INFOR (US) INC. (FORMERLY LAWSON SOFTWARE) 2 - 2008

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and valid current -year transactions. The accounting offsets have already occurred to make them current -year transactions. Contract Management: 1. Provide a detailed discussion /demonstration of contract management processes for both service and maintenance contracts. Lawson Response: Lawson's purchasing contracts are referred to as "vendor agreements ". A vendor price agreement provides the item / service costs to default on purchase orders and requisitions. The Purchase Order application searches for item costs on specific vendor agreements and defaults the costs in the order that you selected. You can define the cost defaulting parameters at the company level when you set up your purchase order company. Vendor agreements store item costs and order information within procurement groups. There are five different types of vendor agreements: contract, catalog or price quote, blanket, standing, and service. Lawson also allows you to create Agreement Commitments for Projects / Activities and General Ledger commitments at the time a contractual vendor agreement is created. As requisitions and purchase orders are created referencing an agreement, the amount committed from the agreement will be reduced by the commitment amount defined for the requisition or purchase order. At the end of the agreement period, you can manually close the agreement if there is an outstanding balance. Agreement commitments can be created for contract, blanket order, standing, service, or catalog agreements. A contract agreement contains item and item cost information arranged between you and the vendor. You can set up the cost defaulting structure at the company level to reference contract prices when creating either a purchase order or a requisition. Agreement Types Defined: Catalog Agreement A list of items and item costs supplied by a vendor. The City can set up the cost defaulting structure at the company level to reference catalog prices when creating either a purchase order or a requisition. Blanket Agreement: Differs from other agreements in that it creates releases from an existing purchase order. The items on a blanket order are flexible items, meaning you pick and choose which items you want to order. You can set up the cost defaulting structure to reference blanket prices when creating requisitions. Standing Agreement: Also referred to as a standing order, this is used to order items and supplies that you require frequently. The items and item quantities on standing orders are permanently set to order exactly what items are listed in the quantities that they are listed. You can determine the frequency and number of releases to create. Each time you issue a standing order, the Purchase Order application automatically assigns a unique release number to the order. A standing agreement creates releases from an existing purchase order. Lawson Software - Confidential 16