Contract Setup
Complete guide to creating and configuring Purchase Contracts in NetSuite.
Creating a Purchase Contract
Manual Creation
CREATE PURCHASE CONTRACT
═══════════════════════════════════════════════════════════════════
Navigation: Transactions > Purchases > Enter Purchase Contract
Step 1: Header Information
┌────────────────────────────────────────────────────────────────┐
│ Primary Information │
│ ──────────────────── │
│ Vendor: ABC Supplies Inc. [Required] │
│ Employee: John Smith [Required] │
│ Memo: Annual supplies contract │
│ │
│ Contract Terms │
│ ────────────── │
│ Effectivity Date: 01/01/2026 [Start Date] │
│ Expiration Date: 12/31/2026 [End Date] │
│ │
│ Amount Limits │
│ ───────────── │
│ Minimum Amount: $10,000 [Optional] │
│ Maximum Amount: $100,000 [Optional] │
└────────────────────────────────────────────────────────────────┘
Step 2: Add Items (Items Subtab)
┌────────────────────────────────────────────────────────────────┐
│ Item Description Quantity Rate │
│ ──── ─────────── ──────── ──── │
│ WIDGET-100 Widget Standard 1,000 $25.00 │
│ WIDGET-200 Widget Premium 500 $45.00 │
│ SUPPLY-001 Office Supplies 2,000 $5.00 │
└────────────────────────────────────────────────────────────────┘
Step 3: Save
Header Fields
Primary Information
| Field | Description | Required |
|---|---|---|
| Vendor | Supplier for this contract | Yes |
| Employee | Requestor/manager | Yes |
| Memo | Contract description | No |
| External ID | External reference | No |
Contract Terms
| Field | Description | Required |
|---|---|---|
| Effectivity Date | Contract start date | Yes |
| Expiration Date | Contract end date | Yes |
| Terms | Payment terms (Net 30, etc.) | No |
Amount Limits
| Field | Description | Purpose |
|---|---|---|
| Minimum Amount | Minimum total purchase | Ensures vendor commitment |
| Maximum Amount | Maximum total purchase | Triggers approval if exceeded |
[!IMPORTANT] If a Purchase Order would cause the contract to exceed the Maximum Amount, it may trigger additional approval workflow.
Multi-Currency Contracts
Currency Selection
MULTI-CURRENCY CONTRACT
───────────────────────────────────────────────────────────
When creating contract, currency options:
┌────────────────────────────────────────────────────────┐
│ Vendor: International Supplies Ltd. │
│ │
│ Currency: EUR (Euro) ▼ │
│ ├── EUR (Primary) │
│ ├── USD │
│ └── GBP │
└────────────────────────────────────────────────────────┘
Notes:
• Currency comes from vendor's configured currencies
• Currency is FIXED once contract is created
• All linked POs use the same currency
• Exchange rates apply at PO creation
[!WARNING] The standard Purchase Contract Approval Workflow does not support Multiple Currencies. If your account uses multiple currencies, you may need to customize the approval workflow.
Classification Fields
Accounting Classifications
| Field | Description |
|---|---|
| Department | Department for linked POs |
| Class | Class for linked POs |
| Location | Location for linked POs |
These classifications can be auto-populated to purchase orders created from the contract.
Items Subtab
Adding Items
ADDING CONTRACT ITEMS
───────────────────────────────────────────────────────────
For each item:
Item: [Select from item list]
Description: [Auto-filled, can override]
Quantity: [Optional - contracted quantity]
Rate: [Base contract rate]
Tiered Pricing:
Click "Pricing" to add quantity-based pricing tiers
See Contract Pricing documentation for details
Item Fields
| Field | Description |
|---|---|
| Item | Inventory/non-inventory/service item |
| Description | Item description (editable) |
| Quantity | Expected/contracted quantity |
| Units | Unit of measure |
| Rate | Base per-unit price |
| Amount | Extended amount (Qty × Rate) |
Contract Statuses
Status Transitions
| Status | Description | Can Create PO? |
|---|---|---|
| Pending Approval | Awaiting approval | No |
| Approved | Approved, before start date | No |
| Active | Within effectivity dates | Yes |
| Expired | Past expiration date | No |
| Cancelled | Manually cancelled | No |
Checking Contract Status
CONTRACT STATUS INDICATOR
───────────────────────────────────────────────────────────
Contract: PC-00042
Status: Active ✓
Effectivity: 01/01/2026 - 12/31/2026
Amount Tracking:
Minimum: $10,000
Maximum: $100,000
Purchased: $35,000 (35% of max)
Remaining: $65,000
Workflow Integration
Default Approval Workflow
APPROVAL ROUTING
───────────────────────────────────────────────────────────
Contract Amount vs Employee Limit:
Employee Purchase Limit: $50,000
Contract Max Amount: $100,000
Because $100,000 > $50,000:
→ Requires supervisor approval
Approval Chain:
1. Employee creates contract (Pending Approval)
2. Supervisor reviews and approves
3. Contract status → Approved
4. When effectivity date reached → Active
See Approval Workflow for detailed configuration.
Best Practices
Contract Setup
| Practice | Recommendation |
|---|---|
| Naming convention | Include vendor, year, category |
| Dates | Align with budget/fiscal year |
| Amounts | Set realistic min/max |
| Items | Include all contracted items upfront |
| Terms | Mirror vendor's payment terms |
Common Issues
| Issue | Cause | Resolution |
|---|---|---|
| Can't select vendor | Vendor inactive | Activate vendor |
| Currency grayed out | Already saved | Currency fixed at creation |
| Item not available | Wrong item type | Check item record |
| Status won't change | Missing approval | Complete approval workflow |
Related Topics
- RFQ to Contract - Create from RFQ
- Contract Pricing - Tiered pricing
- Approval Workflow - Approval process