Enterprise Contracts

Oracle Fusion Enterprise Contracts Management

April - 2016 Release 10
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Disclaimer
The following is intended to outline our general product direction. It is intended for information purposes only,
and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or
functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing
of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

About This Document

This document supplements standard product documentation, which you are encouraged to review. To find
documentation, such as guides, click Help and search for topics.
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AUDIENCE
This document is for Oracle Sales Cloud customers involved in implementation, and the information applies to
both Oracle Public Cloud and on-premise deployments.

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Table of Contents:
Introduction .................................................................................................................................................. 3
Implementation Setup Steps: ....................................................................................................................... 4
1. Configure Offerings ........................................................................................................................... 4
2. Create Implementation Project ........................................................................................................ 4
3. Business Unit Creation ...................................................................................................................... 5
4. Business Unit Setup For Contracts .................................................................................................... 6
5. Party & Contact Roles ....................................................................................................................... 8
6. Managing Contract Types ................................................................................................................. 8
7. Line Types.......................................................................................................................................... 9
8. Terms Library Setups....................................................................................................................... 10
I. Setups in Functional Setup Manager .......................................................................................... 10
II. Setups in Terms Library Work Area ............................................................................................ 13
Contract Security Setup: ............................................................................................................................. 18
Approval Setups: ......................................................................................................................................... 20
1. Contract Approval Setup ................................................................................................................. 20
I. Auto Approval: ............................................................................................................................ 20
II. Serial Approval: ........................................................................................................................... 21
III. Parallel Approval: .................................................................................................................... 24
IV. Parallel Approval with First Responder:.................................................................................. 26
2. Clause Approval Setup .................................................................................................................... 31
3. Terms Template Approval Setup .................................................................................................... 34
Clause Adoption & Localization: ................................................................................................................. 36
1. Clause Adoption: ............................................................................................................................. 36
2. Clause Localization: ......................................................................................................................... 41
Usage of Global Terms Template to Local Business Unit:........................................................................... 43
Contract Fulfillment: ................................................................................................................................... 45
Extending Contracts to Add Custom Fields ................................................................................................. 49

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Introduction
This document describes a Contract within Oracle Sales Cloud & explains steps to implement Enterprise Contracts
& few common user flows within contract which we come across during the daily usage of contract module.
It has been created & updated as per the working in release 10.

Let’s get started with a few questions that help to understand contracts and know few terminologies that are most
commonly used in contracts.

What is a Contract?
A written agreement which may be concerned to employment, sales, service or support that is intended to be
enforced in accordance between any two parties.
To sign a contract is to enter into a formal and legally binding agreement.
Or
A contract is a business object that is used to capture the terms and conditions of a legally binding or valid
agreement between two or more entities in which there is an offer and an acceptance of that offer

In the world of business, contracts are used for establishing business deals and partnerships. The parties involved
in the business engagement decide the type of the contract.
Usually, the type of the contract used for the business engagement varies depending on the type of the work and
the nature of the industry.
The contract is simply an elaborated agreement between two or more parties. One or more parties may provide
products or services in return to something provided by other parties (client).

What is the Intention while creating a contract in fusion?

A contract is generally created with below intentions
 Sell Contract / Customer Contract / Project Contract
 Buy Contract / Supplier Contract / Procurement Contract

Nature of a contract:
Project contract
Purchasing contract
Simple nondisclosure agreement
Employment agreement

Contract Type Class: Indicates the category of the contract you are authoring:
 Agreement:
Used for negotiating a future purchase of goods and services.
 Enterprise Contract:
Used for authoring both buy and sell contracts where you are buying or selling items and services now.
Examples of contracts of this class include contract purchase agreements, project contracts, and repository
contracts.
 Grant
 Partner Agreement:
Used exclusively for Oracle Fusion Partner Management.

Contract Line:
A contract line is an entitlement to a specific valuable consideration with its own terms and conditions, which
businesses offer to their customers as part of a contract. Zero, one, or many contract lines can be associated with
any given contract.

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Implementation Setup Steps:
Prerequisite:
To start an Oracle Fusion Applications implementation, you must set up one or more initial users using the super
user that was created during installation and provisioning of the Oracle Fusion Applications environment, or using
the initial administrator user provided by Oracle for Oracle Cloud implementations.

1. Configure Offerings
The first implementation step is to configure the offerings in the Setup and Maintenance work area by selecting
the offerings and options that you want to make available to implement.

For the Contracts offering, you can select the following options:
• Procurement Contracts
• Sales Contracts

2. Create Implementation Project

Navigator -> Setup & Maintenance -> Implementation Project
Create a New Project and in the Offerings choose to include Enterprise Contract (Procurement & Sales Contracts)
This should generate a task lists for each project as per the included offerings.

The generated task list for this offering contains the following groups of tasks:
• Define Common Applications Configuration for Contracts
• Define Contracts Common Configuration
• Define Procurement Contracts Configuration
• Define Sales Contracts Configuration
• Define Contract Terms and Clause Library Configuration
• Contracts: Define File-Based Data Import
• Manage Bulk Data Export
• Define Transactional Business Intelligence Configuration
• Define Extensions for Contracts

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 3. Business Unit Creation
We can setup the business units (BU) using the below task:
Manage Business Unit
We can create a new or edit an existing BU using the task.
Using this task also we can Assign Business Functions & Manage Set Assignments.

For Implementing Enterprise Contracts for a particular BU we need to have the Customer Contract Management &
Procurement Contract Management enabled a below:

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 4. Business Unit Setup For Contracts
The most important setup of a contract is to setup via the below tasks that is configurable for each BU used in the
contract.
Specify Customer Contract Management Business Function Properties: For Sale Type Contracts
Specify Supplier Contract Management Business Function Properties: For Buy Type Contracts

Using the tasks we can setup the business unit properties such as below for each business unit enabled for
Enterprise Contract.
 Enable related Accounts
 Currency Conversion
 Project Billing
 Terms Library Setup such as:
i. Global Business Unit
ii. Enable clause and template adoption
iii. Clause Numbering
iv. Contract Expert
v. Layout Template
vi. Specify the Contract Terms Library administrator

The scope of these tasks i.e., the business unit in question for whom the above parameters are being set can be
chosen by the “Selected Scope” field on the task.

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What are Global Business Unit and Local Business Unit?
The choice of a business unit while creating many Contract Terms Library objects restricts where you can use these
objects. Objects affected include Terms Library components such as clauses, contract terms templates, and
Contact Expert rules.

Objects created in a local business unit can only be used in that local business unit.
While objects created in a global business unit can be adopted or copied over to other business units provided
they are specified as global.

We can setup one of the business units in the organization as a global business unit by selecting the
“Global Business Unit” option in setup Step 4. If you are setting a BU as Global Business Unit and a BU has already
been setup as Global BU then the system gives an error that we have already setup another business unit as global.

How to Define Document Sequences for Contracts & Clauses?

Navigate to Define Contracts Common Configuration > Define Document Sequences and open the “Manage
Document Sequence Categories” task.
Search for the document sequence categories of the Enterprise Contracts module.
Below are the document sequence categories Tables to be chosen:
Contracts: OKC_K_HEADERS_ALL_B
Clause: OKC_ARTICLES_ALL
Application & Module should be “Enterprise Contracts”

Once the Document Sequence Categories are setup go ahead with “Manage Document Sequences” task.
When creating document sequences, use the following values:
Application & Module should be “Enterprise Contracts”
Type: Automatic
Determinant Type: Global, Business unit, Ledger (if a primary ledger has been assigned to the business unit)
Automatic Sequencing: Automatic document sequencing assigns a unique number to each document as
it is generated, and this unique number is stored in the database. The numbering is sequential by date
and time of creation. If you define a sequence to automatically number documents, you can provide an
initial value to begin the sequence. In absence of a custom value, the default value 1 is used.
Manual Sequencing: Manual sequencing requires you to assign a unique number to each document
before it is generated. In manual sequencing, the numerical ordering and completeness of a transaction
is not enforced. Users can skip or omit numbers when entering the sequence value. However, each time
that a number is assigned, the application validates its uniqueness.
Gapless Sequencing: Gapless sequencing is similar to automatic sequencing. It automatically generates a
unique number for each document, but does that only for successfully generated documents. As a
result, the sequence is maintained for all the documents that are generated, and no sequence numbers
are lost due to incomplete or failed document generation.

Additionally, you can control the gapless document sequencing by enforcing the Transaction Date Validation
option. When enabled, this option checks for the transaction date of a particular document and assigns the
sequence number accordingly, to maintain the chronological order in which the documents are created and
assigned sequence numbers. The sequence numbers and the transaction dates are chronologically correlated to
prevent any mismatch of a new document sequence being assigned to an older document or vice-versa.

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 5. Party & Contact Roles
Contract Party Roles:
Contact roles specify the roles that party contacts play in the contract.
For example, a sales contract may include the customer, a partner, and the internal business unit selling the
product and service.
The application comes with predefined party roles, but you can create additional roles and specify how the roles
are used in sales, purchasing, and project contracts.

These Party Roles are defined in the Look-Up Type: OKC_PARTY_ROLE

We can set this look up type by the below options:
• Navigator -> Setup & Maintenance -> Task: Manage Contract Party Roles
• Navigator -> Contracts -> LHS Under Setup -> Party Roles

Party Roles can be made available by selecting the task “Party Role and Contact Sources” in Contract Area and
associating a role to the party source or use the task “Manage Contract Role Sources” in Setup & Maintenance
AND
Add Party Role to the Contract Type in the task “Contract Types”

Party Contact Roles

Contact Roles specify the role played by users or contact in the contract.

These Party Contact Roles are defined in the Look-Up Type: OKC_PARTY_CONTACT_ROLE
We can set this look up type by any of the below options:
• Navigator -> Setup & Maintenance -> Task: Manage Contract Contact Roles
• Navigator -> Contracts -> LHS Under Setup -> Contact Roles

Contact Roles can be made available by selecting the task “Party Role and Contact Sources” in Contract Area and
associating a role to the party source or use the task “Manage Contract Role Sources” in Setup & Maintenance.

We can make an entry for each of the party roles where we want the contact role to be available.
The contact sources depend on the party source settings for the party role.

6. Managing Contract Types

A contract type is a mandatory entry while creating any contract in the system that defines the nature or type of
contract we are creating.
By nature as explained initially it can be as below:
Project contract
Purchasing contract
Simple nondisclosure agreement
Employment agreement

A contract type typically suggests what kind of details we can enter in a contract.
 Enable Lines & Line Types
 Parties
 Additional Party Roles
 Party Contacts
 Electronic signature
 Specify document numbering sequence for contract numbering

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  Contract Expiry Notifications
 Layout templates used for printing Contract & Contract Terms
 Enable terms authoring
 Enable risk management
 Enable related contracts
 Fulfillment Notifications for Purchase Contracts
 Specify Billing options for Project Contracts

A contract type can be setup by any of the following options:

• Navigator -> Setup & Maintenance -> Task: Manage Contract Types
• Navigator -> Contracts -> LHS Under Setup -> Contact Types

7. Line Types
Line types are names we give to the contract lines.
We must associate each line type name with one of the fixed set of predefined line sources. A line source
determines what item you can enter in a contract line and enables functionality of one of the integrated
applications to that line.
For example, project line sources expose Oracle Fusion Projects fields in contracts and make it possible for contract
authors to relate lines to projects. Buy sources make it possible to create contract deliverables for the line and use
those contract deliverables to create and manage purchase orders and purchase agreements in Oracle Fusion
Purchasing or other integrated purchasing systems.

The line types permitted for a contract type is based on the class we have selected for the contract type and it is
configurable only if “Allow Lines” option is enabled during the contract type creation.
The Line types can be setup by any of the following options:
• Navigator -> Setup & Maintenance -> Task: Manage Contract Line Types
• Navigator -> Contracts -> LHS Under Setup -> Contact Line Types

Below can be the allowed line types in the system:

• Buy agreement, free-form
• Buy agreement, item
• Buy intent, free-form
• Buy intent, item
• Sell intent, free-form, project-based
• Sell intent, item, project-based
• Sell Intent, Subscription
• Sell Intent, Bundle

Note: Buy is for creating master agreements (agreements) or purchase orders (intent) in the purchasing application
from lines created in the contract of these types.

Meanwhile, Sell intent project based is for displaying project related information in contracts and to bill the line to
a project maintained in Oracle Fusion Projects Module

Free-form for items that are not tracked in inventory & items is for available listed ones in the inventory.

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 8. Terms Library Setups
Terms Library is a collective term used for all the entities that make up or used to form the terms & Conditions of
the contract.
All these entities come in the “Contract Terms” tab under a contract.

Term Library is a collective term of the below entities in the Contract Library:
 Clauses
 Term Templates
 Variables
 Rules
 Folders
 Sections
 Questions
 Constants
 Numbering Scheme

Library entities need to be setup from the below options to complete its setup.
 Setups in Functional Setup Manager
 Setups in Terms Library Work Area

I. Setups in Functional Setup Manager

i. Enable Contract Terms Authoring From Contract Type

We must enable contract terms authoring for a contract type to use any of the library features for
contracts of that type as shown above.
The Contract Terms tab is present for a contract only if the contract type associated to the contract is
enabled for Contract Terms.
This can be done by the below steps:
1. Go to Navigator -> Contracts
2. Tasks -> Setup -> Choose “Contract Types”
3. Select the Contract Type and click on it.
4. Click the Advanced Authoring Option tab
5. Check the Enable Terms Authoring box, save and close

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 ii. Specify Terms Layout Template From Contract Type
Specify the Oracle BI Publisher layout template that will be used to format the printed contract terms for
contracts of this type.
This is setup in the field named “Terms Layout Template” as highlighted below in the Contract type.

iii. Defining Clause Types for Terms Library

The Clause Type on a Clause is used to categorize the clauses in the library according to its usage in the real world.
This can be setup by searching for the task “Manage Contract Clause Types” in Setup & Maintenance.
Look Up Type: OKC_SUBJECT
Example Values for this are clauses of type: Administration, Renewal, Performance, Amendments, General Terms,
Renewal, Payment, etc…

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 iv. Configuring Business Units for Terms Library

The use of most of the Contract Terms Library content is restricted to the business unit where we are creating it.
This includes clause, contract terms templates, and Contract Expert business rules.
Using the below tasks:
Specify Customer Contract Business Function Properties
Specify Supplier Contract Business Function Properties
We can setup library items such as:
i. Global Business Unit
ii. Enable clause and template adoption
iii. Clause Numbering
iv. Contract Expert
v. Layout Template
vi. Specify the Contract Terms Library administrator

v. Creating Contract Layout Templates

Using Oracle BI Publisher we can set up layout templates that determine the formatting of clauses, contract terms
template previews, the contract deviations report, and the contract itself.
Download the sample layout templates provided with your application from the Oracle BI Publisher library. You
can copy and edit the sample layout templates and upload them.

vi. Specifying the Location of the File Used for Clause Import
We can import legacy clauses into the Contract Terms Library, either from a file or from an interface table using
Oracle Fusion Enterprise Scheduler processes.
If you are importing clauses from a file, then you must specify the location of the file by setting the system profile
option in the task “Specify Contract Clause Import XML File Location”.

vii. Creating Contract Terms Value Sets

Select the Manage Contract Terms Value Sets task to set up value sets for use in contract terms variables and
Contract Expert questions.

Using Value Sets for User Variables

We use value sets in the setup of user variables for one of the two following purposes:
 To set up the list of values the contract author must choose from to enter the value
 To specify only the length and format of the information the author must enter manually

Validations: The following types of validation are available for value sets:
 Format only, where end users enter data rather than selecting values from a list
 Independent, a list of values consisting of valid values you specify
 Dependent, a list of values where a valid value derives from the independent value of another segment
 Subset, where the list of values is a subset of the values in an existing independent value set
 Table, where the values derive from a column in an application table and the list of values is limited by a
WHERE clause
A segment that uses a format only value set doesn't present a list of valid values to users.

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 II. Setups in Terms Library Work Area

The Contract Terms Library setup is built using the tasks within the Terms Library work area:

i. Clauses
We can create clauses which can be used later on for including them in the contract in the Terms Library.
We can specify different clause properties such as below:
 Business Unit: BU for which the clause is applicable
 Clause Number
 Clause Title
 Intent: Buy or Sell
 Type: Defined in task “Manage Contract Clause Types” in Setup & Maintenance
 Default Section: When we add the clause under a contract term then it automatically add the clause by
placing it under the section declared here.
 Text: This is the most important element of the clause that describes the clause content when the clause
is added to the contract terms.
 History: We can see the older version of the clause and compare what has changed with the new versions
 Terms Templates: Suggest the terms templates this clause is part of. Choosing any Term template in a
contract adds the clause automatically to contract terms.

Clause Text: The text that makes up the clause can be.
 Manually entering the text using the inbuilt document maker.
 Using the Import option. This requires Word 2007 XML document format.
 If need to make modification to clause content we can export make the modification and import the word
document again.
 Variables can also make up the clause text.

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Once a clause has been created it needs to be approved so that it can be made available in the Contract Terms for
usage.

How to Setup Clause Numbering?

We can setup clauses so that we can manually enter the clause number while creation or setup automatic
numbering.
Automatic numbering can be setup by choosing “Clause Numbering Method” as Automatic in setup step 4
We also need to select Clause Numbering Level & Clause Sequence Category if we are choosing a automatic setup.
Clause Numbering Level: The automatic numbering of clauses can be at BU, Ledger or Global Level.
Clause Sequence Category: Choose the sequence category setup in the task “Manage Document Sequence
Categories”

ii. Variables
We can use variables in the Contract Terms Library to display information dynamically within individual clauses and
for use within Contract Expert rule conditions.
Application comes with predefined variables, called system variables we can create additional variables, called user
variables, with or without programming.

Predefined System Variables

Application comes with predefined system variables that you cannot modify. These include:
 System variables
These variables make it possible for you to use information that is entered in integrated procurement, sales, and
projects applications. For example, you can use the purchase order amount from procurement contracts or the
payment terms from sales in Contract Expert rules that insert additional clauses to a contract as necessary.
 Deliverable variables
These variables permit you to list the titles of contract terms deliverables within a clause in the contract terms. For
instance, if a vendor must deliver a monthly quality report as part of the contract terms, you can create a
deliverable to ensure compliance. But creating the deliverable does not automatically print that deliverable in the
contract terms. To ensure that the deliverable name is printed, you must include a clause with the appropriate
deliverable variable inserted.
 Table variables
Table variables make it possible for you to print in a contract all of the values in a list such as a price list. Table
variables are available only in sales-intent contracts.

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User Variables
Types of user variables:
 Manual: Value Set entry
 Java string: Java and Java table variables require you to create Java methods to capture attribute values.
 Java table: Java and Java table variables require you to create Java methods to capture attribute values.
 Descriptive flexfield: To capture the values we enter in the Contract Headers flexfield and embed those
values into the clauses that make up the terms and conditions of the contract.
Note: We can use only global segments in contract variables context specific is not allowed
 Object: To create variables that reference fields associated to the Sales Account and Opportunity objects
in Application Composer. You can reference either standard child objects, or custom child objects that you
define for the Sales Account or Opportunity objects.
 Child object
Note: Object variables based on fields of type Dynamic Choice List are not supported

Usages of User Variables:

The user variables that you create can be:
 Inserted in the Contract Terms Library clauses
 Inserted into individual nonstandard clauses created by contract authors during contract authoring.
 Used in Contract Expert rule conditions. When contract authors run Contract Expert during authoring,
they are prompted to enter the variable value. The value is automatically substituted in the contract
terms and any rules where the variable is used are evaluated.

iii. Numbering Schemes

We can set up additional clause and section numbering for contract terms other than the parameter we set at the
BU level. We can select the numbering scheme we want to use with each contract terms template once defined.

iv. Terms Templates

Terms templates act as a template to automatically include terms and conditions into contracts during contract
authoring.
It can include library items such as Clauses, Deliverables, Rules & translations on the contract.

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Creating a template makes it easy for the user to add the above items directly to a contract instead of having to
pick the same items when creating each contract which becomes a overhead.
Contract authors can apply the templates manually, or the application can apply the templates automatically using
defaulting rules you set up.
Depending on the “Document Types” section setup under the terms template we can use this term template only
on those contracts that are associated with the contract types listed here as the Document Types.
Making the Document Type “Default” adds the term template directly to the contract when a contract is created
based on the said Contract type.

v. Contract Deliverables
Deliverables are like check points in a contract that are set to make sure that the contract delivery is in schedule as
per the agreement made.
Contract deliverables track both contractual and non-contractual commitments that must be completed as part of
negotiations, purchasing, and enterprise contracts between businesses and suppliers or customers based on
contract intent. These deliverables can be used in purchasing and sourcing documents that include contract terms
and in enterprise contracts.
A deliverable can be created once a contract has been created.
Contract -> “Deliverables”

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While creating a deliverable as shown above we can set the parties that are going to be involved in the deliverable.
Also include information if the deliverable will be one-time or repetitive and the due date for the deliverable.

We can also include notifications so that the parties are notified on the below scenarios:
 Prior to due date
 On status Change
 When deliverable is over due
 Escalate after due date

Note: We need to run the process "Send Contract Terms Deliverable Overdue Notifications" and wait till it
is successful for the notification to appear in the contract dashboard in the contracts work-list.
It is better to schedule this process twice a day or so to regularly push the deliverable notifications.

vi. Importing Clauses

We can import clauses from legacy applications by running Oracle Fusion Enterprise Scheduler (ESS) processes
from the Terms Library work area by selecting the Import Clauses task or from the Setup Manager by selecting the
Manage Processes task.

To perform the clause import via xml we need to do the below:

Step 1: Prepare the xml file containing the clauses that needs to be imported to the terms library
Step 2: Specify the directory where to place the xml file on the server.
It can be found from the Setup & Maintenance -> Task "Specify Contract Clause Import XML File Location"
By default it is set as: /usr/tmp/
Step 3: Place the XML file in the CRM domain -> ESS Server
Step 4: Run the "Import Clauses" task link in the Terms Library work area.
Parameters for running the process would be:
XML File Name: xxxxxxxxx.xml (Example: RMLibraryImport_1_.xml)
Default Business Unit : Select the name of the business unit
Create as Global Clause : You can specify clauses imported into the global business unit as global clauses. This
means they will be available for adoption by other business units.
Default Clause Status: The status you enter here is used to specify the status of clause records where no status is
specified. Normally it is Draft
Validate Only: No
Step 5: Use the Manage Process task available in the Terms Library work area to monitor the progress of your
import and review the log for any error messages.

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Records with errors remain in the interface tables until you purged them or correct them.
Step 6: Confirm that the clause is created by searching the clause in Terms Library
Note: For sample xml file & cloud customers to place read the below document:
How To Upload Clauses To Terms Library Using XML? (Doc ID 2127427.1)

Contract Security Setup:

The list of business units (BU) that a user can access is based on the resource organization to which the user is
mapped as a resource as explained in section “How does a contract user get access to create/update contractual
data? “.

Contract Users can be of two types: admin and non-admin users

Admin Users are the users with Role Contract Administrator
Non-Admin Users are the users with Role Contract Team Member

• Admin users can create or edit contracts in all the business units they are authorized to.
• Non-admin user access to the contracts is controlled by team membership as follows:
1. They can create contracts in all the business units they are authorized to.
2. Can edit all the contracts in which he/she is a team member of the contract.
Note 1: Though a user is authorized to a BU, he/she may not be authorized to all contracts in that BU.
Note 2: You can access a contract even if you are not authorized to its BU provided you are a team member in the
contract.

How does a contract user get access to create/update contractual data?

The contractual data access is via Business Units they are associated to.
A contract user gets access to a business unit (BU) as follows: the user is created as a resource and mapped to a
resource organization.
Since each resource organization is mapped to one or more BUs, the user gets access to the BUs that are mapped
to the resource organization.

Navigator -> Manage Users - > Search For User and edit to view the Organization associated.

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Navigator -> Resource Directory -> View Organizations
Open the Organization to view the Business Units associated.

In the above example the user “Clare Furey” as he is associated to Organization “Vision Project Operations” he/she
directly gets access to the business unit the organization is associated with.

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Approval Setups:
Fusion has given the privilege to use BPM Worklist for configuring the approvals of various contract entities.
With the use of this tool we can setup approvals for Contracts, Clause & Term Templates.

1. Contract Approval Setup

Contract approval can be setup by BPM Worklist by the following steps:

Step 1: Navigator -> Setup and Maintenance

Step 2: Search for ‘Define Approval Management for Customer Relationship Management'
Expand and open task ‘Manage Task Configurations for Customer Relationship Management'
A new BPM Worklist window opens.
Step 3: Click on "Task Configuration" tab, then choose “ContractsApproval” task on left pane

Below are the types of approvals we can configure:

 Auto Approval
 Serial Approval
 Parallel Approval
 Parallel Approval with First Responder

I. Auto Approval:
If there is a scenario in which we would require to bypass approval and do not want approval process to kick in we
can setup the “ContractsApproval” task as below:
Click on the “Assignees” tab and make sure that only the first stage is Active.

Note: We can say that a stage is “Active” by noticing that the Blue Icon and highlighted and not grayed out.
In the below we can see the first stage is Active and the other are all inactive.

Click on the stage to setup the approval rule and click on the blue dot to view the action “Go to rule” as shown in
the image above. Once we click on Go to rule setup the rule as below:

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1) Edit IF condition to 1 is 1
2) Under Then block Choose
List builder : Supervisory
Response type: Required
Number of levels: 1
Starting Participant: HierarchyBuilder.getPrincipal(Task.payload.submitter,-1,"","")
Top Participant: HierarchyBuilder.getPrincipal(Task.payload.submitter,-1,"","")
Auto action enabled: True
Auto Action: "APPROVE"
3) Save and commit.

Note: Whenever we have modified an approval rule we need to Validate to see any errors/warnings and then save
and commit for the changes to commit into effect.

II. Serial Approval:

Serial approval is needed to setup when we are requiring an approval of series of people before the contract
becomes active.
Serial approval is a sequential approval of a group of people until it reaches the final approver.
st
When submitted a contract with this type of approval the approval is sent only to the 1 approver and after the
st
action taken by the 1 approver then only the approval is sent to the second approver and so on it goes until last
approver in the line.

Example Setup & Flow:

I am using the below approval group with users Abraham Mason & Guru Raghavendra in the group as in below
screenshot.

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When submitted the contract “Guru Terms Clause” for approval below is the list of approvals shown.

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We can see below that the approval request for the contract has first gone to Abraham in the worklist as he is first
in the sequence.

Once this work list task has been consumed by Abraham by approving it with below action

It appears in Guru’s worklist for approval not before Abraham approving it

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Once the user Guru has consumed the approval then the status of the approval goes to “Active” from “Pending
Approval”

III. Parallel Approval:

Parallel approval is needed to setup when we require an approval to go to many people at a single time. It does
not require approval to be completed by the previous person in group before an approver gets the task.

When submitted a contract with this type of approval the approval is sent to all the approvers in the group for
approval:

Example Setup & Flow:

I am using the below approval group with users Abraham Mason & Guru Raghavendra in the group as in below
screenshot.

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When submitted the contract “Guru Test 1234” for approval below is the list of approvals shown as per the setup.

And unlike this time around the approval goes to all the approvers in the group at once instead of in sequence

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Once all the approvers have claimed the task the contract becomes Active. We can view the history of the approval
in the contract history tab as shown below.

IV. Parallel Approval with First Responder:

st
This is a type of Parallel approval where the approval is sent to all the approvers as per the rule but awaits only 1
approval and does not require all the approvers consent for the contract to move to an Active status.

Example Setup & Flow:

For this type of approval setup we need a role created and assign all the users whom we want as approvers for
those roles:
We can create Role by following steps:
 Go to the application Navigator > Setup and maintenance > search for task: Manage duties > Go to task.
 Under the fscm domain click: New role > enter the role name and display name details > click Save (and
remain in the same screen)

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  Click the tab for External User Mapping > Click the Add button and add the desired user(s)

Go to the ContractApproval task in BPM and click on Assignees tab

Click on each step and in Advanced Config on the bottom Check the property 'Ignore Participant' to True to disable
all steps.
If you require the Parallel Functionality then just enable the step "SoaOLabel.Stage1ParallelApprovers" by
unchecking the 'Ignore Participant' so that this rule alone is considered for approval and all others steps are
obsolete like serial approval. It should look like below once the above step has been done and saved.

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Next edit this step by editing on "ContractsApproval02" and in the rule based on a duty role with below:
List Builder: Resource
Response Type: Required
Application Role: A customized role or an OOTB Role (In this example the above created role)
Rule name: "Rule1"

Once the setup is complete.

Submitting a contract “Guru Test Agreement 1234” for approval

The notification for approval is received by all the approvers in that role

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Claim the task and Approve:

Approval now will directly take the contract to “Active” status without requiring other approvals:

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Conditions we can use in the contract approval:
In this section we talk about the conditions we can use in the contract approvals to route the approvals to a
correct action mechanism according to the business need.
It talks about the “IF” block as highlighted in the below:

Example use cases:

 1 : For unconditional approval we use ‘1’ so that no matter which contract we submit for approval it
always qualifies for this condition and invokes approval based on that is configured in the “THEN” block.
 ContractDetails.estimatedAmount.value : If we would like the approval to be based on the “Amount” field
that is set on the contract that is being submitted.
 ContractDetails.agreedAmount.value : This is basically the same “Amount” field but when the contract
class in an “Agreement” the amount becomes an agreedamount & when the contract class is enterprise
contract then the amount becomes the estimated amount.
 ContractDetails.contractClass : Based on the class of the contract type that the contract is based
on
 ContractDetails.contractTypeId : If we would like the approval to be based on the contract type id.
The below SQL can be used in order to get the contract type id from DB:
SELECT contract_type_id FROM okc_contract_types_vl WHERE name ='<contract_type_name>';
 ContractDetails.billToSiteUseId: If we would like the approval to be based on the bill to site id
 ContractDetails.amendmentEffectiveDate: Based on the effective date of the contrct
 ContractDetails.contractNumber: Based on the contract number
 ContractDetails.buyOrSell : Based on the intent of the contract buy or sell type
Note: These are just a few that have come across while setup of approval we can setup contracts based
on many more conditions of the contract detail fields.
We can also setup the approval based on the flexfields configured as well.

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 2. Clause Approval Setup

Clause approval can be setup in the BPM Worklist by the following steps:

Step 1: Navigator -> Setup and Maintenance

Step 2: Search for ‘Define Approval Management for Customer Relationship Management'
Expand and open task ‘Manage Task Configurations for Customer Relationship Management'
A new BPM Worklist window opens.
Step 3: Click on "Task Configuration" tab, then choose “ContractCaluseApproval” task on left pane
Step 4: Click on Edit and choose the Blue Dot to edit the clause approval setup

Example Setup & Flow:

Setup the Clause Approval so that the rule checks the clause intent.
Configured to make the rule request for approval of “Abraham” group if Intent is Sell &
Configured to make the rule request for approval of “ClauseApproval” group if Intent is Buy as below:

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Created Buy Intent Clause and Initially it would be in “Draft” status.

Submitting the Clause for Approval gives the confirmation message.

Since the Buy intent clause routed the approval to “ClauseApproval” group the approver Guru part of the group
gets the notification in the Terms Library Worklist

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Choose the task and click on Action to Approve.

The Clause is now in status “Approved” and is ready for use in contracts.

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 3. Terms Template Approval Setup
Terms Template approval can be setup in the BPM Worklist by the following steps:

Step 1: Navigator -> Setup and Maintenance

Step 2: Search for ‘Define Approval Management for Customer Relationship Management'
Expand and open task ‘Manage Task Configurations for Customer Relationship Management'
A new BPM Worklist window opens.
Step 3: Click on "Task Configuration" tab, then choose “TemplateApprovalHumanTask” task on left pane
Step 4: Click on Edit and “Assignees” tab then choose the Blue Dot to edit the terms template approval setup

Example Setup & Flow:

Setup the Terms Template Approval so that the rule checks the intent.
Configured to make the rule request for approval of “Abraham” group if Intent is Buy &
Configured to make the rule request for approval of “ClauseApproval” group if Intent is Sell as below:

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Create a Terms Template “Guru Demo Approval” based on “Sell” intent and its starts in status “Draft”

Submit the Term Template for approval moves the status to “Pending approval”

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Now since the intent is Sell it will route the approval to the Group “ClauseApproval” and as the approver Guru is
part of this group the approval notification will be visible in the Terms Library dashboard in the worklist -> My
Tasks.

Once the approver has approved it the status is now changed to “Approved”

Clause Adoption & Localization:

What's the difference between an adopted and a localized clause?

Adopt a global clause to reuse it without change in a local business unit.
Localize a global clause to use it with edits in a local business unit.
All clauses you adopt and localize must be approved within your local business unit before they can be used for
contract authoring. You can set up approvals to be automatic for adopted clauses by enabling automatic adoption
using the “Automatically adopt global clauses” option.
But automatic approvals are not available for localized clauses.

The Approver for each business unit for adopting and localizing can be set using the “Terms Library Administrator”
option in the below tasks:
Specify Customer Contract Management Business Function Properties
Specify Supplier Contract Management Business Function Properties

The administrator must adopt individual clauses or localize them for use in the local business unit. The
administrator can also copy over any contract terms templates created in the global business unit.

1. Clause Adoption:

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This is a functionality provided to re use the clauses created against the global business unit in other business units
as well. We might have a business scenario in which a particular clause is required against n number of business
units. In this case creating one global clause and adopting this clause to various local clauses helps to reduce the
manual activity of creating the same clause against each and every enabled business units for contract.
Below are the steps to adopt a clause.

Firstly to adopt a global clause to local business unit we need to have a global business unit setup.
We can see that the Business Unit “Vision Project Mfg” is setup as Global Business Unit using the “Specify *
Contract Management Business Function Properties” Task.

Once the Global BU is setup we can create a Global Clause “Guru Global Clause” by selecting the Business Unit that
is Global & setting the “Global” flag to true.

Once this Clause has been created and approved.

Search for the clause “Guru Global Clause” in advanced search of Clauses we will notice that the global clause is
automatically copied to the Local Business Unit and is readily available for adoption by the local business unit.

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Note:
We can see that the Local Clause for the Business Unit “Vision Services E+C” is automatically in approved status &
Adoption type is “Adopted” once the Global clause is approved while the other Local BU’s clauses are in Draft
status this is because of the auto adopt option we have used in the business unit setup.
Notice in the below screenshot that “Automatically adopt global clauses” is selected in the Business Unit “Vision
Services E+C”.

Now to Adopt the Global Clauses those are in Draft Status and are “Available for adoption” we can click select the
Local Clause click on “Actions” -> Adopt the clause

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We should get a confirmation message that it has been submitted for approval

We will see that the status has been moved to “Pending Approval” and the clause cannot be just used yet for the
business unit “Vision Services” as it needs approval.

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This approval will be now sent to the “Terms Library Administrator” that is setup against the Local BU as shown
below.

As the Library Administrator for “Vision Services” BU is Abraham Mason the approval task is received by Abraham
and is available under My Tasks in the Terms Library Worklist.

Once approved this clause can now be used against contracts that are of Local BU “Vision Services”

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 2. Clause Localization:
Clause localization is very similar to clause adoption in which we re-use the global clauses to a local business unit
for use in local BU but localization is different in a way that we can make edits or changes to the global clause
before using it in local BU.

Below are the steps to localize a clause:

Once a Global Clause has been created and approved when we search for the clause “Guru Global Clause” in
advanced search of Clauses we will notice that the global clause is automatically copied to the Local Business Unit
and is readily available for adoption by the local business unit.

Now let’s take the Local BU “Vision Operations” for localizing the global clause.

Select the record. Click on Actions -> Choose “Localize”

We will be able to make all the changes we require and modify the clause Text as well as highlighted below.
Notice that the Adoption Type is changed to “Localized”

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Submit the localized clause for approval.

Notice the clause localization triggers the general clause approval process as setup in the BPM worklist for the task
“ContractCaluseApproval” and it does not trigger the approval to the Terms Library Administrator as setup against
the Local BU.

Once it has been approved by the approver we can now see that the Local Clause is now in status “Approved” &
the Adoption Type is “Localized”
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Note: We can only either adopt or localize a clause created against the local business unit but cannot do both.

Usage of Global Terms Template to Local Business Unit:

Setting of the global option on a terms template created for a global business unit means that this terms template
be adopted by other local business units for local usage.
We can adopt contract terms templates by copying them to local BU’s.

Steps to localize a global terms template:

In the global business unit, we can create a contract terms template with the Global option selected.
After the global template is approved, it is automatically available for copying in the local business units.

Contract Terms Library administrators can search for the global templates available for adoption by selecting the
Global option in the Search Templates page.
Global templates are copied over by selecting the Duplicate action and creating the duplicate for the local business
unit for which it is necessary.

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The copied contract terms template in the local BU must be approved in the local business unit before it can be
used.

Note: Setting the Global option it does not make it available for the terms template to be viewed by all business
unit. By this option we can duplicate the term template to any local business unit.
When duplicating the term template without global option it does not allow you to set a different business unit on
the adopted one.

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Contract Fulfillment:
This is the stage of a contract where the goals that were set while creating the contract are being fulfilled. This
involves completing a contract or an agreement where all obligations are being fulfilled.

We can track goods, services, reports and other fulfillment items you are purchasing in buy-intent contracts.
Depending on the type of contract we can have contract fulfillment to initiate the creation purchase orders or
purchase agreements within Oracle Fusion Purchasing or with other integrated purchasing applications and
monitor their fulfillment from within the contract.

We have two types of contract fulfillment:

• Contractual
Fulfillment lines that are covered by the terms of the contract.
You can initiate standard purchase orders or purchase agreements from contractual fulfillment lines, depending on
the purpose of the contract.
The Auto-create Fulfillment Lines action automatically creates contractual fulfillment lines for whole contracts or
for specific contract lines

• Non-contractual
Fulfillment lines that aren't negotiated as part of the contract, which are used to monitor the progress or quality of
contractual fulfillment lines.
You can also create purchase orders and purchase agreements from non-contractual fulfillment lines.
Need to create fulfillment manually for non-contractual
Contract deliverables track both contractual and non-contractual commitments that must be honored as part of
negotiations and contractual agreements between businesses and suppliers or customers based on contract
intent.

We can choose to create a fulfillment either on the contract header or on individual contract lines by selecting
either the Auto create Fulfillment Lines or the Create fulfillment actions. The Auto create Fulfillment Lines action
creates the fulfillment line and copies the contract basic header or contract line information to the fulfillment line
so you do not have to enter it manually.
Selecting the Auto create Fulfillment Lines action from the header automatically creates one fulfillment line for
each contract line. If there are no contract lines, then the application creates one fulfillment based on the header
details provided the contract type is of class Purchase Agreement.
We will not be able to auto create fulfillment lines for contracts without contract lines if the contract type class is
Enterprise Contract.
We can setup the fulfillment notifications in the contract type setup in the sub tab so that notifications are sent
automatically to interested parties regarding fulfillment progress and deadlines.

When the contract is approved and becomes active, we can initiate the creation of the purchasing documents in
purchasing applications. The purchasing application then creates the purchasing document if all validations are
met correctly. After the purchasing document is created in the purchasing application, you can monitor the
progress of its execution.

Steps to Create a Purchase Order / Agreement:

Step 1: Create Fulfillment Lines

Once a Contract & its Lines have been created we can create the fulfillment Lines via any of the below methods as
per the need.

Click on Actions -> Autocreate Fulfillment Lines

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.
Open the Contract -> Click on Lines -> Choose the Line for which Fulfillment lines are needed to be created ->
Actions -> Autocreate Fulfillment Lines

Or directly create a fulfillment line from the “Fulfillment” tab.

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Step 2: Create Purchase Order or Create Purchase Agreement
From the Fulfillment tab click on the Actions -> Create Purchase Order

Note: We must enter all purchasing information required by the purchasing document you are creating and wait
until the contract is approved.
You can create one purchase document from multiple contract fulfillment lines.
For example, selecting all fulfillment lines created from contract lines when creating a purchase order creates one
PO with lines corresponding to each of the fulfillment lines.

Step 3:
Once the step 2 is completed the fulfillment will have status such as “PO Creation in Progress” or “Agreement
Creation in Progress”
Note: Purchase orders are created automatically in Oracle Fusion Purchasing, but agreements are created only
when we run the Import Blanket Agreements and Import Contract Agreements processes from the Purchasing
work area as shown below.

Step 4: Monitoring of Purchase Order and Agreement Status Information

You must run the Track Purchasing Activity process to display information about the status of purchase orders or
agreements created in Oracle Sales Cloud Purchasing. You can run this process in the Contracts work area, the
Manage Processes task. Select Schedule a New Process to schedule this process to run periodically, depending on
your business needs.

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You can schedule the processes in Step 3 & 4 to run periodically, depending on your business needs.
For both processes, we need to set the following parameters:
Procurement BU
Select the business unit on the contracts for which you are creating the agreements.
Default Buyer
Select the buyer on the contract fulfillment for whom you want to create agreements.
Approval Action
Select one of the following: Do Not Approve, to create a draft agreement, Bypass Approval, to go straight to the
buyer for signature, or submit for Approval, to submit the agreement for approval first.

Related Common Issues:

Unable To Fullfill Contract Lines (Doc ID 2126269.1)
Track Purchasing Activity Job Stuck In Running Status (Doc ID 2103826.1)

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Extending Contracts to Add Custom Fields
We can extend the contract module to further add fields to store information that cannot be stored as part of out
of the box application.
This can be done be using flex fields that are configurable from the setup & maintenance area.
We can add extra fields to Contract Header, Lines & Clauses.

We have defined Flexfields for each of these areas in contract in which we can create new segments as per the
usage of the field in the application and add fields.
The task in setup & maintenance that is used for editing these flexfields is “Manage Descriptive Flexfields for
Custom Qualifiers”
Below are the Flexfield code pertaining to contract areas:
 ContractHeaderFlexfield: Fields for Contract Header
 OKC_LINES_DESC_FLEX: Fields for contract line create and edit pages.
 OKC_ARTICLES_DESCFLEX: Fields for create and edit clause pages in the Contract Terms Library.
 ContractTermsDeliverableFlex: Fields for contract terms deliverable create and edit pages.
 Contract Deliverable Flexfield: Fields for contract fulfillment lines in create and edit pages.
 ContractTermsTemplateFlexfield: Terms Template additional information

The segments we create against these flexfields can be general or context specific segments.
General segments are those that are available against across all Business units meanwhile the context specific
segments are created against a specific business unit for which alone they would be visible.

The new fields (Segments in the Flexfield) that we create appear in the “Additional Information” section.
Highlighting in the below screenshots of a few contract areas with the flexfields segments appearing in the
addition information area.

Contract Header:

Contract Line:

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Clause:

Example flow to create a custom field:

Let’s say we have a requirement to store an additional value “Contract Severity” on the contract header. Below are
the steps we perform to add a new field to store this value.

Step 1: Navigate to Setup & Maintenance -> Search for Task “Manage Descriptive Flexfields for Custom Qualifiers”
Click on “Go to Task” and in the resulting page search with Flexfield Code “ContractHeaderFlexfield”

Step 2: Click to create a new segment as below in the screenshot

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Step 3: In the create screen give the name and notice that the code & API name is auto populated. Click on the
“Table Column” and choose the type of data that this field would carry. It can be Number, Date or Varchar type.

Step 4: We can choose to either create a new value set or choose an existing value set.
A value set is a group of valid values that we assign to a flexfield segment to control the values that are stored for
business object attributes. An end user enters a value for an attribute of a business object while using the
application. The flex field validates the value against the set of valid values that you configured as a value set and
assigned to the segment.
For example, you can define a required format, such as a five digit number, or a list of valid values, such as green,
red, and blue.
Flexfield segments are usually validated, and typically each segment in a given flexfield uses a different value set.
You can assign a single value set to more than one segment, and you can share value sets among different flex
fields.

Note: Be sure that changes to a shared value set are compatible with all flexfields segments using the value set.

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Let’s create for example a format only that allows a maximum length of 40 on the field as below.

Save & Close the Flex field one the segment is created.

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Now we will see that the flexfield is in edited status

Deploy the flexfield to commit the changes to run-time.

Should get a successful message once deployment successful as below

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Once flexfield is deployed we should be able to view the field in the additional information section.

Note: We can create many kinds of fields using various types of value sets and their validations. We can also use a
look up type to have a List of value kind of field.

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