When you define a contract request (CR), you specify the contract type (commodity, item, or supplier level), and indicate whether users will create release orders against the contract.

When release orders are not required, you may have the option to create invoices and receipts against the contract if your Buyer instance is configured to support direct invoicing and receiving.

If you choose to apply discount pricing terms to non-catalog items, the discount price is reflected in the line items details listed on the Summary tab (at the Checkout step). Click Show Details to display the line item detail information. You can compare the base price associated with the contract to the item unit price to confirm that the pricing terms have been applied.

The Contract Pricing Terms Detail report displays information by contract title. To ensure that your report results will be accurate, enter a unique title for the CR.

When Ariba Contract Compliance is integrated with Ariba Contract Workbench, several settings on this screen are unavailable because they are defined and controlled in the originating Ariba Contract Workbench workspace.

1. Enter a unique title for the CR. Make the title meaningful so you can easily identify the request later. A unique title is required for accurate reporting.
2. Describe the purpose of the request, the primary users, and any information that will help approvers reviewing the contract, and users creating releases against it.
3. If a related external contract exists (from your ERP or other system), enter the contract ID for cross-reference purposes. (This value is listed on Contracts reports as the External ID.) When you enter a related Contract ID and click the Yes radio button, the Related Contract ID text is included as part of the system-generated contract ID.
4. Indicate the person to contact with questions about the contract.
5. Specify the hierarchical type for the contract. If this contract is not part of a contract hierarchy, choose Standalone.
6. If this contract is a subagreement within a contract hierarchy, you must choose a parent agreement.
7. Enter the effective date when the contract will be available to create release orders against, and the expiration date when the contract will no longer be available.
8. If you do not want this contract to close on a specific date, you can make it an evergreen contract. Evergreen contracts still can be closed manually or by other means such as when an overall commitment level is reached. You can specify an expiration date for an evergreen contract, but this date causes a notification message to be sent as a reminder to review the evergreen contract. You must also set the Number of Days Before Contract Expires notification limit to set up the delivery of this notification. Leave the expiration date blank if you don't want these notifications sent about your evergreen contract.
9. Select a supplier and supplier location. You must select a supplier, even if the contract is set up for commodities (commodity level) or items (item level).
10. Indicate whether the contract references specific commodities or items, or is based solely on the supplier. The contract type determines the pricing and discount terms you specify. Within a contract hierarchy, it also determines which parent agreements you can choose for a subagreement.
11. Indicate whether releases are required. If you create releases, individual purchase orders (also called release orders) are generated as releases against the contract.
12. If releases are not required, indicate whether or not users can create invoices and/or receipts against the contract.
13. For commodity and supplier level CRs, indicate whether the same discount pricing terms that apply to catalog items apply to non-catalog items. If yes, then when a user with release access to the CR adds a non-catalog item to a request, and the non-catalog item's supplier and commodity code match the supplier and commodity code listed on the CR, the CR (discount) pricing is applied to the non-catalog item.
14. Select the currency to be used for the contract.
15. Select the organization associated with the contract, if other than the default.
16. If you have permission to access Ariba Category Management (ACM), you can add the contract to an existing project, and view projects to which the contract has been added. Click Add to Project or the related project link to add or view details.
17. If this is a master agreement or subagreement, choose whether to Include subagreement accumulator amounts in the parent agreement accumulator totals. If this is a master agreement, choosing No prevents any amounts from its subagreements from being accumulated in its own accumulated amounts. If this is a subagreement, choosing No prevents amounts from this subagreement from being accumulated to its parent agreements, up to its master agreement.
18. Click Next to go to the next step in the process, or Summary to go to the Summary screen where you can complete and submit the request for approval.