MyFloridaMarketPlace
10.0 Contracts (Master Agreements) – Instructor NotesCourse Overview / This course provides an understanding of the contracts module within MyFloridaMarketPlace, including how to set up contract information, create release orders against a contract, and how to track activity against a contract.
Length / 3.5 hours
MFMP Users / Contract Specialists, Purchasing Agents
Course Objective / After training, participants will be able to:
§ Set up contracts in MyFloridaMarketPlace
§ Modify contracts in MyFloridaMarketPlace
§ Create release orders/purchase against a contract
§ Track activity against a contract
Prerequisites / § Basic computer skills (ability to operate a keyboard and mouse)
§ Windows skills (ability to open, minimize, and close windows)
§ Internet skills (ability to use Netscape or Internet Explorer)
§ Knowledge of the FL procurement policies and procedures
§ 1.0 System Basics
§ 2.0 Requisitions
§ 7.0 Advanced Purchasing
Key Talking Points
Lesson 10.1 Create MAR at Supplier Level / § A Master Agreement (MA) at the Supplier Level means that the MA pricing terms are applied to all items purchased from a specific supplier.
§ Explain the difference between the system-generated MA ID vs. the Contract ID field on Step 1: Definitions.
§ Explain Release Required? in the Definitions page. Release Required? Determines whether or not the agreement applies to purchase orders. If a user selects the “Yes” option, the agreement will apply the appropriate discounts to a requisition created from the agreement. If a user selects the “No” option, the agreement terms do not apply to purchase orders, but allows invoices to be paid against the Master Agreement instead. Note: This field cannot be edited after the MAR has been fully approved.
§ Notification Limits – may be notified, via email, a specific number of days prior to the agreement’s Expiration Date or a specific percentage away from the agreement’s Maximum Commitment Amount.
§ Pricing Term Options – Percentage Discount or Tiered Pricing
§ Defining User Access – Explain Restrict Release Access. Restrict Release Access allows you to select specific users or groups of users to grant access to a specific agreement. If you do not use Restrict Release Access, the entire State of FL may see this contract and purchase off this contract in MyFloridaMarketPlace.
§ Ability to add attachments to a MAR. Maximum file size per attachment is 20mb and there is no limit on the number of attachments allowed.
Lesson 10.2 Create MAR at Commodity Level / § A Master Agreement (MA) at the Commodity Level means that the supplier has defined discounted pricing terms for specific commodity codes. Each commodity code in an agreement may have its own pricing terms associated with it.
§ Pricing Term Options – Percentage Discount or Tiered Pricing.
§ If an agreement has only one commodity code associated with it, the limits entered for that commodity code should match the overall limits established for the entire agreement in Step 2 of creating an MAR.
§ If an agreement has more than one commodity code associated with it, the limits entered for each commodity code must add up to the overall limits established for the entire agreement in Step 2 of creating a MAR.
Lesson 10.3 Create MAR at Item Level / § A Master Agreement (MA) at the Item Level means that the supplier has defined discounted pricing terms for specific items they offer. This agreement type will probably be the most commonly used.
§ Pricing Term Options – Percentage Discount, Tiered Pricing, or Negotiated Price.
§ Explain the Set Item Limits By field in Step 2: Limits page of creating an Item Level MAR. A user has two options in this field: Amount or Quantity. If a user selects “Quantity”, item limits will be based on the number of items ordered. If a user selects “Amount”, item limits will be based on the dollar amount purchased. What a user selects in this field will affect the item limit values they enter when defining pricing terms for each item in the agreement.
§ Explain Tiered Pricing Types available when creating Item Level MARs.
§ Amount Based Volume Discount – a type of tiered pricing, in which the agreement will obtain a discount percent based on the amount of money spent.
§ Quantity Based Volume Pricing – a type of tiered pricing, in which the agreement will obtain a discounted price based on the quantity ordered.
§ Quantity Based Volume Discount – a type of tiered pricing, in which the agreement will obtain a discounted percent based on the quantity ordered.
§ Explain Tiered Pricing Scope options when creating Item Level MARs. The scope option selected when defining tiered pricing terms for an item level MAR determines whether the discount levels apply on a per order basis or to the cumulative total or amount ordered during the life of the agreement.
Lesson 10.4: Blanket PO MAR / § When creating a master agreement, the user has the option to indicate whether the master agreement will be used to create blanket purchase orders. If this option is selected, the system will not generate an approval for all requisitions linked to the agreement.
o If encumbering the funds for the master agreement, the encumbrance must be completed directly in Departmental FLAIR. The encumbrance number and encumbrance line number must be recorded on the master agreement, either at the contract level (Definitions screen) or by the line item (Item level MA).
o If multiple encumbrances are necessary, an Item Level MA may be used or an accounting split can be performed to record the encumbrances.
§ When creating a release against a Blanket PO MA, the requisition approval flow is not generated. Upon submitting the requisition, the status will be updated to ‘Ordered’ and the order will be electronically submitted to the supplier.
Lesson 10.5: MAR Split Accounting / § When creating a master agreement, the user has the option of defining the accounting information for the agreement. The accounting definition is optional due to the option of requiring releases against the agreement which will require the user to specify the accounting information. When creating a master agreement request, you will need to navigate to the Summary screen to enter the accounting information details. Once on the Summary screen, you will need to click the Pricing Terms tab to begin. The split accounting functionality is available for master agreements and may be completed for the following:
o Supplier - Click the Edit button displayed for the selected supplier
o Commodity - Click the Edit button displayed for each commodity code selected
o Item - Click the Edit button for each line item specified
§ Users with the role Exemption Authorized can edit the Transaction Fee Exempt and the Transaction Fee Exemption Reason fields.
Lesson 10.6: Approving a MAR / § A Master Agreement Request only requires the Master Agreement Manager to approve it. You should access the Pricing Terms tab to verify the request is complete and accurate.
Lesson 10.7: Creating a Requisition using a Master Agreement / § Users may use the Master Agreements tab in Step 2: Add Items of creating a requisition to purchase against an existing contract. Selecting a specific MA will limit you purchasing options to only those commodity codes, items, or supplier associated with the Master Agreement.
§ A user may search for a specific MA using the Master Agreements tab and then use the Non-Catalog tab to add item(s) to their requisition. If the requisitioner is entering a price for the item, they must enter the price after the discount from the MA.
Lesson 10.8: Searching for MARs and MAs / § Once a Master Agreement Request is found through a System Search, users have the ability to review the agreement’s Pricing Terms, Approval Flow, and audit trail history.
§ Once a Master Agreement is found through a System Search, users have the ability to review the agreement’s Pricing Terms, Approval Flow, purchase orders created against the agreement, and audit trail history
Lesson 10.9: Maintaining MAs and MARs / § To close a Master Agreement prior to the agreement’s expiration date or before reaching the Maximum Commitment Limit amount defined in the agreement, a System Search should be performed to find the MA. Once the MA is found, a Close MA button exists to close the Master Agreement early. The Master Agreement can be reopened, if necessary.
§ Amending a Master Agreement – to amend a MA, you must change the Master Agreement Request associated with it. You never actually amend the MA. Instead, you amend the MAR and submit the changes. Once the changes are approved, you will have a new MA with the same MA ID as the one you are trying to amend with a version number added to it.
§ Note: The following field cannot be edited when amending a MA:
o Supplier
o Agreement Type (Supplier, Commodity, Item)
o Release Required? (Yes or No)
§ Users with the role ‘Exemption eForm’ can initiate and submit a contract exemption eform to exempt a master agreement from the transaction fee or indicate a master agreement from an exempt supplier is fee eligible. The contract exemption eform will require approval from the agency designated role (e.g. Purchasing Office) before effective.
Lesson 10.10: Standard Reporting on Master Agreements / § Many Master Agreement Standard Reports exist in MyFloridaMarketPlace. This lesson will show users how to generate one the MA reports.
§ Explain the different report format options: HTML or CSV. The HTML option opens a new browser winder and displays the report. The CSV option opens the report as an Excel document. Users must have Excel on their computers in order to run a report using the CSV option.
§ Saving Reports – Users have the ability to save reports that they run frequently without having to re-enter the filters. Once they save the report, which is the last step in generating a Standard Report, they can easily access the saved report and run it with all of their filters saved.
Lesson 10.11 Creating an Invoice eForm / § An Invoice eForm must be created if you receive a paper invoice from a supplier. All suppliers have the option when they register to sign up with the Ariba Supplier Network, which allows them to submit invoices electronically to the State. Not all suppliers will do this so an Invoice eForm should be created for paper invoices received.
§ **Very Important** The purpose of entering an Invoice eForm is to make an electronic copy of the paper invoice. You should make the Invoice eForm look exactly like what is listed on the paper invoice (line items, quantities, unit prices, etc.).
§ Choosing a Supplier – When you select a supplier on the Invoice Header page (Step 1), this will limit the Purchase Orders or Master Agreements that you have the option to choose from in the second step of the Invoice eForm process.
Note: When searching for a PO to match the invoice against, the system will display all purchase orders in the entire system for the selected supplier.
§ Approval Flow for Invoice eForms – There are no approvals required for creating an Invoice eForm.
§ All system users have the ability to enter an Invoice eForm.
§ Once an Invoice eForm is submitted, it cannot be edited.
§ Once you submit an Invoice eForm, the 2-way or 3-way matching process is started.
§ If you are entering an invoice for good, the 3-way matching process will begin between the PO, Invoice, and Receipt.
§ If you are entering an invoice for a service, the 2-way matching process will begin between the PO and Invoice.
§ If you are entering an invoice directly linked to a Master Agreement instead of a PO, the 2-way matching process will begin between the Master Agreement and Invoice.
Lesson 10.12 Reconcile an Invoice for Services / § Invoice reconciliation requests which include a service line item will require either the requester or the master agreement contact person to verify the service was performed as invoiced.
§ The following users verification is required for services:
Ø Purchase Order: The requester of the requisition is required to verify services (user indicated in the “On Behalf Of” field on the requisition)
Ø Release Order: The requester of the requisition created against a contract is required to verify services (user indicated in the “On Behalf Of” field on the requisition)
Ø Contract: The contract specialist is required to verify services (user listed in the “Contact” field on the Master Agreement)
§ The invoice reconciliation request will list the requester or the MA contact as the first approver for the request.
Sample Master Agreement Notification Messages
Notification of Open Master Agreement: Once the Master Agreement is “Open”, a notification is sent to the originator of the MAR and to users who have permission to edit the agreement, informing then that the agreement is available for releases to be created against it. For example:
MA81: 'MA for Office Supplies' has been opened.
To view this request in the Ariba system, use the following URL: