Contract data set-up

Agreement tab

1. Create a contract ID.
2. Select or define your Sold-to Business Partner using the Sold-to Business Partners (tccom4510m000) session.
3. Select or define the Address of the sold-to business partner using the Addresses (tccom4130s000) session.
4. Select or define the contact data using the Contacts by Business Partner Role (tccom4545m000) session.
5. Select or define the program using the Programs (tpctm0110m000) session. A program is a group of related projects managed in a coordinated way to obtain more benefits and control.
6. Select or define the program manager using the Employees - General (tccom0101m000)) session.
7. Select the sales office using the Departments (tcmcs0565m000) session or define the sales office using the Enterprise Units (tcemm0130m000) session.
8. Select or define the contract manager using the Employees - General (tccom0101m000) session.
9. Select or define the project for the contract using the Projects (tppdm6100m000) session. Multiple projects can be linked to a contract or contract line. Note: Defining or linking a project is not mandatory during the initial phase of the contract. You can create a contract with a blank project.
10. Set the status of the contract using the Status option from the appropriate menu.
11. Set the phase of the contract to indicate the phase at which the contract is, such as bidding, sent to customer and so on.
12. Select the contract type. This field can have the following values:
    • Fixed Price - invoicing is Installment or delivery based.
    • Cost Reimbursement – only for Cost-Plus invoicing.
    • Time and Materials – Unit Rate and Cost-Plus invoicing.
13. Enter the date on which the contract is awarded.
14. Enter the effective date and expiry date for the contract.

Selling tab

• LN defaults the business partner related data from the Agreement tab. However, you can modify the data.
• Tracking displays the creation date of the contract and name of the person who creates the contract.

References tab

• Use the References tab to enter reference text to be printed on the invoices. For example, the name of the contact person or the customer reference number.

Invoicing tab

1. Select the invoice type.
2. Select or define the invoicing method using the Invoicing Methods (tcmcs0555m000) session.
3. Create or define the billing cycles for the contract using the Billing Cycles (tpctm0130m000) session.
4. Create or set the billing cycle using the Recurrence Details (tcccp0143s000).
5. Select the method to determine the exchange rate. Note: Based on the setting of the Express in Base Currency field in the Currency Rates (tcmcs0108m000) session, LN divides or multiplies the amount by the rate factor before the currency exchange-rate is applied.
6. Specify if Advance Payment Requests are applicable for the contract. Advanced Payment Requests can be linked to a contract or a contract line.
7. Enter the liquidation percentage for Advances Note: You can define the liquidation percentage only for contracts of the type Fixed Price.
8. Select the installment type (this field is enabled only for invoicing methods of the type Installments and Progress Invoices).
9. Create or define the installment schedule using the Installment Schedules (tcmcs2140m000) session. You can define the schedule only if the Installment Type field is set to Percentage.
10. Enter the number of points to be distributed to the installments for the contract. You can define the points only if the Installment Type field is set to Points.
11. Enter the liquidation percentage for installments. Note: You can define the percentage only for contracts of the type Fixed Price.
12. Specify how the holdback is applied for the contract . Following are the possible values:
    • All Invoices
    • Based on Progress
    • No Holdback
13. Enter the holdback percentage.
14. LN defaults the business partner related data from the Agreement tab:
    • Invoice to business partner.
    • Address
    • Contract currency
    • Exchange rate type

Paying tab

1. Select or define the payment terms using the Payment Terms (tcmcs0513m000) session.
2. Select or define the payment method using the Payment/Receipt Methods (tfcmg0540m000) session.
3. Select or define the bank account code using the Bank Accounts by Pay-by Business Partner (tccom4515m000) session. The account linked to the bank account code is displayed in the Bank Account field.
4. LN defaults the pay-by business partner, address and contact data based on the business partner related data from the Agreement tab.