Contract (tpctm1600m000)

Use this session to create and maintain data for a contract.

LN allows multiple users to approve cost entries using the ION based workflow-process status. For more information, refer to Workflow status process.

Note:

A contract can be linked to multiple projects. However, a project can be linked to only one contract.
The contract comprises of data for business partners, pricing and funding, shipment, delivery terms, and so on.
A contract can have multiple contract line items.
Contract deliverables can be physical items as well as services such as training and installation.
LN also allows the user to print a US specific invoice, Standard Form 1443 (SF1443) contractors's request for Progress Payment Requests.
You can print the SF 1034 and SF 1035 reports (as per the US Government requirements) for contracts. These reports include the total amount invoiced (SF1034) and the breakdown of the invoiced costs (SF1035), respectively. LN prints the reports, based on the specified Invoicing Method. For more information, refer to the Invoicing Methods (tcmcs0155s000).
The fields in the Classification group box are also used as attributes when defining authorizations for Contract Management in the Authorization and Security module. By default, these fields are copied to a contract when the Copy Contract option on the References menu is used.
You can use the Trade Compliance Information option to add related data to the contract, contract line, and contract deliverable. If specified for the contract line, the information can be copied (synchronized) to all the linked contract deliverables that are subject to trade compliance.

Field Information

Agreement

Sales

Contract: contract
Sold-to Business Partner: sold-to business partner
Address: address
Contact: contact
Sales Office: The code of the sales office.

Note:
This value is defaulted from the Sold-to Business Partner (tccom4110s000) session. If not specified, Infor LN defaults this value from the User Profile (tppdm0101s000) session. However, you can modify this value.

If the sales office specified in the Sold-to Business Partner (tccom4110s000) session is different from the sales office specified in the User Profile (tppdm0101s000) session, a notification message is displayed.
Program: program
Program Manager: The employee who is the program manager for the contract.
Search Argument: search key

Execution

Contract Execution

The contract type indicates whether your company executes the project as main contractor or as a subcontractor.

Allowed values

Main Contracting: The contract is executed as a main contract.
Subcontracting: The contract is executed as a subcontract.

Contract Manager

The employee who is the contract manager.

Workflow Status

The status that is applicable if the business object requires authorization approval using ION Workflow.

When you perform a change that requires authorization, a checked-out version is automatically created for the business object. The changes you submit are only effective after approval/check-in. You can also undo your changes, or recall your submitted changes.

Checked-out and checked-in objects are displayed in the Checked-out Objects (ttocm9599m000) session.
From the appropriate menu of this session, select Workflow and execute the required action for the business object.

Allowed values

Draft: The object is checked out. It can be changed and saved multiple times until the user submits the changes.
Pending: Any changes made to the object are submitted. The object is pending for approval. The data of the object cannot be modified.
Recall Requested: The object was already submitted, but is recalled by the user. Approval will not take place anymore. If the recall is accepted, the object status becomes Draft (Revision). If the Recall is rejected, the object status becomes Pending.
Draft (Revision): The object was recalled after it was submitted and the recall is accepted. The object can be changed and saved multiple times until the user submits the changes.
Rejected: The submitted changes to the object are rejected. The user can make changes to the object and submit these changes again, or discard all changes.
Approval Received: The submitted changes to the object are approved. The object will automatically be checked in. If the check-in fails, the status remains Approval Received. An administrator must decide what to do with the object.
Approved: The submitted changes to the object are approved and the object is checked in.
Not Applicable: The object is checked in. Instead of an Object status, an Approval status is applicable.

Note: For more information on setting up and using ION Workflow for business objects in LN, refer to the Infor LN Integration Guide for Infor ION Workflows and Monitors.

Project

project

Financials

Status

The status of the contract.

Allowed values

Free
On Hold
Active
Closed
Canceled

Note: If the contract header is Canceled, all lines are also set to Canceled.

Contract Type

The type of the contract.

Allowed values

Fixed Price: The contract that is carried out for a fixed amount.
Cost Reimbursement: The contract for which you invoice the sold-to business partner for the incurred costs periodically.
Time & Materials: The contract that is invoiced for the material and the labor at an agreed sales rate.

Hold Reason

The reason for putting the contract on hold.

Workflow Status

The status that is applicable if the business object requires authorization approval using ION Workflow.

Checked-out and checked-in objects are displayed in the Checked-out Objects (ttocm9599m000) session.
From the appropriate menu of this session, select Workflow and execute the required action for the business object.

Allowed values

Draft: The object is checked out. It can be changed and saved multiple times until the user submits the changes.
Pending: Any changes made to the object are submitted. The object is pending for approval. The data of the object cannot be modified.
Recall Requested: The object was already submitted, but is recalled by the user. Approval will not take place anymore. If the recall is accepted, the object status becomes Draft (Revision). If the Recall is rejected, the object status becomes Pending.
Draft (Revision): The object was recalled after it was submitted and the recall is accepted. The object can be changed and saved multiple times until the user submits the changes.
Rejected: The submitted changes to the object are rejected. The user can make changes to the object and submit these changes again, or discard all changes.
Approval Received: The submitted changes to the object are approved. The object will automatically be checked in. If the check-in fails, the status remains Approval Received. An administrator must decide what to do with the object.
Approved: The submitted changes to the object are approved and the object is checked in.
Not Applicable: The object is checked in. Instead of an Object status, an Approval status is applicable.

Note: For more information on setting up and using ION Workflow for business objects in LN, refer to the Infor LN Integration Guide for Infor ION Workflows and Monitors.

Phase

contract phase

Currency

The currency of the contract amount.

Exchange Rate Type

exchange-rate type

Contract Amount

The amount specified for the contract.

Note: You can specify a negative value in this field.

Total Amount Contract Lines

The total amount specified for the contract. Infor LN calculates this value based on the sum of the contract line amounts for calculating the revenue recognition.

Note: This is a display field.

Transaction Price

The transaction price of the contract line that is used as the base to calculate the interim result.

Note: Infor LN allows both positive and negative value in this field.

Home currency

The transaction price in the home currency.

Bid Number

The bid number. The value defaults from the Bid (tpest3600m000) session. This is a display field.

Enforce Invoicing Period

If this check box is selected, LN determines the invoicing period for the contract. The costs registered for the contract within the effective period (the period between the Effective Date and the Expiry Date) are only billable.

Effective Date

The date from which the invoice period for the contract line is effective.

Note: This field is mandatory if the Enforce Invoicing Period check box is selected.

Expiry Date

The date to which the invoice period for the contract line is effective.

Note: This field is mandatory if the Enforce Invoicing Period check box is selected.

Invoicing

Invoice-to Business Partner

invoice-to business partner

Address

address

Contact

contact

Invoice Type

The invoice type determines the invoicing method for the contract.

Allowed values

Cost-Plus: The amount is based on the financial amounts entered at cost object level plus a profit. This type is only available if the contract type is Cost Reimbursement or Time & Materials.
Unit Rate: The amount is based on the progress and element or activity sales rate per unit. Unit-rate invoicing applicable to all contract types. Invoices are booked against the contract amount and is displayed in the Transferred Unit Rate Invoiced Lines (tppin0550m000) session.
Not Applicable: Invoice is not applicable.
Installment: The invoice amount is a subdivision of the value. This type is only available if the contract type is Fixed Price.
Progress Invoice: The invoice amount is based on progress of element or activity.
Delivery Based: Invoicing is based on the sales amounts of the contract deliverables that are linked to the contract shipments.

Invoicing Method

invoicing method

Invoice Discount

The percentage calculated as a discount on the invoice amount of the contract.

Invoice Delivery Method

invoice delivery method

Sales Type

sales type

Fee Revenue Threshold

The percentage that indicates if the fees can be included while generating the interim results. Infor LN defaults this value from the Project Parameters (tppdm0100s000) session.

Project Text on Invoice

If this check box is selected, LN prints the project related text on the invoices.

Note: If this check box is cleared, Infor LN prints the contract line text on the invoice.

Billing Cycle

billing cycle

Last Transferred to Invoicing

The date when the contract is last invoiced.

Next Invoice Date

The date when the next invoice is generated.

Rate Determiner

The date used to determine the exchange rate.

Allowed values

Document Date

LN uses the rate that is valid on the date and time on which the documents are created. The Document Date rate determiner applies to all types of transactions. You can manually change the rate.

The rate is updated by Invoicing when the invoice is posted.

Manually Entered

You can manually enter the rate. By default, LN uses the rate that is valid on the date and time on which the documents are created. The Manually Entered rate determiner applies to all types of transactions.

Delivery Date

If the goods are not yet delivered, LN uses the rate that is valid on the order date. However, if this order date is in the past, LN uses the rate that is valid on the current date.

If the goods are delivered, LN uses the rate that is valid on the actual delivery date.

The Delivery Date rate determiner only applies to sales orders, service orders, and sales invoices. You cannot manually change the rate.

Receipt Date

LN uses the rate that is valid on the date and time on which you expect to receive the goods. The Receipt Date rate determiner only applies to purchase orders and purchase invoices. You cannot manually change the rate.

Expected Cash Date

LN uses the rate that is valid on the date and time at which payment of the sales invoice or purchase invoice is expected.

Expected cash date = expected delivery/receipt date + payment period

The payment period is specified in the Payment Terms (tcmcs0113s000) session. The Expected Cash Date rate determiner applies to all types of transactions. You cannot manually change the rate.

The rate is updated by Invoicing when the invoice is posted.

Fixed

You can use this rate determiner only for a dependent currency system or a single currency system. The Fixed rate determiner applies to all types of transactions.

If you manually enter the rates between the transaction currency and the reference currencies, the rate is fixed. If you do not manually enter the rates, the rate is not fixed and LN uses the rate that is valid on the date and time on which the documents are created.

Fixed Hard

You can use this rate determiner only for an independent currency system. The Fixed Hard rate determiner applies to all types of transactions.

If you manually enter the rate between the transaction currency and the reporting currencies, the rates are fixed. The local currency rate is based on the document date of the actual document.

If you do not manually enter the rate between the transaction currency and the reporting currencies, the rates are not fixed and LN uses the rates that are valid on the date and time on which the documents are created.

Fixed Local

You can use this rate determiner only for an independent currency system. The Fixed Local rate determiner applies to all types of transactions.

If you manually enter the rate between the transaction currency and the local currency, the rate is fixed. The other rates are based on the document date of the actual document.

If you do not manually enter the local currency rate, the rate is not fixed and LN uses the rate that is valid on the date and time on which the documents are created.

Fixed Local and Hard

You can use this rate determiner only for an independent currency system. The Fixed Local and Hard rate determiner applies to all types of transactions.

If you manually enter the rate between the transaction currency and the home currencies, the rates are fixed. The local currency rate is based on the document date of the actual document.

If you do not manually enter the rates between the transaction currency and the home currencies, the rates are not fixed and LN uses the rates that are valid on the date and time on which the documents are created.

Advances / Installments

Advance Payments

The method used to determine whether advance payment request is applied on the contract line or not applied.

Allowed values

No
By Contract Line

Advance Payment Type

The type of the advance payment applicable for the contract line.

The advance payment types are selected based on the legal requirements of a country or the business. For the advance payment types ( Request and Invoice), open entries are generated.

An advance payment represents a request to the business partner to pay in advance a certain amount or percentage.

An advance invoice represents a normal invoice that must comply with all legal requirements and is included in the sales listing, VAT declaration and Revenue recognition.

An advance invoice is a legal document and therefore an official number is generated. The same is also included in the sales listing.

Note: Tax is applicable only for an advance invoice.

Allowed values

Request: A request to the business partner to pay a certain amount or percentage, of the contract amount, before or after the project is initiated. This amount can be used to purchase, for example, raw materials.
Invoice: An invoice issued to the business partner as advance payment before the goods can be delivered.
Not Applicable: The advance payment is not applicable for the contract.

Use Advance Liquidation Percentage

The option based on which the liquidation percentage for the contract is calculated to settle the invoices against the advances.

Allowed values

Liquidation Percentage: The full invoice amount is used to settle the advance for the contract line.
Full Liquidation: The specified percentage of the invoice amount that is used to settle the advances for the contract line.

Liquidation % Advances

The liquidation percentage calculated to settle the invoices against the advances for the contract.

Allowed values

Full Liquidation: The full invoice amount is used to settle the advance for the contract line. When this option is selected, the value in the Liquidation Percentage field is set to 0. However, the liquidation percentage works as 100 percent.
Liquidation Percentage: The specified percentage of the invoice amount that is used to settle the advances for the contract line. By default, the value is set to 100. However, you can specify any value between the minimum value of 0 to maximum value of 100.

Note:

This field is enabled only if the Advance Payments field is set to By Contract Line.
Only the liquidation percentage * invoice amount is used to settle an advance payment.

Example: For an advance payment for 2000 EUR , a percentage of 75% is defined on the contract line. If a delivery based invoice of 1000 EUR is sent to the customer, an amount of 750 EUR can be used to settle the advance and the customer is invoiced for 250 EUR. If no percentage is set, the maximum amount possible is settled.

Installment Type

The installment type for the project.

Allowed values

Points: The installments are divided into points.
Not Applicable: Installment is not applied.
Percentage: The installments are divided as percentage amounts.
Fixed Amount: The installments are divided into fixed amounts.

Installment Schedule

The installment schedule for the contract

Note: You can define the installment schedule for the contract only if the installment type field is set to Percentage or Fixed Amount.

Number of Points

The total number of points that you can distribute to the installments of the contract.

Example


Contract amount by customer			EUR 600,000
Number of points			300
Installment 1	100 points	EUR 200,000
Installment 2	75 points	EUR 150,000
Installment 3	75 points	EUR 150,000
Installment 4	50 points	EUR 100,000
-	-	EUR 600,000

Labor Part of Contract Amount

The percentage of labor costs in the total contract amount.

Note: This field is relevant only if the contract line execution is set to Subcontracting.

Labor B-Account

This field is only relevant in the Netherlands.

Note: You can view this field only if the Dutch WKA check box is selected in the Project Parameters (tppdm0100s000) session.

Holdback

Indicates if holdback is applicable for the contract.

Allowed values

All Invoices: The holdback is applied on all invoices.
Based on Progress: The holdback is applied based on the progress of the project linked to the contract.
No Holdback: Holdback is not applied for the contract.

Note: This field is set to No Holdback if a negative value is specified in the Contract Line Amount field.

Holdback Percentage

The holdback amount expressed as a percentage. You can define the holdback percentage only if the Holdback field is set to All Invoices or Based on Progress.

Progress Threshold

The progress threshold percentage for the contract. You can define the threshold percentage only if the Holdback field is set to Based on Progress. Holdback is applicable only if the threshold percentage is reached.

Progress Payment Requests

Progress Payment: If this check box is selected, progress payment request data can be defined for the contract.

Note: Progress Payments can be created only for contracts of the type Fixed Price with the invoice type set to Installment or Delivery Based.
Progress Payment %: The percentage of cost on a contract that is considered for invoicing. The commonly used progress payment percentages range between 75-80%.
Progress Liquidation %: The percentage used for calculating the amount to settle the progress payment invoices.
Invoicing Method: The invoicing method for the contract.
Payment Terms: The payment terms for the progress payment request.
Billable Cost Report: If this check box is selected, Infor LN Invoicing prints the billable cost lines and the related costs as an annex to the invoice considering the aggregation of the Invoicing Method.

Paying

Pay-by Business Partner

pay-by business partner

Address

address

Contact

contact

Phone

The phone number of the pay-by business partner.

Payment Terms

payment terms

Late Payment Surcharge

late payment surcharge

Payment Method

payment method

Bank Account Code

The code that uniquely identifies the bank.

Description

The description or name of the code.

Bank Account

The bank account number.

The bank account is identified by a number of the business partner with the bank indicated by the bank account code and displayed based on the bank account code.

International Bank Account Number

The international bank account number for the contract. This is a display field.

Classification

Line of Business: The line of business linked to the contract.
Description: The description or name of the code.
Acquiring Method: The code that identifies the acquiring method linked to the contract.
Description: The description or name of the code.
Financing Method: The code that identifies the financing method linked to the contract.
Description: The description or name of the code.
Geographical Area: The geographical area associated to the contract.
Description: The description or name of the code.
Category: The code that identifies the category linked to the contract.
Description: The description or name of the code.
Business Sector: The code that identifies the business sector linked to the contract.
Description: The description or name of the code.
Group: The code that identifies the group linked to the contract.
Description: The description or name of the code.

Additional Information

Additional Field

User-defined fields that can be linked to LN tables. Additional information fields do not add any specific value to LN as functional logic is not linked to the contents of these fields.

Funding Distribution

The method used to determine the distribution of the funded amount for the contract.

Allowed values

Sequence: The total funded amount for the contract line is distributed and invoiced in a sequence. A sequence number must be specified.
Percentage: The total funded amount for the contract line is distributed based on a percentage. The total percentage must be 100% and equal to the total funded amount.
Amount: The total funded amount for the contract line is split as specific amounts.
None: The total funded amount is not distributed.