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August 29, 2025

8/29/2025 02:13:00 PM


 When we work with Oracle Cloud ERP, one key area that often comes up in discussions with customers is contracts. Many people ask, 

“What kinds of contracts are supported in Oracle Cloud?”

Here’s a simple breakdown 👇


1. 🛒 Procurement Contracts

👉 Used for supplier side.

  • Contract Purchase Agreements (CPA)

  • Blanket Purchase Agreements (BPA)

  • Supplier agreements linked to Purchasing/Sourcing


2. 📑 Sales Contracts

👉 Customer-facing.

  • Sell-side agreements

  • Subscription contracts

  • Order Management agreements


3. 🛠️ Service Contracts

👉 Mostly tied with Service Cloud / Service Logistics.

  • Warranty contracts

  • Subscription / recurring contracts

  • Usage-based contracts (pay-per-use)

  • Renewable fixed-term service agreements


4. 📊 Project Contracts

👉 Used in Project Billing.

  • Customer-funded contracts

  • Intercompany contracts

  • Government/Grant contracts

  • Fixed Price, T&M, Cost-Reimbursable


5. 📂 Enterprise Contracts (Repository)

👉 Central contract management repository.

  • NDAs

  • HR contracts

  • Vendor/Partner agreements

  • Any custom-defined contract type


In summary:
Oracle Cloud ERP supports multiple types of contracts across Procurement, Sales, Service, Projects, and also offers a central Enterprise Contracts repository. Each type is designed to streamline business processes and improve visibility into obligations and entitlements.


✨ This post is handy for:

  • New ERP users exploring contract capabilities

  • Functional consultants preparing for demos

  • Business users wanting clarity on contract handling

Contract Type

Purpose

Where Used

Procurement Contracts

Manage supplier-side agreements such as purchase agreements.

Procurement, Purchasing, Sourcing

Sales Contracts

Manage customer-side agreements such as sales orders and subscriptions.

Sales Cloud, Order Management

Service Contracts

Define service entitlements, warranties, subscriptions, and renewable agreements.

Fusion Service, Service Logistics

Project Contracts

Link contracts with project billing for customer, intercompany, or government-funded projects.

Project Billing, Grants Management

Enterprise Contracts (Repository)

Centralized repository for all types of contracts. Can store NDAs, HR contracts, vendor/partner agreements.

Enterprise Contracts (across ERP modules)

 
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