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Creation and Benefits of Procurement Contracts in PeopleSoft 9.2

As part of Quest Experience Week—PeopleSoft Day, Roush Enterprises spoke about the creation and benefits of Procurement Contracts in PeopleSoft 9.2.

About Roush Enterprises

Roush is an engineering company with over 3,500 employees in over four countries with 49 facilities. On the purchasing side, Roush has roughly 29,700 purchase orders, 78,500 line items, and 15,800 requisitions annually.

Roush self-implemented PeopleSoft 7.5 at the end of 1999, in preparation for the dreaded 2000. Now, in 2019, Roush is on PeopleSoft 9.2 PUM 23 and Tools 8.56. The company is committed to staying current as PUM updates become available and will soon be evaluating PUM 24 and PUM 25.

Roush has used Selective Adoption for numerous upgrades to a few different modules. They have 25 PeopleSoft programs installed, which are supported by the Roush internal ERP group comprised of programmers and analysts and supported by subject matter experts (SMEs) in each module.

Why Use Procurement Contracts?

There are several reasons Roush looked into Procurement Contracts. They lock in vendor pricing for defined items for a set time span, help eliminate match exceptions and aid in preventing price creep. Procurement Contracts can also provide automatic notifications to buyers and requesters about thresholds for contract amounts, balance, and expiration timing.

They keep the procurement management to a single Purchase Order to help with the ease of communication with the supplier and actions within Accounts Payable. Procurement Contracts also enable easy contract change tracking and version control. They also have the ability to define regular releases of a set quantity at specific times during the life of the contract.

Types of Procurement Contracts

PeopleSoft offers numerous styles of Procurement Contracts to meet the various needs within the purchasing community. Some include:

  • Recurring Voucher Contracts: Typically used for rent or utility payments.
  • Prepaid Voucher Contracts: Prepaid vouchers without an advance PO.
  • Purchase Order Contracts: Releases to individual POs using contract terms.
  • Release to Single PO Contract: Reserves one PO for the life of the contract.

To learn more about how to use these different types of Procurement Contracts, check out the full presentation from QXW, which is attached below.

Creation and Benefits of Procurement Contracts in PeopleSoft 9.2