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DISTRIBUTED EXTERNAL SALES CONTRACTS
DESK PROCEDURES
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Table of ContentsOverview.....................................................................................................................................................................2
Roles and Responsibilities Applicable to Business Process..........................................................................................4
Financial Policies and Procedures................................................................................................................................4
Request for External Sales Contract Approval.............................................................................................................5
External Sales Contract Approval Request..............................................................................................................6
External Sales Contract Management.........................................................................................................................7
Contract Execution..................................................................................................................................................8
Contract Cancellation..............................................................................................................................................8
Add Cancellation Notes.....................................................................................................................................11
Contract Activation...............................................................................................................................................14
Contract Amendment........................................................................................................................................20
Billing Plan Updates...........................................................................................................................................23
Add Billing Events..............................................................................................................................................24
Process the Amendment...................................................................................................................................26
Attach Contract Image.......................................................................................................................................29
Activate the Contract.........................................................................................................................................32
Monitor Contracts.....................................................................................................................................................33
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Overview
The Externals Sales Contract Management business process consists of both manual and EFS sub processes. The management of the sales contracts will be completed in the Customer Contracts module of PeopleSoft.
The Customer Contracts module, for these business purposes, supports the tracking and oversight of the Sales Contracts to customer external to the University of Minnesota. There is also integration with the Billing module that will provide oversight for sales activities at both the Approval and Contract level.
This document will walk the user through all of the sub-processes that are associated to the department/college/cluster processes related to the External Sales business process
Oversight of External Sales Contracts System entry/updates for External Sales Contracts
Frequency As Needed
Module/Tables Customer Contracts
Documents Used Contracts
Approval Points Contract request
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Roles and Responsibilities Applicable to Business ProcessRequest for Approval – Initiating University of Minnesota DepartmentRequest for External Contract – Initiating University of Minnesota DepartmentManual reviews and approvals – Office of Internal and External Sales, Office of the General CounsilSystem Entry of Contracts and Amendments – Office of Internal and External SalesContract oversight and maintenance – Sales department or college
Financial Policies and Procedures
External Sales Policies and Procedures
Selling Goods and Services to External Customers
Conducting External Sales Activity
Establishing an External Sales Accounting Structure
Establishing External Sales Rates
Establishing External Sales Agreements (Contracts)
Unrelated Business Income Tax Procedures, and Collecting and Remitting Minnesota Sales Tax on External Sales Transactions
Selling University-Developed Software and Services
Internal Sales Policies and Procedures
Selling Goods and Services to University Departments
Obtaining Approval to Conduct Internal Sales Activity
Establishing an Internal Sales Accounting Model
Establishing Internal Sales Rates
Unit Review of Internal Sales Activity
Internal Sales Office Review of Internal Sales Activity
Capital Equipment Acquisition: ISO Capital Equipment Purchases
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Request for External Sales Contract Approval
A University department or college will submit a request for permission to sell specific goods or services, associated to an already received External Sales Approval, to a specific Customer external to the University of Minnesota. These contract requests are entered into the EFS System, for tracking purposes, during the review process lead by the Office of Internal and External Sales.
Roles Applicable to Sub Process
● Initiating Department or College
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● Office of Internal External Sales
External Sales Contract Approval Request
Detailed description: This process is accomplished mainly outside of the EFS system. It begins with a need to sell specific goods or services to a specific customer that is external to the University of Minnesota.
1. The paper contract for the sales of goods or services external to the University of Minnesota is drafted
2. The EFS external customer number is identified, if it is not an existing customer one will need to be set up using the customer request process
3. The draft contract is sent to the Office of Internal and External Sales for review, EFS entry and approval or denial to sell. The request must include;
a. Valid EFS Customer Numberb. ESAF Approval Numberc. Chartstring Info
The review, entry and approval/denial process will be conducted in the Office of Internal/External Sales. Once the review process is completed a notification will be sent via e-mail of the approval or denial of the request to sell goods or services to the customer external to the University of Minnesota along with the Contract Number (OES#) assigned to the Approval or Denial
If the request is denied there is no further action required by the selling unit. If the request is approved the Contract management process begins.
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External Sales Contract Management
The external sales contract management and oversight will happen within the EFS system through the use of on page navigations and updates and the use of public queries.
Roles Applicable to Sub Process
● Initiating Department or College
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Contract Execution
The contract execution process happens external to EFS. This is the process in which the terms and conditions are agreed to and signatures are obtained. Any re-negotiation of terms, dates or amounts need to be approved by the Office of Internal and External Sales.
If the contract is not executed and will not generate any sales activity the contract will be cancelled in EFS.
If the contract is fully executed, terms and conditions agreed to and signatures obtained the contract details will be updated within EFS and oversight will begin.
Contract CancellationIn the event that a contract is not executed with the external customer the Contract will need to be Cancelled in EFS
Navigation: Customer Contracts > Create and Amend > General Information
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Customer Contracts General Information Search page
Field Values and Search Criteria Descriptions for the Customer Contracts Add a New Value page
Field Values Entered Description
Business Unit UMN01 UMN01 is the business until for all External Sales Activities
Contract Value Varies If you know the OES# that was assigned on initial entry you can enter or partially enter it in this field to reduce the number of values returned
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(e.g. %12504 or OES000000012504)
Description Value Varies If you know the Description that was entered upon set up you can enter or partially enter it in this field
Sold To Customer Value Varies If you know the Customer ID used enter it here to help reduce the returned values
Customer name Value Varies If you know the Customer Name you can enter or partially enter it here
Contract Status PENDING_DEPARTMENT
For this sub process the Contract should always be in PENDING_DEPARTMENT status
Processing Status Value Varies Populating this field alone will not help to reduce the number of Contracts returned in the search. For this sub process the value would be Active
Contract Type Value Varies If you know the value that was entered upon initial set up select it from the look up
Contract Classification
Standard All contracts have a classification of Standard, populate of this field will not help to reduce the number of returned data rows
Region Code Value Varies Available values are DOMESTIC, INTL or TRIBAL
Contract Administrator
Value Varies This field will be the units responsible party
Master Contract# Value Varies This would be the associated Approva/ESAF #
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1. Enter the fields on the search page according to the table suggestions and select the Search
pushbutton. Based on the values entered on the search page either the list of values will be returned at the bottom of the page and available for selection or the Contracts General Information page will be displayed on screen for the specific Contract.
Add Cancellation Notes
Customer Contracts General Information Page
2. From the More drop down section select the “Internal Notes” value, the Notes page will be displayed
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Field Values Entered Description
Component Contract Header (defaults)
Always Contract Header
Classification Custom This field must be updated to a value of Custom in order to enter text in the body
Note Type <blank> Do not populate a value in this field
Text Value Varies Enter any text as explanation of why the contract is not being executed
3. Change the Classification field to a value of Custom using the drop down selection
4. Enter text and select Save 5. Select the “Return to General Information” hyperlink, the page will refresh and the
Contract General Information page will be displayed again
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6. Change the Contract Status to a value of “Cancelled” and save the change
END OF BUSINESS PROCESS
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Contract ActivationAfter the contract has been fully executed the system will require updates
Navigation: Customer Contracts > Create and Amend > General InformationCustomer Contracts General Information Search page
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Field Values and Search Criteria Descriptions for the Customer Contracts Add a New Value page
Field Values Entered Description
Business Unit UMN01 UMN01 is the business until for all External Sales Activities
Contract Value Varies If you know the OES# that was assigned on initial entry you can enter or partially enter it in this field to reduce the number of values returned
(e.g. %12504 or OES000000012504)
Description Value Varies If you know the Description that was entered upon set up you can enter or partially enter it in this field
Sold To Customer Value Varies If you know the Customer ID used enter it here to help reduce the returned values
Customer name Value Varies If you know the Customer Name you can enter or partially enter it here
Contract Status PENDING_DEPARTMENT
For this sub process the Contract should always be in PENDING_DEPARTMENT status
Processing Status Value Varies Populating this field alone will not help to reduce the number of Contracts returned in the search. For this sub process the value would be Active
Contract Type Value Varies If you know the value that was entered upon initial set up select it from the look up
Contract Classification
Standard All contracts have a classification of Standard, populate of this field will not help to reduce the number of returned data rows
Region Code Value Varies Available values are DOMESTIC, INTL or TRIBAL
Contract Administrator
Value Varies This field will be the units responsible party
Master Contract# Value Varies This would be the associated Approva/ESAF #
Enter the fields on the search page according to the table suggestions and select the Search
pushbutton. Based on the values entered on the search page either the list of values will be returned at the bottom of the page and available for selection or the Contracts General Information page will be displayed on screen for the specific Contract.
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Contract General Information page
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Field Values Entered Description
Contract Number Value Varies (view only)
Field will display the assigned Contract Number
Amendment Number
Value Varies (view only)
If the Contract has been amended the amendment number that the contract is on will be displayed
Sold To Customer Value Varies (view only)
The external customer name will display in this field
Hint: hover over the field to display contact info
Contract Status PENDING_DEPARTMENT
At this stage of the business Process the status should always be PENDING_DEPARTMENT but it will be updated in a later step
Description Value Varies This is a 30 character (short description) of the sales activity
Contract Admin Value Varies This should be the units contact person for the sales activity
Region Code Value Varies This field represents the physical area of the sold to contract (DOMESTIC, INTL, TRIBAL) and is used for reporting purposes by the central department. Do not change the value in this field
Contract type Value Varies This field represents the type of sales activity that is happening on the contract. Do not change this value without prior consent from the central office
Currency Code USD Always USD
Exchange Rate Type
CRRNT Always CRRNT
Contract Signed Value Varies This field initially defaults to the date the contract is entered into EFS, but it will be updated to the actual date all signatures were obtained
Contract Role <blank> Always Blank
Revenue Profile <blank> Always Blank
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Processing Status Value Varies (view Only)
Field will default to values based on the Contract Status
Amendment Status Value Varies (view Only)
Field will default based on the status of the most recent contract amendment
Business Unit University of Minnesota (view only)
Always for this business process
Contract Classification
STANDARD Will always be standard
Start Date Value Varies Defaults from the Contract Lines
End Date Value Varies Defaults from the Contract Lines
Last Update Date/Time
Value Varies Shows the last time that the contract was accessed, not necessarily the last time a change was made
Last Update User ID
Value Varies Displays the oprid of the last person to access the Contract
Separate Fixed Billing and Revenue checkbox
Unselected/not checked
Always unchecked
Separate As Incurred Billing and Revenue checkbox
Unselected/not checked
Always unchecked
Sales Information Section
Activity Description
Value Varies This is the long description of the sales activity covered by the contract, 254 characters
Received Date Value Varies This is the date that the initial Sales Contract was received in the Central Office
DO NOT CHANGE this date
Notification Date Value Varies This is the date the Approval or Denial of the Sales Contract is sent to the initiating department
DO NOT CHANGE this date
Form Value Varies This is the OGC approved form that was executed
DO NOT CHANGE this value
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Non Standard Value Varies This field will be used by central to identify non standard agreements
DO NOT CHANGE this value
Amended Value Varies This field will be used by central to identify amended agreements and as a part of the original conversion
DO NOT CHANGE this value
Confidentiality Agreement
Value Varies This field will be used by central to identify agreements that have imbedded CA’s or Contracts that are just CA’s
DO NOT CHANGE this value
Other Information Section
Template Contract Unselected/not checked
Do Not Use
Master Contract Unselected/not checked
Do Not Use
Legal Review Complete
Value Varies Do Not Change value, field is used as part of a central business process.
Credit Check Complete
Unselected/not checked
If your department completes some sort of a credit check to determine if you should do business with the customer you can use this field to document the action
Contains Cotermination Lines
Unselected/not checked
Do Not Use
Parent Contract Value Varies This field will be populated on converted contract amendments to link the amendments to the original sales contract. There may be use for this field in the future as well
Master Contract Value Varies This field will be populated with the number of the ESA Approval
Legal Entity REGENTS Always
Purchase Order Value Varies If you need to record a PO # it can be done in this field
Proposal ID <blank> Do not use as part of this business process
Federal Region Code
<blank> Do not use as part of this business process
Summary of Only addressing fields that apply to this business process
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Amounts Section – Billing Amounts
Billing Amounts Total
Value Varies This value is equal to the contract amount agreed to, if the contract is based on rates the amount will display as 0.00
Contract Amendment
1. On the Contract General Information page select the Amend Contract pushbutton
, the Contract Amendments page will be displayed and a new Pending Amendment will be open and available for edit.
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Field Values Entered Description
Amendment Type Change Contract Line
The value for this process will always be;
Change Contract Line
Reason Administrative The value for this process will always be;
Administrative
Process Date Current Date Always populate it with the current date
2. Populate the 3 fields based on the recommendations in the table above
3. Select the Save pushbutton4. Select the General Tab, the Contracts General Information page will be displayed and fields will be open
and available for edit.
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1. Update/verify the values in General Info fieldsa. Description = A descriptive value of the sales activity that will be helpful to you in queries for sight
recognition. Limited to 30 charactersb. Contract Admin = the responsible person in the unit for the Contract managementc. Contract Signed Date = change to the date that the last signature was obtainedd. Activity Description = A longer descriptive value of the sales activity, limited to 254 characters
2. Save the changes 3. Select the Lines tab
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Billing Plan Updates
4. Select the Detail tab5. Select the Billing Plan hyperlink titled “Pending”, the Billing Plan General Information page will be
displayed
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NOTE: No Changes are required on this page
Field Values Entered Description
Description Value Varies Update this field to be a value that will be helpful to the billing specialist when creating invoices to identify the correct billing plan to invoice against. Suggest using the product value
(e.g.11907_001732 which is a combination of the DepID followed by an underscore followed by the last 6 digits of the ESAF/Approval Contract Number)
Billing Specialist Value Varies For informational purposes only you can select the Billing Specialist that will be responsible for creating any invoices
Billing Amount Value Varies Confirm that this value matches the agreed to amount in the paper contract
1. Populate the fields according to the table recommendations
2. Save the changes 3. Select the “Events” tab, the Billing Events page will be displayed. Make a determination if you want to
establish Billing Events as a reminder to send requests to the billing specialist when Invoices are due. If you do not want to use billing events skip forward to the Process Amendment section of this document
Add Billing Events
4. Select the Add New Event pushbutton, the page will refresh and a single billing event row will be displayed
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Field Values Entered Description
Percent radio button
Value Varies Select this radio button if your contract is based on rates
Amount radio button
Value Varies Select this radio button if your contract is amount based
Event Type will Date Always use Date
Event Status Pending Always use Pending. Can be updated to Ready when invoice request is sent to the billing specialist if you chose
Event Date Value Varies Populate this field with the date that the invoice request should be sent
Percentage <blank> Leave blank
Amount Value Varies If the Amount radio button is selected above this field will be open for edit and can be populated with the amount that the corresponding invoice should be created for.
+ pushbutton Use this to add additional billing event lines
NOTE: No fields are required to be populated on this page
5. Populate the fields according to the recommendations in the table
6. Save the changes7. Select the Return to General Information hyperlink located above the Save pushbutton, the Contract Lines
page will be brought to the screen
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Process the Amendment
1. Select the Amendments tab, the Amendments page will be displayed
2. Locate the Pending Amendment line3. Select the “Detail” hyperlink located in the Detail column, the Amendment Details page will be displayed
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4. Change the Amendment Status to “Ready” using the drop down selector, the page will refresh
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5. Select the Process Amendment pushbutton, the Amendment will process and the page will refresh updating the Amendment Status to Complete
6. Verify the Complete status7. Select the “Return to General Information” hyperlink, the Amendments page will be displayed
8. Verify the Amendment Status was updated to Complete
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Attach Contract Image
1. In the Go To More drop down section, select Attachments. The Contract Attachments page will be displayed
Field Values Entered Description
Attached File Value Varies This field will populate with the name of the file that you attach in later steps
Description Value Varies If wanted you can enter in a description of the file that you attach (e.g. Fully Executed Contract)
Line Value Varies If wanted you can populate this field with a numerical
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sequence number
Paperclip icon Select this icon to add an attachment
2. Select the paperclip icon, the File Attachment pop up box will be displayed on the screen
3. Select the Choose File pushbutton, the Open file explorer page will be displayed on your screen
4. Navigate to the location that the executed contract has been saved and double click on the attachment. The page will refresh and the File Attachment pop up window will be displayed again with the file you chose populated.
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5. Select the Upload pushbutton, the page will refresh and the Attachments tab will again be displayed with the attachment attached
Field Values Entered Description
Trash Can Icon Select this icon to delete the file that was attached
Paper with Glasses Icon
Select this icon to view the attachment
6. Select the Save pushbutton
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Activate the Contract
1. Using the Look Up on the Contract Status field change the status to Active
2. Save the change
END OF BUSINESS PROCESS
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Monitor ContractsThe process of monitoring the contracts will be done using public queries. These queries will help make the determination when invoices need to be created, amendments initiated, new contracts executed or the closing of contracts
Roles Applicable to Sub Process
● Initiating Department or College
FSRPT
Query Name
Prompts Description
EXT_SALES_BILLED_DTL ESAF RRC
ESAF zDeptID
ESAF DeptID
ESAF Contract #
OES Contract #OES
Contract StatusOES
Customer
This query will give you a list of invoices created by OES Contract
NOTE: That this query will only return invoices that were created following the Billing for external sales activity Job Aid steps located at http://controller.umn.edu/training/index.html
Customer Name can be used as an Advanced Lookup on the Customer field
EXT_SALES_BILLED_SUMM ESAF RRC
ESAF zDeptID
This query will provide a total billed by OES Contract as well as a remaining amount to be billed for Amount Based contracts
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ESAF DeptID
ESAF Contract #
OES Contract #
OES Contract StatusOES
Customer
NOTE: That this query will only return invoices that were created following the Billing for external sales activity Job Aid steps located at http://controller.umn.edu/training/index.html
Customer Name can be used as an Advanced Lookup on the Customer field
EXT_SALES_BY_END_DT ESAF RRC
ESAF zDeptID
ESAF DeptID
ESAF Contract #
OES Contract #
OES Contract End Date:(REQUIRED)
This will proved a list of Contracts that are ending on or before the date populated in the prompt. This query can be used to manage upcoming contracts that need to be extended/renegotiated
EXT_SALES_BILLED_NO_CNTRCT ESAF RRC
ESAF zDeptID
ESAF DeptID
ESAF Contract #
Customer ID
This query will provide invoice detail for external sales that do not require a contract (OESxxxxxxxxxxxx).
NOTE: That this query will only return invoices that were created following the Billing for external sales activity Job Aid steps located at http://controller.umn.edu/training/index.html
Customer Name can be used as an Advanced Lookup on the Customer ID field
IESAF_APPROVALS* Business Unit
UM Department
Contract Signed Date (From)
Contract Signed Date (To)
Contract Admin
Contract Status
This query will provide a list of all Internal and External Approval Contracts.
NOTES:
Business Unit:o UMNIS = Internal Sales Approvalso UMN01 = External Sales Approvals
UM Department is the combination of UM and the selling departments DeptID (e.g. UM10869 = CBS ECOLOGY, EVOLUTION, BEHAVR)
OES_ALL_CONTRACTS* Contract Status
IESAF Contract
DeptID
Received Date >=
Signed Date >=
Start Date >=
End Date <=
This query will provide a list of all External Sales Contracts pertinent information
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* Query was built based on the Office of Internal and External Sales requirements to manage their business. Queries are available for public use.
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