Vendor Contract Price Verification

Sometimes a Vendor may invoice a product at a different price than they have contracted with you. In these cases, the system can warn you that a contract violation has occurred. Setting up a contract price for a Vendor item is simple, and once set, the system will automatically validate it when Invoices are entered and highlight violations during a check run.

Setup

Vendor contract prices are set on Vendor Item records and can be done individually or mass imported.

Vendor Item Record

To set individual Contract Prices, navigate to the Vendor Items list by clicking 'Vendor Items' under 'Inventory' in the Operations module and double-click the row of the item that has a Contract Price. Populate the fields associated with the contract and then save the record.

1. Contract Price - The agreed upon price of the item, based on the Purchase U of M on this record

2. Split Contract Price - The agreed upon split price of the item, based on the Split U of M on this record

3. Contract Expiration - The expiration date of the contract

   Price Validation will only occur on Invoices that have an Invoice Date within the contract period

4. Acceptable Variance % - A percentage that is an acceptable variance that you don't consider a contract violation

Mass Import

Vendor items can be mass updated by importing a CSV file. To update these items, first export the list by opening the Vendor Items list. Then, click the Excel iconin the upper right-hand corner above the list. This will export a CSV file that can be opened in Excel.

In the exported file, enter the Vendor Contract Price, Contract Expiration, Split Contract Price, and Acceptable Variance Percentage, and then save the file.

To import, hover over Administration in the top ribbon and click 'Import'. In the Import window, enter 'Vendor Item' in the 'Options' field and 'Update Existing' in the 'Type' field. Click 'Upload File' and select the updated file. Click here for more information on the Import Tool.

Contract Violation on AP Invoice

When entering an AP Invoice, Vendor Item contract prices will be verified and a contract violation will be identified if 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 will display the following alerts:

• An alert pops up at top of the Invoice that the transaction contains items outside of acceptable variance. Specific rows that are in violation will be highlighted
   

• Hovering over the Vendor Item on that row will display a comment of the Contract Price and the Acceptable Variance Percentage
   

To view the Vendor Item details and/or change the Vendor Item contract values, click the Vendor Item link on the row and it will open the record.

Contract Violation on Check Run

Invoices with contract violations will be highlighted on the Check Run screen to alert Users who may not wish to pay invoices that violate the contract. Hovering over the invoice on the Check Run will also have a tool tip that lists the items that violate the contract.