles the submission of supplier contracts.

Objectives

By the end of this chapter, you will be able to:

Explain supplier contracts within the Workday ecosystem.

Create supplier contracts.

List supplier contract types.

Describe supplier contract amendments.

Supplier Contract Header

Using the

Find Supplier Contract

task, notice the top section, also known as the View Supplier Contract header. This section displays spend against the supplier contract. You can view multidimensional information, such as the current amounts of supplier invoices and purchase orders.

By drilling into the amounts on the supplier header, you can review transactions that included the supplier contract. This snapshot provides an easy way to identify when a contract is running low on funds or when there might be a lag in invoicing against a contract.

Supplier Contract Types

Supplier contract types drive the functionality available off the contract and the fields required to create a contract. Note the below contract type options:

Option	Description
Scheduled Invoices	Creates invoices for scheduled installments.
Scheduled Purchase Orders	Creates purchase orders for scheduled installments for goods lines in supplier contracts.
Manual Invoices	Creates manual invoices to apply against supplier contracts and related POs.
Manual Purchase Orders	Creates manual purchase orders to apply against supplier contracts.
Allow Catalogs	Links catalogs to supplier contracts.
Receive Contract Lines	Applies receipts against contract lines.
Create Obligations	Create obligations for commitment accounting on supplier invoices applied to supplier contracts.
Multi-Supplier	Defines a list of suppliers to service the contract or open the contract to any supplier.
Renewal Terms	Renews supplier contracts and contract lines automatically using the renewal terms you and your supplier define in the contract.
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.
Financial Lease	Creates expense recognition and supplier invoice schedules and installments for leased assets.
Operating Lease	Creates expense recognition and supplier invoice schedules and installments for operating leases >12 months.
Short-Term Operating Lease	Creates expense recognition, supplier invoice schedules, and installments 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.

Supplier Contract Amendments

When you need to process a change against an approved supplier contract, you can create a supplier contract amendment. Each amendment will create a new version of the supplier contract. You can view each version of the contract in the Amendments tab. Supplier contract amendments process through the Supplier Contract Amendment event.

Supplier Contract Considerations

When a supplier contract is past its end date, you can no longer transact against the supplier contract. You are able to process an amendment to update to the end date. Supplier contracts do support custom objects and custom fields for extensibility.

You can integrate supplier contracts with Workday Strategic Sourcing. If you are expecting to pass supplier contract data between Workday Supplier Contracts and Strategic Sourcing, consult the materials on Workday Community for more guidance.