Create fees and penalties for contract

Fees and penalties are defined as part of the contract line data and must be linked to the revenue code. You can define a period of validity for a fee line. You can add multiple fee and penalty lines to a contract line.

You can close the project or the contract even though the fee amount and the invoice amount are not same because the invoiced amount can be lower than the fee amount or even zero (not earned by the contractor because of lack of performance).

Infor LN considers the fees and penalties to calculate revenues. Infor LN only considers the fee type Fixed Fee for revenue recognition.

The fee amount must not exceed the funded amount specified for the contract. Infor LN allows you to approve the fees only if the funds are available for the contract. You cannot settle the advance amount using fee invoices. The funded amount of the contract cannot be increased based on the penalties.

When you transfer a fee or penalty line to Invoicing, the fee data such as Fee Type and Fee Text is also transferred to Invoicing.

You can also manually create the revenue transactions for fees and penalties using the invoice type, Fees and Penalties in the Revenues (tpppc3101s000) session .

When you cancel a billable line related to the fee or penalty in Invoicing, Infor LN clears the Transferred to Invoicing check box for the fee or penalty line in the Fees and Penalties (tppin0180m000) session.

To see the process to create contract fees and penalties, see To create contract fees and penalties.