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Distributed External Sales contractsDesk Procedures

Table of ContentsOverview2Roles and Responsibilities Applicable to Business Process4Financial Policies and Procedures4Request for External Sales Contract Approval5External Sales Contract Approval Request6External Sales Contract Management7Contract Execution8Contract Cancellation8Add Cancellation Notes11Contract Activation14Contract Amendment20Billing Plan Updates23Add Billing Events24Process the Amendment26Attach Contract Image29Activate the Contract32Monitor Contracts33

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

Roles and Responsibilities Applicable to Business Process

Request for Approval – Initiating University of Minnesota Department

Request for External Contract – Initiating University of Minnesota Department

Manual reviews and approvals – Office of Internal and External Sales, Office of the General Counsil

System Entry of Contracts and Amendments – Office of Internal and External Sales

Contract 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

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

· 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 Number

b. ESAF Approval Number

c. 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.

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.



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 Cancellation

In 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

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

(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 #

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

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

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

6. Change the Contract Status to a value of “Cancelled” and save the change

END OF BUSINESS PROCESS

Contract Activation

After the contract has been fully executed the system will require updates

Navigation: Customer Contracts > Create and Amend > General Information

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

(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


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.

Contract General Information page

Field

Values Entered

Description

Contract Number

Value Varies (view only)

Field will display the assigned Contract Number

Amendment Number


If the Contract has been amended the amendment number that the contract is on will be displayed

Sold To Customer


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

Always Blank

Revenue Profile

Always Blank

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


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


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

Non Standard

Value Varies

This field will be used by central to identify non standard agreements


Amended

Value Varies

This field will be used by central to identify amended agreements and as a part of the original conversion


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


Other Information Section

Template Contract


Do Not Use

Master Contract


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


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


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

Do not use as part of this business process

Federal Region Code

Do not use as part of this business process

Summary of Amounts Section – Billing Amounts

Only addressing fields that apply to this business process

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.

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 pushbutton

4. Select the General Tab, the Contracts General Information page will be displayed and fields will be open and available for edit.

1. Update/verify the values in General Info fields

a. Description = A descriptive value of the sales activity that will be helpful to you in queries for sight recognition. Limited to 30 characters

b. Contract Admin = the responsible person in the unit for the Contract management

c. Contract Signed Date = change to the date that the last signature was obtained

d. Activity Description = A longer descriptive value of the sales activity, limited to 254 characters

2. Save the changes

3. Select the Lines tab

Billing Plan Updates

4. Select the Detail tab

5. Select the Billing Plan hyperlink titled “Pending”, the Billing Plan General Information page will be displayed

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

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

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 changes

7. Select the Return to General Information hyperlink located above the Save pushbutton, the Contract Lines page will be brought to the screen

Process the Amendment

1. Select the Amendments tab, the Amendments page will be displayed

2. Locate the Pending Amendment line

3. Select the “Detail” hyperlink located in the Detail column, the Amendment Details page will be displayed

4. Change the Amendment Status to “Ready” using the drop down selector, the page will refresh

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 status

7. Select the “Return to General Information” hyperlink, the Amendments page will be displayed

8. Verify the Amendment Status was updated to Complete

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 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.

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

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

Monitor Contracts

The 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



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

ESAF DeptID

ESAF Contract #

OES Contract #

OES Contract StatusOES

Customer

This query will provide a total billed by OES Contract as well as a remaining amount to be billed for Amount Based contracts


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).


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:

· UMNIS = Internal Sales Approvals

· 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

* 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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