Adding lines with allowances

Use this procedure to create a line with a zero amount. The valuation is then calculated by drawing down the allowance.

Note: To use a line with allowances and draw downs, create the line with a zero value and set the Cost Option to Vendor Determined. The line must have an allowance defined for it before the contract is activated.
  1. Select Manage Contracts.
  2. Open a contract record.
  3. On the Change Orders And Allowances tab, open a change order record.
  4. On the Change Order Detail tab, click Create New Allowance And Line.
  5. Specify this information:
    For Allowance
    Specify a name for the allowance.
    Allowance Description
    Provide a description for the allowance.
    Allowance Amount
    Specify the allowance amount.
    Description
    Provide a description for the item.
    Line Description
    Provide a description for the line.
    Service Code
    Select a service code for the contract line:
    • Not Service Item

      This is the default code for Itemmast and Special item types.

    • Amount

      This value is used for Service item types.

    • Quantity

      This is the default code for Service item type.

    UOM
    Select a unit of measure for the item.
    Change Reason
    Specify a reason for the change order.
    Document
    Attach a document that contains additional item details.
  6. Click Submit.