Contracts (tpctm1100m000)

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 like training and installation.

Field Information

Contract

The code that uniquely identifies the contract.

Description

The description or name of the code.

Sold-to Business Partner

The sold-to business partner for the contract.

Sold-to Contact

The contact linked to the sold-to business partner.

Contract Manager

The employee number of the contract manager for the contract.

Note: When you specify a value in this field, LN checks if the specified employee’s data exists in the Employees - People (bpmdm0101m000) session and the employee is Active (based on the First Date of Employment and the Last Date of Employment). Else, a warning message is displayed. You can ignore the message.

Project

The code that identifies the project linked to the contract.

Note: It is mandatory to specify the project before the advance payment requests or installments linked to the contract are approved.

Status

The Contract Status.

Note:

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

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 LN Integration Guide for Infor ION Workflows and Monitors.

Text

If this check box is selected, a text is present.

Phase

The contract phase.

Search Key

The search key.

Hold Reason

The code that identifies the reason for putting the contract on hold.

Contract Type

The Contract Type.

Sold-to Address

The address of the sold-to business partner.

Invoice-to Business Partner

The invoice-to business partner for the contract.

Invoice-to Address

The address of the invoice-to business partner.

Invoice-to Contact

The contact for the invoice-to business partner.

Pay-by Business Partner

The pay-by business partner for the contract.

Pay-by Address

The address of the pay-by business partner.

Pay-by Contact

The contact for the pay-by business partner.

Internal Sales Representative

The code of the internal sales representative, defined in the Employees - General (tccom0101m000) session . The sales representative is used as a reference with the invoice in the Transfer Transactions to Invoicing (tppin4200m000) session.

External Sales Representative

The name of the employee who is the external sales representative for the contract, defined in the Employees - General (tccom0101m000) session.

First Reference

The reference text to be printed on invoices, for example, the name of a contact person or a customer reference number.

Second Reference

The reference text to be printed on invoices, for example, the name of a contact person or a customer reference number.

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 Award Date

The date when the contract is awarded.

Advance Payments

The method used to determine whether advance payment request is applied on the contract or contract line.

Allowed values

No: Advance payments are not allowed.
By Contract Line: Advance payments are calculated on the contract line.

Liquidation % Advances

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

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 request.
The full invoice amount is used to settle the advance if no liquidation % is specified.

Example: For an advance payment request 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 paid 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

Note This field is enabled only if the Installment Type field is set to Points.

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, LN prints the contract line text on the invoice.

Sales Office

The code of the sales office.

Note:

This value is defaulted from the Sold-to Business Partner (tccom4110s000) session. If not specified, 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.

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.

Holdback

The method used to determine how holdback is applied 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.

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 All Invoices or Based on Progress.

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.

Progress Payment Requests

Progress Payment: If this check box is selected, progress payment request data can be defined for the contract.
Progress Payment %: The percentage of cost on a contract that is considered for invoicing.
Progress Liquidation %: The percentage used for calculating the amount to settle the progress payment invoices.
Progress Payment Invoicing Method: The invoicing method for the progress payment request.
Payment Terms Progress Payment: The payment terms for the progress payment request.
Transaction Price: The sum of the contract amount or the transaction price of the contract lines.
Billable Cost Report: If this check box is selected, LN prints the billable cost lines and the related costs.

Note: The billable cost lines are printed in Invoicing as an annex to the invoice based on the aggregation of the Invoicing Method.

Invoice Type

The invoice type you choose to determine 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

The invoicing method for the contract.

Invoice Discount

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

Invoice Delivery Method

The invoice delivery method of the contract.

Sales Type

The sales type for the contract.

Currency

The currency of the contract amount.

Exchange Rate Type

The exchange-rate type for the contract.

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.

Rate

The currency exchange rate to convert the transaction currency to the displayed home currency.

Rate Factor

The rate factor.

Contract Amount

The amount specified for the contract.

Approved for Invoicing

The total amount invoiced till date for the contract.

Payment Terms

The payment terms for the contract.

Total Funded Amount

The maximum amount that is funded for the contract. The value in this field is equal to the sum of the amounts funded for all the contract lines of the contract. This is a display field.

Funding Distribution

The default method used to determine the distribution of the contract fund amount.

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.

Default value

By default, this field is set to None.

Late Payment Surcharge

The late payment surcharge for the contract.

Payment Method

The payment method for the contract.

Bank Account Code

The code that uniquely identifies the bank.

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.

Program

The code that identifies the program.

Program Manager

The employee code of the program manager for the contract.

Acceptance Point

The acceptance point .

Allowed values

Source Acceptance: The goods are accepted or rejected at the contractor location during the shipment of goods.
Destination Acceptance: The goods are accepted or rejected at the customer location during the receipt of goods.
Source and Destination Acceptance: The goods must be accepted at the contractor and customer location.
Not Applicable: Acceptance of goods is not required.

Created by

The code of the user who creates the record.

Creation Date

The date when the record is created.

Invoiced to Date

The amount invoiced till date for the contract expressed in the contract currency.

Note: The invoiced amount is based on the revenue transactions registered in the Revenue Transactions (tpppc3805m000) session and includes the invoiced amounts of any contract type/invoice type and processed through Invoicing. The holdback amount, advance payments and manual revenues are not included in the invoiced amount.

Additional Information

Additional Field

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