Statewide Financial System Program 1 Contract Training – CN210 Contract Welcome to Contract Training

Statewide Financial System Program1

ContractTraining – CN210

ContractTraining – CN210

Welcome to Contract Training


Learning Objectives Upon completion of this course, learners will have the knowledge to:

• Understand contract roles within the SFS;• Understand contracts in the SFS;• Create a contract;• Edit a contract• Enter a contract amendment;• Approve a contract;• View contract information;• Locate available reports; and,• Locate additional training materials, job aids, and other useful

process-related information.


Contract Roles


Contract Roles PO Contract Processor– Enters contracts and amendments in the

SFS. There is no agency level workflow in the SFS for managing contracts. For a contract/amendment requiring OSC approval, the PO contract processor saves the contract and changes the status to Pending OSC Approval.

The PO contract processor can perform the following tasks in the SFS:

• Create a contract;• Create a contract amendment;• Change contract status to Pending OSC Approval;• View contract information;• View non-confidential vendor information; and• Look up vendor by TIN.

The PO Reports role provides the ability to access and print formatted Requisition, Contracts, and Purchasing reports.


Understanding Contracts

in the SFS


Understanding Contracts In the SFS, creating a contract/amendment is a two-step process:

1. A contract/amendment is created in the SFS.

2. A purchase order is created in the SFS to associate to the contract and encumber the funds.

Step-by-step instructions for creating a contract/amendment is further detailed in the “Create a Contract” section of this presentation.

In the first step, the agency must create the contract/amendment transaction in the SFS.

In the second step, the agency must create a purchase order transaction in the SFS to associate the PO to the contract/amendment and encumber the funds. BOC, as part of its audit, determines if the intended encumbrance amount complies with OSC encumbrance policy.


Understanding Contracts For contracts/amendments that require OSC approval, the Bureau

of Contracts (BOC) changes the contract/amendment transaction status to Requested PO. A PO can then be created by the agency to associate the contract/amendment and encumber the funds.

Contracts/amendments requiring OSC approval are not approved at the contract level in the SFS, but rather at the PO level.

There is no agency level workflow in the SFS for managing contracts.

Contracts/amendments created in the SFS do not have a financial impact. This is because the encumbrance is done on the PO (referred to as PO releases).


Understanding Contracts When a contract/amendment transaction does not require OSC

audit and approval, the following steps are taken:

• The agency creates the contract/amendment transaction in the SFS;

• The agency selects the appropriate Audit Type for the transaction and submits the transaction;

• The agency updates the status to Requested PO; and,• The agency submits the PO.


Understanding Contracts In the SFS, a contract consists of two main components: the

contract header and the contract order options.

The contract header captures the contract audit type, contract vendor information, contract term, and contract value (maximum amount).


Understanding Contracts The second component of the contract in the SFS provides for

contract order options. Use of this section is covered in the “Create a Contract” section of this presentation.


SFS Integration Points

The flowchart below represents a high-level view of how the SFS Purchasing (PO) module integrates with other SFS modules. Contracts are created within the Purchasing module.


The table below lists key concepts of the Statewide Financial System related to contracts.

SFS Contract Terms and Concepts

Term/Concept Definition

Procurement Contract

Document used to establish an agreement with a vendor for the purchase of goods and/or services.

Audit Type Replaces the batch type as the value that determines if a transaction must be routed to OSC for approval.

Amendment Document used to modify the terms, conditions, and/or contract amounts related to a formal contract agreement between a vendor and the state entity.

Amendment Sequence Number

Uniquely identifies each transaction (amendment) against the original contract (sequence 000). The sequence number is required when creating a PO to encumber funds against a contract.


Contract Types


Contract Types – Process in the SFS

New York State Master Contract

A master contract, previously referred to as a Centralized Contract, is created by the Office of General Services (OGS).

Once OGS master contracts are approved and posted on the OGS website, all eligible entities can access them.

Agencies create a PO in the SFS against a master contract using the agency’s Business Unit and entering the master contract ID in the appropriate field of the PO transaction.


Contract Types – Process in the SFS

Revenue Contracts A revenue contract is first submitted as a procurement contract in

the SFS. OSC will only approve revenue contracts when they are submitted as a procurement contract in the SFS.

Entering a customer contract in the SFS allows the tracking of receipts related to a bill. Revenue receipts can have the procurement contract ID included, so a customer contract is not required for this. For creating and activating a customer contract refer to Job Aid JAA-CC201-006.

The contract type determines if the contract requires BOC approval. When a revenue contract is amended, a new transaction is created

with a new contract number.


Creating a Contract


Creating a Contract It is recommended to validate the vendor prior to creating a contract.

To validate a vendor, navigate in SFS Financials to:

Vendors > Vendor Information > Add/Update > Review Vendors Navigation to create a contract in SFS Financials:

Purchasing > Procurement Contracts > Add/Update Contracts > Select the Add a New Value tab


Creating a Contract On the Contract Entry page, a Contract ID must be entered. The

contract ID naming convention consists of a five-character valid Business Unit (BU), a one-to-ten alpha numeric contract ID that includes the contract prefix, and a seven-character valid department ID.


Creating a Contract

The SetID field is always SHARE. Do not change.

The contract status field displays where the contract is in the contract lifecycle.


Creating a Contract The Audit Type determines the approval process in the SFS. Enter

the appropriate Audit Type using Job Aid JAA-PO000-008 Audit Type – Value Definitions.

Enter the contract vendor, contract term (begin/expire date), contract amount (maximum amount), and description.


Creating a Contract Complete the Contract Order Options section as follows:

• Uncheck the Allow Multi Currency PO option;• Check Corporate Contract if the contract will be used by multiple

business units. Uncheck if the contract is specific to only the agency’s BU;

• Check the Allow Open Item Reference Option; and,• Check the Price can be Changed on Order option. If this box

remains unchecked, the contract can only be changed by quantity and not amount.


Creating a Contract The PO Defaults page must be used to validate the business unit

(BU) for the contract by clicking the PO Defaults. After validation, click OK to return to the main page and then click Save.

For a contract with an audit type selected that does not require OSC approval, the SFS will automatically change the Status to Requested PO. When the status is Requested PO, a purchase order can be entered and associated to the Contract.


Creating a Contract If the contract/amendment requires OSC approval, be certain to

change the status to Pending OSC Approval and save again. No edits can be made once the status is changed.

For contracts/amendments requiring OSC approval, it is also necessary to generate a Single Transaction Summary (STS) report. This form must be submitted to OSC with the contract agreement and required procurement record documentation.


Single Transaction Summary (STS) Report


Single Transaction Summary (STS) For transactions which require that funds be encumbered, the

agency indicates on the bottom of the STS the intended encumbrance amount.

The Guide to Financial Operations, Chapter 11.4.B, provides directions on how to complete this form:

http://www.osc.state.ny.us/agencies/guide/MyWebHelp The agency submits the procurement documents (hard copy) to the

OSC Bureau of Contracts (BOC), accompanied by the Single Transaction Summary (STS) report.

Navigation to generate the STS in the SFS: Navigate to Purchasing > Procurement Contracts > Amendments; Enter the search criteria information and click the Search button;

http://www.osc.state.ny.us/agencies/guide/MyWebHelp

http://www.osc.state.ny.us/agencies/guide/MyWebHelp


Single Transaction Summary (STS)

Under Details there is a link at the right entitled Generate Summary Report – this will produce the STS.


Create a Contract Demo


Learning Exercise

Create a Contract

You have been asked to create a contract.

The trainer will walk learners through steps to access the Training Environment.

Create a contract now.

30min

Note: Please refer to your exercise sheet handouts which contain the data you

need to complete this activity. The job aid on the SFS website can be used to assist you.


Editing a Contract


Editing a Contract A contract/amendment cannot be edited once the Status has been

changed to Pending OSC Approval.

Navigation to edit a contract in SFS Financials:

Purchasing > Procurement Contracts > Add/Update Contracts > Select the Find a New Value tab

Enter the search criteria and click Search.

The contract can now be edited.


Amending a Contract


Amending a Contract An amendment cannot be created against a contract in the SFS

until a PO associated to the original contract is approved.

To amend a contract in SFS Financials navigate to :

Purchasing > Procurement Contracts > Amendments > Add/Update Contracts > Select the Add a New Value tab


Amending a Contract Enter the Contract ID for the contract to be amended or use the look

up button.

The sequence number will automatically update with the next available number. This sequence number will be needed to create a PO and encumber funds against the contract.

Only edit/change the fields that need to be modified pursuant to the contract amendment.


SFS Resources at www.sfs.ny.gov

Resource SFS Web Location

SFS Report Guide Reporting Toolkit

Training Courses, Job Aids, Quick Start Guides, and Supplemental Training Presentations

Training Toolkit

Chart of Accounts Chart of Accounts and Commitment Control Toolkit

Information regarding OSC financial processes is located in the OSC Guide to Financial Operations at www.osc.state.ny.us/agencies/guide/MyWebHelp/


Questions


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Course Evaluation


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Documents

Statewide Financial System Program 1 Contract Training – CN210 Contract Welcome to Contract Training