Download
1 / 38
380 likes | 506 Views
CN210 Contracts and Amendments. Contract Roles. Agency Contract Processor. Agency Contract Processor The Agency Contract Processor enters contract information into SFS that will be used to create and manage purchases and purchase orders.
E N D
Agency Contract Processor • Agency Contract Processor The Agency Contract Processor enters contract information into SFS that will be used to create and manage purchases and purchase orders. The Agency Contract Processor role will perform the following tasks in SFS: • Create a Contract • Enter a Contract Amendment • Change Contract Status to ‘Pending OSC Approval’ • View Contract Information • View Non-Confidential Vendor Information • Look Up Vendor by TIN
Agency Buyer Manager • Agency Buyer Manager (Approver) The Agency Buyer Manager (Approver) reviews contract information entered into SFS that will be used to create and manage purchases and purchase orders. The Agency Buyer Manager (Approver) role performs the following tasks in SFS: • Reviews the contract • Changes the Contract Status to “Pending OSC Approval”
Contract ID AContract ID is assigned to each contract by state Agencies; this ID aids in identifying the contract. In SFS, the Contract ID is displayed on the Contract tab just above the Header section of the page.
Contract ID Naming Convention The Contract ID Naming Convention is BBBBB-NNNNNNNNNN-DDDDDDD. • BBBBB – a five-character valid Business Unit (BU). • NNNNNNNNNN – a one-to-ten alpha numeric contract ID. This section of the ID contains the Contract Prefix. • DDDDDDD – a seven-character valid Department ID.
Contract Prefixes (1 of 4) A contract category can be defined by its prefix. A table listing acceptable prefixes, associated categories and descriptions is displayed below.
Contract Types New York State Master Contract • A Master Contract, currently referred to as a Centralized Contract is created by the Office of General Service (OGS) only, but POs from other agencies may be created against it using your Agency ‘Business Unit’. • OGS contracts receive prior approval from the Office of the State Comptroller (OSC). Once OSC has completed the pre-approval process and approved each contract, they are posted on the OGS website for use by all eligible entities. • Most OGS contracts can be used to make direct purchases, with the exception of the back-drop contracts (which are clearly labeled as such).
Contract Types • Only OGS will have access to create a Master Contract. Agencies will be able to associate POs to a Master Contract.
Creating a Contract Key Points
Creating a Contract – Key Points • Key points to remember: • Validate the vendor before creating a contract • Creating contracts is a two-step process • A contract is created in SFS. • A Purchase Order (PO) is created in SFS to associate to the Contract and encumber the funds. This will be further discussed later in the presentation. • OSC Bureau of Contracts (BOC) changes the status of the contract transaction to “Requested PO” to indicate that the agency should associate a purchase order to the contract . NOTE: Contracts requiring OSC approval are not approved at the contract level in SFS, but rather at the PO level in SFS.
Creating a Contract – Key Points Creating contracts and encumbrances is a two step process. A contract must be established before an encumbrance may be created against it through a purchase order.
Creating a Contract – Key Points (continued) Procurement Contract, Corporate Contract check box • When the Corporate Contract checkbox is selected, any BU may pay off the contract unless specific business units are defined on the PO Defaults page. • If agencies are using a contract for their own BU, the Corporate Contract checkbox is to be unselected.
Corporate Contract checkbox • Be sure to uncheck the Corporate Contract checkbox so other agencies don’t associate POs with your contracts.
Creating a Contract – Key Points (continued) • There is no agency level workflow in the SFS for managing contracts. • It will be necessary for the Contract Processor to save the contract and change the status to ‘Pending OSC Approval’. The system will create the amendment sequence 000. • For contracts requiring OSC approval, the contract will enter the BOC contract approval process. For contracts that do not require OSC approval, the agency will change the status to ‘Requested PO’. • Agencies can track the status of a contract being processed by OSC by inquiring on the contract in SFS.
Creating a Contract – Key Points (continued) • If the contract requires OSC review and approval, save the contract with the status of Pending OSC Approval. • No further edits may be made when the contract is in the status of ‘Pending OSC Approval’. • Once the agency approves the contract, the contract is saved as pending OSC. • Under Order Contract Options remember the following: • Uncheck the Allow Multi Currency PO option • Check Corporate Contract if the contract will be used by multiple business units • Check the Allow Open Items Reference Option • Check Price can be Changed on Order only if quantity or dollar amount changes will be allowed to be made later on the PO
Creating a Contract – Key Points (continued) • Allow Open Item Reference checkbox – Be sure this box is checked to allow freight costs, for example, to be charged. • Price Can Be Changed on Order checkbox – If this box remains unchecked, the contract can only be changed by quantity and not amount. Be sure to check this box so amount can change if necessary.
STS Report If a contract requires OSC approval the agency must generate and send to OSC BOC a Single Transaction Summary (STS) Report. The DRAFT Guide to Financial Operations, Chapter 11.4.B, Pg. 64 provides directions on how to complete this form: Guide to Financial Operations Navigation to generate the STS in SFS: • Navigate to Purchasing > Procurement Contracts > Amendments • Enter the search criteria information and click the Search button • Under ‘details’ there is a link at the right entitled “Generate Summary Report” – this will produce the STS
Creating a Contract Amendment Key Points • An Amendment cannot be created in SFS until the original Contract is approved (sequence 000). • As with a Contract, if OSC approval is required, the agency will print the STS and submit to OSC.
Creating a PO to Associate to a Contract Key Points
Creating a PO to Associate to a Contract Key Points • A contract must be established and have a status of “Requested PO” before a PO can be created against it. • Funds are encumbered in the SFS on the Purchase Order – not the contract. • Be certain to match the vendor on the PO to the vendor on the contract. • The PO Type determines the approval route of the Purchase Order. The initial PO Type for the PO should be the same as the contract. Subsequent PO Types can be different (ECC). • A Department must be entered in the Department Field for reporting purposes. • When associating a PO to a contract it is necessary to enter both the contract ID (on the Contract tab) and the sequence number (using the Contract Details link)
Creating a PO to Associate to a Contract Key Points (continued) • The PO Default page must be used. Click the PO Default link to validate the business unit used for the contract. Then click the OK button . This will save the contract to allow POs to be created and associated to the contract.
Key Points – Contract Lines • Contract lines are not recommended. Lines should only be added to POs. Refer to PO220 for more details on POs.
Resources • Contracts information on the OGS website: http://www.ogs.ny.gov/purchase/pdfdocument/Guide.pdf. • OGS contract information is available electronically. Anyone can sign up for the online purchaser notification service (PNS), located on the OGS website at http://ogs.ny.gov. • Contracts and Amendments training materials at: SFS Training Courses.
