Defining Product Contract Parameters

Use this procedure to define and maintain billing contract parameters for product and maintenance billing and revenue. These parameters are used on Product Contract (BR51.1) and Maintenance Schedule (BR52.1)

You must create a customer on Customer (BR11.1) before creating a product contract.

To define product contract parameters

  1. Access Product Contract Parameters (BR10.9).
  2. Use the following guidelines to enter field values:
    Contract

    Type a unique code and description that identifies your product contract or you can select an existing product contract code you want to modify.

    When you interface contract and billing information to Accounts Receivable (AR), the contract field defaults in AR as User Field 1.

    Contract activity

    Type or select the contract activity with which you want to associate the contract. The activity must be defined as a contract type activity and be billable on Activity (AC10.1).

    Invoice currency

    Type or select the currency code to use to bill contract amounts. The invoice includes this currency code.

    This currency does not have to be the same as the base currency of the customer. All transactions created as a result of billing or revenue processing will have this currency as the transaction currency.

    If you leave this field blank, the currency code assigned to the activity defaults.

    Revenue method

    Select the type of revenue contract you are defining: Product (1), Maintenance (2) or Product and Maintenance (3).

    Company

    Type or select the Accounts Receivable company associated with this product contract. The company must first be defined on Company (AR01.1), and then associated with a customer and customer invoice option on Customer (BR11.1).

    Customer

    Type or select the Accounts Receivable customer associated with this contract activity. The customer must first be defined on Customer (AR10.1), and then associated with a company and customer invoice option on Customer (BR11.1).

    Customer Invoice Option

    Type or select the customer invoice option associated with this customer for this contract. Customer invoice options determine how an invoice prints and interfaces with the Accounts Receivable application. Customer invoice options are defined on Customer (BR11.1).

    Payment Code

    Type or select a payment code for the contract. The payment code controls the processing of payments for the contract, and will override the payment code assigned at the AR Customer level. This allows maintenance-related payments to be processed via EFT while non-recurring payments for a contract may be processed individually.

    Payment codes must be defined on Bank Transaction Definition (CB00.4) with Transaction Category = C (Cash Payment Transaction).

    Payment codes apply only to maintenance contracts.

    Customer PO Number

    Type a customer purchase order number to the contract. The purchase order number is included on the invoice for audit purposes.

  3. Select the Add form action to create the contract.
  4. Click the Add Info button to access Additional Contract Information (BR10.4) to specify more information about the contract. The fields on this form create attribute values that can be used in customized reports, the Project Accounting data mart, or printed on Contract Modification Listing (BR212).
  5. On the Main tab, use the following guidelines to enter field values:
    Contract Type

    Type or select a contract type for the contract. Options are:

    • CPFF — Cost Plus Fixed Fee (1)

    • CPAF — Cost Plus Award Fee (2)

    • T & M — Time and Material (3)

    • FFP — Firm Fixed Price (4)

    • Other (5)

    Contract Class

    Type or select a contract class. Options are:

    • Government (G)

    • Commercial (C)

    Order Nbr

    Type an order number for the contract.

    Contractor Tp (Type)

    Select whether the contract is assigned to a prime contractor, a subcontractor, or a second-tier contractor. Options are:

    • Prime Contractor (P)

    • Subcontractor (S)

    • 2nd Tier Contractor (2)

    Prime Cntr Nbr

    If you selected P in the Contractor Tp field, type the prime contractor number.

    Subcntr Number

    If you selected S in the Contractor Tp field, type the subcontractor number.

    SIC

    Type the SIC (Standard Industrial Classification) Code.

    Reference Nbr

    Type a reference number to be attached to the contract.

    Contract Nbr

    Type the number associated with the contract. If this number is entered on or defaulted to a purchase order line, it is an indication of the vendor contract that line is tied to.

    Note: In terms of the functionality of the system, there is no correlation between this Contract Number and the Contract identified on Product Contract Parameters (BR10.9).
    PO Number

    The purchase order number field is an optional field for reference use. It is assumed to contain the original purchase order number associated with the contract.

    Description

    Type a long description for the contract.

  6. On the Totals tab, use the following guidelines to enter field values:
    Cost

    Type the total Contract Cost, the Awarded Cost and the Funded Cost.

    Fee

    Type the total Contract Fee, Awarded Fee and the Funded Fee.

    Value

    Displays the total value (costs plus fee) for contract, awarded and funded.

    Fee Percent

    Displays the fee percent (fee amount/value) for contract, awarded and funded.

    Hours

    Type the total hours for contract, awarded and funded.

    Dates

    Type the total period of performance beginning and ending dates for total contract, total awarded and total funded.

  7. Select the Change form action to save the changes to the contract.

Followup Tasks

  • Click the Contacts button to access Customer Contacts (BR14.1) to define contact information for this product contract.

  • Click the Product Contract button to access Product Contract (BR51.1) to create a product contract based on these parameters.

  • Click the Maint Schedule button to access Maintenance Schedule (BR52.1) to create a maintenance schedule based on these contract parameters.