Oracle iProcurement supports the association of a requisition line with a contract purchase agreement defined in Oracle Purchasing. This allows the automatic creation of standard purchase orders through the use of the PO Create Documents workflow. The standard purchase order that is created stores the contract number in the Purchase Orders window, in the Reference Documents tabbed region, in the Contract field. Oracle Purchasing adds the total amount of the purchase order line to the Released amount on the contract purchase agreement.

Associating a requisition line with a contract purchase agreement can be done in two basic ways, automatic or explicit.

Automatic Contract Sourcing If the PO Create Documents workflow option "Should Contract be used to autocreate the Doc?" is set to Yes, Oracle iProcurement checks whether there is a valid contract purchase agreement for the supplier and
supplier site specified on the requisition. If there is, that contract is used. If multiple contracts exist for the supplier and supplier site, the latest created contract is used.
Automatic contract sourcing can be used for the following types of items:
■ Bulk loaded, punchout, or transparent punchout catalog items where there exists a valid contract purchase agreement for the same supplier and supplier site associated with the item.
■ Non-catalog requested items where there exists a valid contract purchase agreement for the same supplier and supplier site associated with the item.
■ Extracted ASLs that are not linked to a source document and where there exists a valid contract purchase agreement for the supplier and supplier site specified on the ASL.

Explicit Contract Sourcing You can also explicitly enter a contract purchase agreement for an item in the catalog.
Explicit contract auto-sourcing can be used for the following types of items:
■ Bulk loaded items that have an explicit reference to a contract purchase agreement in Oracle Purchasing.
■ XML punchout or transparent punchout items for which the supplier hosting the content has specified a contract purchase agreement number that is valid in Oracle Purchasing.
■ XML punchout or transparent punchout items from an Oracle Exchange marketplace where the buying company has specified on a supplier price list a valid contract purchase agreement number in Oracle Purchasing.

If a specific, valid contract purchase agreement number is given for an item, the PO Create Documents workflow references that contract purchase agreement on the purchase order, even if other valid contract purchase agreements exist for the
supplier and supplier site.