The Framework Contracts feature, only available to customers subscribing to the Advanced or Enterprise plans of the Aidi platform, lets you define and manage agreements with individual suppliers, and track Purchase Orders associated with the supplier for whom a framework contract exists.
A framework contract allows you to give a supplier a global contract. This contract is not specific to a particular project. With a framework contract, you can specify a responsible party and an initial amount, then approve it. You can later make revisions and link the framework contract to purchase orders as needed.
When approving the purchase order, an initial approval will be required to confirm the link with the framework contract, then the "normal" purchase order approval chain will follow.
Create a Framework Contract
Access Framework Contracts from the Execution menu, then click on the Create button to add a new contract.
- Enter the contract code.
- Give the framework contract a title.
- Select the chosen supplier.
- Save and open.
A: The fields in this section can be modified at any time. You can also set an end date for this contract and define a responsible person among the project contacts. The framework contract must be approved before a purchase order can be associated with it. The user identified as Responsible can approve the association of a purchase order with this framework contract.
B: Indicates the percentage of the total contract amount that has already been used, as well as the amount remaining in the contract. You can delete the framework contract from the 3-dot menu.
C: Following contract creation, enter the original contract amount. This amount can be revised.
Used Amount: Amount of approved purchase orders whose mandate is associated with the framework contract.
Reserved Amount: Amount of purchase orders associated with the supplier mentioned in the contract whose status is In preparation, Waiting mandate validation or In approval.
D: Click on the Add button to associate a document or URL link with this framework contract.
Adding Revisions
If the framework contract amount is insufficient, or if you wish to reduce the framework contract amount, you can create an amount revision.
- In the Revisions section, click on Create.
- In the revisions creation form, enter the date of this revision.
- Enter the amount of the adjustment, positive or negative.
- Save.
Impact on the Purchase Order
When creating a purchase order with a supplier who has an approved framework contract and sufficient funds available, you can link the purchase order to this framework contract. Once the purchase order has been created, a request for approval will be created in the mandate section of the framework contract. Once the mandate has been approved, you can continue with the normal purchase order approval process.
The total amount of the purchase order will be subtracted from the framework contract once approved.
- In the Purchase Order creation form, as soon as you select a supplier for whom a framework contract exists, you will have the option of linking the purchase order to the contract by selecting this framework contract.
- Continue creating the purchase order by following the next steps.
- Complete the information on the purchase order and enter the amounts associated with the applicable budget items.
- Note the status of the purchase order, which indicates Waiting Mandate Validation, when associated with a framework contract.
- Click on the Validate Mandate button. The person responsible for the framework contract will receive an email entitled Mandate Confirmation Request. A button in the email gives direct access to the framework contract.
Mandate Approval
On the framework contract page, the person responsible can approve or reject the mandate.
- Go to the Mandates section.
- Note the purchase order amount, which is also entered in the Reserved Amount section.
- Also note the Available Amount, which has been reduced by the purchase order amount.
- Click on the purchase order number to access it.
- Approve or reject the purchase order.
✏️Note 1: If you reject the mandate, the line displayed in the Mandates section disappears, along with the amount reserved. The status of the purchase order changes to In preparation, allowing you to continue with the purchase order without associating it with the framework contract.
✏️Note 2: On approval, the status of the purchase order changes to In preparation, and a check mark indicates that the mandate has been approved. At this stage, the purchase order amount remains a reserved amount.
Once the mandate has been approved, the purchase order can be sent for approval following the predefined approval chain.
Once the purchase order has been approved, you will be able to see in the framework contract the purchase order amount that has been moved from the Reserved Amount to the Used Amount. The status of the purchase order is also updated.
Comments
0 comments
Please sign in to leave a comment.