Setting Up Contract Parameters

Specify this information on the Contract Parameters form:

Contract Prefix: Specify a default static prefix to use for all contracts. The system uses this value to generate the next available contract number.
Contract Product Code: Select a product code to use as the default for all new contract lines. This code contains all of the general ledger accounts used for posting the cost of goods sold and revenue amounts on the Service Contract Invoicing form. Invoicing references the product code of each line during processing.

Specify this billing information:

Billing Max Hrs/Day: Specify how many hours that a contract can be billed for one day. This is used for calculated contracts with lines that are billed by date.
Bill for Holidays: Select this check box to apply calculated contract rates on days that are marked in the system as a holiday.
Weekly Billing Times: Use these fields, in conjunction with the Billing Max Hrs/Day field, to define the time basis used to bill time-sensitive calculated contracts. For example, if the Monday open time is 8 a.m. and the close time is 6 p.m., and the Billing Max Hrs/Day is set to 6, then the contract only incurs charges for 6 hours even though a 10 hour period is designated.

Specify this information for rental contracts:

Rental Contract Prefix: Specify a prefix to use for new contracts that are created with a contract type with the Rental check box selected.
Default Rental Warehouse: Select the warehouse to use on all rental contracts by default.
Default Rental Location: Select the location to use on all rental contracts by default.
Rental Service Type: Select the contract service type to use for all rental contracts by default.
Unit Check-Out Status: Select a status to place on a unit as it is checked out.
Unit Check-In Status: Select the status to place on a unit as it is checked in.
Place On Hold After Check-In: Select this check box to put a unit on hold when it is checked in. This indicates the unit is unavailable for rental. You might use this parameter in scenarios where a cleaning or inspection is needed before the unit can be rented again.
Hold Reason: Specify the reason for placing the unit on hold.
Accept Partial Payments: Select this check box to accept a partial payment during the rental check in/check out process. If this check box is cleared, the user is required to submit payment for the entire outstanding balance before completing the check out. If this check box is selected, a check in/check out can be processed without collecting the entire outstanding balance. An invoice and payment are generated for any amount paid and the remainder resides in accounts receivable.

Specify these parameters:

Contract Product Code

Select the default value to use for new contracts. The contract product code contains all of the general ledger accounts that are used to post the cost of goods sold and revenue amounts during the Contract Invoicing activity.

Open Status and Close Status

Select status codes, defined on the Contract Status Codes form, to indicate that contracts are open or closed.

Price Basis

Select the default price to use for new contracts. This basis is used in the calculation of charges when the contract line is invoiced.

Billing Type

Select the default billing type value to use for new contracts:

Fixed: The contract price is based on the manually entered total.
Calculated: The contract price is based on the rates and time periods set up on the header and lines.

Billing Frequency

Select the default value to use on new contracts or contract lines for the time period between billing cycles.

Contract Aging Basis

When setting up tiered pricing based on the life of a Unit, select the date to use in calculating the duration of the contract.

Contract Waiver Account

Select the account number to use for waiver charges on a contract.

Contract Surcharge Account

Select the account number to use for surcharges on a contract.

Use these check boxes to set additional parameters:

Prorate Line Items: Select this check box to prorate the first invoice line amount to the number of days it takes to get the contract line billing date to sync with the renewal date, when invoicing a contract line for the first time. For example, the renewal date is 04/01/16, the invoice date is 06/01/16, and the first line has never been invoiced. The start date is 04/05/01 and the billing frequency is a month. The system compares the invoice date to the start date of the line that the line needs to be invoiced. The system notes that to have the line billing date sync with the proration date, the next invoice amount should be generated from 04/05/16 through 04/31/16. Thus it will have an invoice line for 27 days. The next line on the invoice is for a complete month from 05/01/16 through 05/31/16. For subsequent billings, the monthly frequency will continue to be based on the first of the month.
Use End User Types: Select or clear this check box to indicate whether or not to use end user types for contracts.
Bill Initial Period on Sales Order: Select this check box to apply the invoiced charges for the first contract period to the associated Sales Order through a new line that is added for the initial charge.
Service Type: Select the unique alphanumeric code representing the type of contract being sold to a customer. The codes available are set up and maintained through the Service Types form.
Billing Frequency: Select the time period between billing cycles for a contract or contract line.
Billing Type: Select the method to use in determining the price of the contract.
Contract Aging Basis: Select the date of the unit to use when determining contract aging rates.

Save the record.