racle Procurement Contracts - creates and enforces better purchasing contracts t

hroughout the enterprise while functioning as a key component of Oracle Advanced

Procurement, the integrated suite that dramatically cuts all supply management
costs
Procurement contracts play a critical role in all businesses. Companies rely on
procurement contracts to define:
Specific products or services that they buy.
Contract terms governing their price, shipment, payment, quality, and other mutu
al obligations of the involved parties.
As we Know , Oracle Procurement supports the basic business processes of the pro
curement contract life cycle, whereas Oracle Procurement Contracts enhances the
ability of buying organizations to manage these stages by adding sophisticated c
ontract management and compliance features to Oracle Purchasing, Oracle Sourcing
, and Oracle iSupplier Portal.
The Process Flow
The following overview diagram illustrates the Oracle Procurement Contracts feat
ures that support the various stages of the procurement contract life cycle
Oracle Procurement Contract
Key Features
Oracle Procurement Contracts supports all the stages of a complete contract life
cycle. The key stages of the contract life cycle are:
cONTRACT lIFEcYCLE

Establish Contract Standards : You establish company-wide standards to manage yo

ur contracts by incorporating best practices that ensure all contracts are autho
red and executed based on approved legal and business policies and procedures.
Author Contracts : When you author contract terms, you leverage standard clauses
, templates, and business rules set up in the library to define contractual obli
gations driven by legal and business requirements.
Negotiate Contracts : In this phase i.e during negotiation,
you create sourcing documents, such as RFIs or RFQs, with draft contract terms.
Suppliers review, respond, and may suggest changes to the contractual terms.
After all parties have reached agreement, and all sourcing documents have been s
ubmitted, an award is made.
You track and archive all interactions with the prospective sellers for retrieva
l in case of disputes.
Approve and Sign Contracts :Next step is Approval .
For the contract approval and signature process, you specify and communicate the
guidelines to the concerned individuals in your organization, and you authorize
who can sign the contracts in your organization
Execute and Monitor Contracts :As you execute the contracts, you capture transac
tional data to enforce the agreed upon contract terms.
The contracts are monitored to ensure that the contractual obligations, as defin
ed in the contract terms, are fulfilled. Alerting and escalation mechanisms are
defined and adhered to.
Administer Changes :You define a formal contract change request process for your
organization and the supplier community.
Take a note , Amendments to contract terms are routed to designated individuals
for approval. You keep track of the changes for audit trail purposes.
Renegotiate and Close Out Contracts :After all contractual obligations have been

fulfilled or the contract has expired,

you can renegotiate the contract to obtain optimal market pricing, or you can de
cide to close out the contract.
Search Contracts : The Enterprise Contracts Search feature enables you to search
for keywords and text in structured data (such as contract terms) and unstructu
red data (such as text contained in attached documents).
The search is performed for Oracle Purchasing, Oracle Sourcing, and Repository C
ontracts.
To support the Contract Lifecycle, Procurement Contracts has following key compo
nents:

Contract Terms Library

Contract Terms maintenance and approval
Deliverables
Contract Expert
Contracts Repository
Is Procurement Contract a separate module
Yes, This is seprate Module and Implementaion required some additional products
For all the features to function properly, Oracle Procurement Contracts requires
installation and implementation of the following modules:
Oracle Purchasing: PO Module provides the backbone to author, approve, amend, co
mmunicate, and print contracts.
Oracle Contracts: This module provides contract terms library, contract document
attachment, and contract terms authoring capabilities.
Oracle General Ledger: Basic setup for accounting come from here and enables set
up of ledgers and books.
Oracle Human Resources: HRMS provides organization setup information.
Oracle Workflow: This Module Provides notifications related to approvals of clau
ses, templates, and contracts.
Oracle XML Publisher: Provides information on setting up and using RTF and PDF t
emplates that are used to preview and print contracts and contract templates.
The following conditional dependencies provide additional functionality but are
not required for Oracle Procurement Contracts to function:
Oracle Sourcing: Provides complete contract terms negotiation capabilities.
Oracle iSupplier Portal: Allows suppliers to view contract terms and request cha
nges.
Oracle E-Record: Provides electronic signature capabilities to Oracle Procuremen
t Contracts.
In Summary:
Procurement Contracts is a powerful tool that allows you to automate your Contra
ct Management process and seamlessly integrate it with your Procurement process.

Standardise your process

Enforce policies
Eliminate sub-optimal contracts
Reduce exposure to unnecessary risk
Streamline your processes
Simplify contract creation
Streamline approvals
Streamline management of contracts

Allow your users to Comply with Flexibility

Visibility into contracts for key stakeholders
Enforce contract pricing and terms
Track internal and external compliance
Report
All your information is in a single repository
Management reporting
Operational reporting

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