Lets' first have a look on Smart Materials work process and also how agreements fits in that through the below tutorial:
The Agreements screen displays the existing agreements of the selected project with the agreement number and supplement, the agreement type, the assigned supplier and buyer, and the agreement status. Each agreement status is associated with a priority, and the agreements are sorted by this priority from high to low. The lower a priority number is, the higher is the priority and the more attention should be paid to it. For example, open and delayed agreements require more attention than agreements that are already closed. When grouping the agreements, the status with the highest priority of the grouped agreements is shown. For example, if there are delayed and approved agreements for a supplier, the supplier’s status will be Delayed.
Which agreements are displayed depends on your privileges (Buyer).
Only users with the BUYER privilege can be assigned to an agreement as a buyer. The buyer can display and maintain his own agreements, that is, the agreements where he is assigned as a buyer.
Procurement managers with the ASSIGN BUYER privilege can assign buyers to agreements. These managers can view all agreements of the project(s).
If you don't have either the BUYER or the ASSIGN BUYER privilege, no agreements appear in the tree.
Because privilege assignment can vary from project to project, the display of the agreements can be different depending on the selected project.
If sections are used, the displayed agreements are restricted to the sections assigned to you (Section).
Sections can be used to limit the number of agreements that are available for a user. Agreements without any section assigned are available for all users.
If a section is assigned to an agreement, this agreement only appears if you have permission for this section. The permission for sections can be assigned on the user security level or on the role level. If sections are assigned on the user security level, these sections are used to restrict the displayed agreements. If no section is assigned on the user security level, the software checks the roles assigned to the login user.
The user gets the most he is allowed due to his settings. That is, for example, if one user security for a project allows for only limited access due to the assigned section(s), and another user security for the same project allows full access, the user will have full access without any limitations with respect to sections. If at least one user security grants full access, the only restriction may come from any role assigned to the user. If at least one assigned role grants unlimited access, the sections are not limited.
On this screen, you can add or delete agreements, or select an agreement to edit. If you click an agreement, another window opens with the Agreement Data.
The category panel appears on the left and shows the available categories and sub-categories of the selected agreement, depending on the agreement type.
Click the category to view its sub-categories. Click the category again to hide the sub-categories. If you click a sub-category or a category that does not have any sub-category, it navigates to the corresponding section of the agreement details panel on the right side. The available categories are:
The agreement details are displayed and can be edited on the Agreement Details panel.
Allows you to edit information on the agreement header level like the agreement description, the assigned buyer, the supplier, and so forth.
Allows you to enter supplier details like company name, contact, manufacturer, and so forth.
Allows you to assign responsible persons (buyer, expediter, and so forth) to the agreement.
Allows you to add financial details (currency, incoterm, payment type, and budget) to the agreement.
Allows you to edit delivery details like routing method, delivery dates, and so forth. This section only appears for materials agreements (purchase orders).
The Status section displays the agreement status. Examples for the status include the ready for approval indicator, the technical evaluation complete date, the effective date, and so forth.
This section is only displayed for subcontract agreements.
Allows you to sign a subcontract. This section only appears for subcontract agreements.
Notice to Proceed Details
This section is displayed only for NTP (Notice to Proceed) agreements and for agreements that were created from an NTP, using the Switch Type button.
Allows you to enter and view post agreement data like inspection level, expediting level, and criticality level. This section does not appear for subcontract agreements and notices to proceed.
In the Attachments section, you can select the following options:
Documents can be attached to the agreement in the Documents section.
VDRs (Vendor Data Requirements) can be attached to the agreement in the VDRs section.
Text and Terms
Text and Terms can be attached to the agreement in the Text and Terms section.
In the Financials section, you can select the following options:
Other costs of an agreement such as freight or special fees that are not necessarily associated with the material purchased can be edited in the Other Costs section.
In the Total Costs section, you can see the total costs of the agreement, grouped by currency.
Progress Payment Events
Use the Progress Payment Events section to assign progress payment events to the agreement.
Use the Forecast Payments section to view the forecasted payments for the pre-defined progress payment events.
Schedule of Values
Use the Schedule of Values section to view and edit the schedule of values (price breakdown) information of the agreement.
In the Guarantees section, you can record the receipt and return of supplier guarantees. Guarantees can be entered or modified at any time. There is no limitation with respect to the approval of an agreement
The line items of the agreement are displayed and can be edited in the Line Items panel.
The item shipments of the agreement appear in the Item Shipments panel. This sub-category is not available for agreements of type subcontract.
On the Addresses panel, you can assign addresses of different address types to the agreement such as billing address, shipping address, and so forth.
On the Alternates and Options panel, you can specify alternative or optional items.
This category is only available for Subcontract agreements. It contains the following sub-categories:
Scope of Work
In the Scope of Work section, you can attach scope of work (SOW) descriptions to the agreement.
Scope of Work Milestones
In the SOW Milestones section, you can maintain SOW milestones and their details attached to the agreement.
Labor rates for subcontracts can be specified in the Labor Rates section.
Equipment rates for subcontracts can be specified in the Equipment Rates section.
Allowance rates for subcontracts can be specified in the Allowances section.
Variation rates are used to manage price changes. Variation rates can be specified in the Variation Rates section.
With closeout activities, you can specify a set of standard events that must occur before an agreement is considered closed. The closeout activities are assigned to the agreement in order to track and control activities to finalize and close the agreement.
Agreement detail panel
The details of the selected agreement appear on the agreement detail panel next to the category panel.
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