Sometimes a vendor may invoice a product at a different price than the contracted price. In these cases, the system can warn that a contract violation has occurred. Once a contract price is set for a vendor item, the system automatically validates it when users enter invoices and highlights violations during a check run.
Setup
Set vendor contract prices on vendor item records individually or by mass import.
Set a Contract Price on a Vendor Item Record
Follow these steps to set contract prices on individual vendor items:
Click steps to expand for additional information and images.
1) Navigate to the Vendor items page.
Open the Inventory app
Expand the Items category
Select Vendor items
2) Double-click the row of the desired item to open the vendor item record.
3) Fill in the contract fields.
Contract Price - The agreed upon price of the item, based on the Purchase U of M on this record
Split Contract Price - The agreed upon split price of the item, based on the Split U of M on this record
Contract Expiration - The expiration date of the contract
Price Validation will only occur on Invoices that have an Invoice Date within the contract period
Acceptable Variance % - A percentage that is an acceptable variance that you don't consider a contract violation
4) Save the record.
Mass Import Contract Prices
Follow these steps to update contract prices on many vendor items at once:
Click steps to expand for additional information and images.
1) Navigate to the Vendor items page.
Open the Inventory app
Expand the Items category
Select Vendor items
2) Click the 
Excel icon in the upper right-hand corner above the list. This exports a CSV file that Excel can open.
Excel icon in the upper right-hand corner above the list. This exports a CSV file that Excel can open.
3) In the exported file, enter the Vendor Contract Price, Contract Expiration, Split Contract Price, and Acceptable Variance Percentage, and then save the file.
4) Navigate to the R365 Import page.
Open the Admin app.
Click Import in the Import category.
5) In the Import window, enter 'Vendor Item' in the Options field and 'Update Existing' in the Type field.
6) Click Upload File and select the updated file.
Learn more about the R365 Import Tool.
Contract Violation on AP Invoice
When entering an AP invoice, the system verifies vendor item contract prices. It identifies a contract violation if both of these are true: the 'Each Amount' on the invoice row is different from the Contract Price on the vendor item by more than the Acceptable Variance %, and the date on the invoice is less than the Contract Expiration date on the vendor item.
If a contract violation is identified, the invoice displays alerts in-line on the Line items tab as well as on the Alerts tab. Hovering over an alert displays the acceptable price range and a link to the vendor item record.
Contract Violation on Check Run
The Check Run screen highlights invoices with contract violations to alert users who may not wish to pay invoices that violate the contract. Hovering over the invoice on the Check Run also displays a tool tip that lists the items that violate the contract.