Contract Management

Use Contract Management to perform contract-related tasks and to retrieve contract-related data. You can view and maintain contract information such as the contract type, the invoice type, the contract amount, and the budgeting method.

  • Contract fees and penalties

    The contract fees and penalties are used to incentivize the contractor. The terms and conditions can be agreed upon with the contractor as part of the contract. You can define fees and penalties for all the contract types. The invoicing method is defaulted from the contract line data. However, you can change the invoicing method.

    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).

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

    You can close the project or contract even if the fee amount and the invoice amount are not same because the invoiced amount can be lower than the fee amount.

  • Cost Peg Audit History

    You can view the history data of the project cost peg that displays the modifications done to the peg data of the orders. You can also print the project cost peg audit history data.

  • Progress Payment Requests

    Progress payments requests are generated for the costs incurred when working on a contract with the business partner. Progress payment invoices are sent to the customer based on an agreed billing cycle and settled using the installment or delivery based invoices. The progress payment request process is used to create a US specific Standard Form1443 invoice.

    You can define the progress payment data using the values of the Progress Payment % and Progress Liquidation % fields for the contract. You can also specify the Invoicing Method and Payment Terms to calculate the discount amount, period, and date for the invoices.

  • Copy Labor Rates

    The Labor Rates check box is used to copy the labor rates specified for a contract or contract line, when you use the Copy contract or Copy contract line option. If a project is linked to contract the labor rates cannot be copied. However, labor rates for a contract line can be copied, even if linked to a project.

  • Additional Information Fields

    Additional fields are available in the contract header as specified in the contract line. These fields are also used as attributes when defining authorizations for Contract Management. These fields are copied by default when you use the Copy Contract option.

  • Contract Clauses Flow Down

    The Additional information fields specified in the Contract lines (tpctm1110m000) session, which are linked to the Project Peg of the Planned order, are defaulted to these sessions:

    • Planned PRP Purchase Order (Material) (tppss6110m000)
    • Planned PRP Purchase Order (Equipment) (tppss6111m000)
    • Planned PRP Purchase Order (Subcontracting) (tppss6112m000)
    • Planned PRP Warehouse Order (tppss6115m000)

  • The Extended Additional Information is provided on the Additional Information tab, in the Contract Lines (tpctm1110m000) session (based on the contract clauses flow down). This option starts the session, Extended Additional Information (tcstl2110m000) to display the customer defined fields (CDFs).

    The Annex Additional Information report prints the contents of the Additional Information fields for the specified object, such as Purchase Order or Contract Deliverable. You can print the report Annex Additional Information using the Annex Additional Information check box, in the Print Contract Acknowledgments (tpctm1400m000) session.

    The Additional Information Differences report prints the differences in the contents of Additional Information of two or more objects. Using this report you can check if any Additional Information fields are not included when the Additional Information from different objects to one object is merged.

  • Contract Deliverable Monitor

    The contract deliverable monitor is extended with a sort by option based on the Planned Delivery Date / Item. You can also view the contract deliverable lines in a graph based on the available filter options.

  • Global trade Compliance

    The global trade compliance functionality is implemented for contract deliverables. If global trade compliance is implemented and the item is identified as Subject to Trade Compliance, during the activation of a contract deliverable, the export compliance check is performed.

  • Mark up percentage

    The Markup option in the Sales Price for Cost Plus Invoicing domain, on the Selling tab, in the Contract Lines (tpctm1110m000) session is used to determine if the sales price of the cost object must include the markup percentage.

  • In-context Graph

    You can view multiple graphs in the Contract 360 (tpctm1300m000) session, based on the option you specify in the Contract Margin group box.

  • Base for Performance Obligation

    The basis for the interim result calculation is determined based on the value specified in the Base for Performance Obligation list, in the Contract Lines (tpctm1110m000) session. The list consists of these options:

    • Contract Amount
    • Transaction Price

When a project is linked to multiple Contract Lines (CLINs), the Transaction Price is used as the base to calculate interim result.

  • Delete or Archive Contracts

    Contract history is part of the archiving procedures and the data can be deleted and/or archived

  • Delete Contract

    Using the Delete Contracts (tpctm1200m400) session, you can delete a range of contracts and contract lines and the related objects such as Contract deliverables, Advance payment, and Installment.

  • Price Stage

    The Price Stage functionality is used to identify if the price is fully negotiated.

  • Aftersales Service

    At the time of selling or delivering a product a maintenance contract is also sold as part of the value added service. In Project, for items that require service, After Sales Service is linked to the contract deliverable.

    After Sales Service is enabled for the contract deliverable only if the Extended Service Integration check box is selected in the Contract Parameters (tpctm0100m000) session, for the contract line to which the contract deliverable is linked.

    The Unprocessed After Sales Service option is used indicate that After Sales Service Lines exist with the Status set to Delivered and are linked to the contract deliverable.

    The Process After Sales Service Automatically option is used to process an After Sales Service Line linked to the Contract Deliverable when the shipment of the deliverable is confirmed.

  • Letter of Credit

    The Letter of credit (L/C) functionality is enabled for the contract deliverables, only if the Export and Domestic Outbound check boxes are selected in the Financial Trade Management Parameters (tcgtc9199m000) session.

  • The Document Compliance status is now considered for global trade compliance and letter of credit or both for the results of the internal and external compliance checks for the documents.

  • Remove Contract Information when status is ‘Free’

    Information for contracts and contract lines with status Free can easily be deleted using the new Delete option in the Contract sessions. Related objects such as installments and deliverables can also be deleted.

  • Archive Contracts

    Contract history can be included in the archiving procedures.

  • Revert Contract Line Status

    The status of the contract or contract line can be reverted from Closed to Active.

  • Price Stages

    The price stages have been added for contract deliverables. Therefore, a price on a line can now be identified as not fully negotiated.

  • Contract Deliverable - Letter of Credit

    As part of Global Trade Compliance, the presence and status of letters of credit for project contract deliverables can be established. The Document Compliance status is now considered for global trade compliance and/or the letter of credit for the results of the internal and external compliance checks for the documents. The check results cannot be created or modified manually. However, authorized users can override the failure results manually.

  • Option to Allow for Advance Payments on an Active Contract

    You can now change the Advance Payment option from No to By Contract Line, on contracts that are active. The option setting is used as a default for new contract lines.

  • Contract Deliverable - Discount

    The contract deliverable as part of Delivery based contracts now includes a discount percentage and amount. Percentage and amount both result in a discount amount but are mutually exclusive.

    A Selling tab has been added with Price and Discount details. The Discount Origin is also displayed. The Sales Line Discount setup is used retrieve the discount related data for the selling tab.

    It is suited to handle only one discount level and therefore best not to use Multiple Discount Levels as part of the Pricing Parameters.

  • Contract Line – Enforce Invoicing Period

    An option to allow enforcement of the invoice period for fixed price contracts has been added. If the period is enforced, it is not possible to invoice these items outside the contract line effective and expiry date:

    • Installments
    • Deliverables (during transfer to invoices/confirm shipment)
    • Fees
    • Advances
    • Holdback

    Non-hardware deliverables can no longer be Activated, Released to WH or Delivered. The effective dates must be specified when Enforce Invoicing Period is set to Yes.

  • After Sales Service Integration

    In Project, for items that require service, the After Sales Service functionality can now be used for the contract deliverable. The integration is only relevant for hardware contract deliverables as these can be maintained using LN Service.

    This functionality is enabled for the contract deliverable of the contract line only if the Extended Service Integration check box is selected in the Contract Parameters (tpctm0100m000) session.

  • Contract Type

    The contract type Time & Material and Cost Reimbursement can be now also used for Service Calls, Service Orders and Maintenance Sales Orders.

  • Advance Payment Type

    Infor LN now allows to set the advance payment type to Full Liquidation or to Liquidation Percentage and also specify the percentage for the contract and the contract line.

  • Revenue Document Lines

    A new option is added to the contract line to view the linked Revenue Document Lines. This option is applicable only if a revenue document line exist for the contract line.

  • Negative Contract Amount

    Infor LN allows to create a contract line in project with a negative contract line amount. The contract line can also activated only if the contract type is Fixed Price and the invoice type is Installment or Delivery Based.

  • Bank Relation for Contract Line

    The bank relation where the invoiced amount is to be paid, can now be defined for a contract line. The bank relation can depend on the currency, customer, location and so on.

  • Bank Guarantee for Contract Line

    The GTC bank guarantee functionality is now added to the contract line as part of the Global Trade Compliance (GTC) module in Infor LN.