Understanding Vendor Contract

A vendor contract is a legal agreement between a business (the buyer) and a vendor (the seller) that outlines the terms and conditions of their business relationship. These contracts typically detail the products or services being provided, pricing, payment terms, delivery schedules, warranties, liabilities, and any other relevant terms added in the purchase order. Vendor contracts are essential for ensuring both parties understand their rights and obligations, and they help protect the interests of both the buyer and the seller.

Permissions for Creating a New Vendor Contract

To Create, Copy, or edit the Vendor Contract, you must have super admin privileges or the necessary permissions.

To initiate the “Permissions“ 

Navigate to Settings

Click on Users and Roles

Search user or group to whom you want to give the permission.

Click on Action icon against the user or group and select Edit

Go to permissions and allow permission for below

Manage PO List

Show Only Self-Created PO (for Viewing Select Created Vendor Contract)

Create PO

Edit PO

View PO

View PO Stage

Delete PO

Manage PO Contract

Show Only Self Created PO Contract

And click on Save.

Vendor Contract Convert to Contract From Purchase order

Vendor  contract is created after the Purchase order is accepted

When the Vendor or supplier Accepts the pricing and terms of the Vendor Contract accept the Vendor Contract

Navigate to Left Menu > Purchase > Purchase Order

You will land on Purchase Order Listing page

Locate the Vendor Purchase order number in the Purchase  list in Pending Tab

Click on the Accept Tab on the Right

This Purchase Order will now show in the Accepted tab of Purchase order.

Navigate to Left Menu > Purchase > Purchase Order

You will land on the Purchase Order Listing Page.

Click on Accepted Tab

Locate the Vendor Purchase order number in the Purchase. Click on the Convert to contract option from the Action dropdown menu. Alternatively, you can Right Click on the Purchase Order that you want to Convert to Contract and  select.

Enter the Credit days.

PO Contract period start and End dates.

Enter any other fields wherever necessary, and click Save.

Purchase order will be converted into contract and will reflect in contracted tab of Purchase order

View Vendor Contract

Navigate to Left Menu > Purchase > Purchase Order 

You will land on Purchase Order Listing page. 

Click on the Contracted Tab 

Locate the Vendor Contract number in the Purchase Order List and click on the same to view contract

Updating Vendor Contract

Navigate to Left Menu > Purchase > Purchase Order 

You will land in Purchase Order Listing Page.

Click on Contracted Tab

Locate the  Vendor Purchase order number in the Purchase Order and click on the Edit option from the Action dropdown menu. Alternatively, you can Right Click on the Vendor Contract that you want to Edit and  select update Contract  

Make the necessary changes to the Purchase Order details.

Save the updated information.

Deleting Vendor Contract

You cannot delete the Contracted Vendor Contract.