How Do I Interface Product Contracts?

Access Product Contract Interface Adjustment (BR70.1).

Type a Run Group to use during the import of the setup data. A run group is used to group sets of import records for processing.

Type or select the Contract you are interfacing setup data for.

Type the Contract Date for the contract. The date defaults from the contract activity's begin date, but can be overridden.

On the Main tab, use the following guidelines to enter field values:

Contract Status: Type or select the status for the product contract. For example, the status might be pre-cutoff, shipped, or post-cutoff. Contract statuses are defined on Contract Status (BR30.1).
Contract Deferred Revenue: Select whether or not there is any deferred revenue associated with this contract. If Y, you can specify a Contract Deferred Rev Amt and a Reason Code for the deferral. This can be overridden for each product on the Detail tab if needed. If any detail lines have deferred revenue, this field must be set to Yes.
Contract Deferred Rev Amt: Type the revenue amount (exclusive of free maintenance) to be deferred for the contract. The amount to defer to each product is calculated as the proportion of the product's net price to the net price of the total contract, multiplied by the value you enter here.
Reason Code: Type or select the code that explains why revenue is deferred for this contract. For example, the contract might have excessive service discounts, or fixed fees. Reason Codes are defined on Reason Codes (BR08.1).
Discount Percent: Type the percentage discount applied to the actual list price of each product in the contract. This discount amount is applied to all products for revenue recognition purposes, but can be overridden at the detail level if needed. The discount percent cannot exceed 100%.
Product List: Type the product list in which all products on the contract are included. Product Lists are defined on Product List Maintenance (BR50.1).
Posting Activity: Type or select the posting activity to which revenue and cost of goods sold amounts are posted for this contract. This activity must be a child activity of the contract activity for this product contract.
Location: Type or select the location to appear on the invoice. Locations are defined on Service Location (BR16.1).

Select the Free Maint tab to enter information about any free maintenance that is included in the product contract. Use the following guidelines to enter field values:

Maintenance Schedule: Type the maintenance schedule and description used to recognize deferred revenue for free customer support maintenance for the contract.
Maintenance Percent: Type the percentage of the contract amount used to calculate the free maintenance amount. The maintenance percent cannot exceed 100%.
List or Net: Select whether the percentage of maintenance is calculated against the override list price (1) or the net price (2).
Free Maint Begin Date: Type the date when free maintenance begins for the contract.

Note: This date range must include the dates on all detail lines.
Free Maint End Date: Type the date when free maintenance ends for the contract.
Default Company: Type or select the GL company for the free maintenance schedule. If this is blank, the default GL company on Activity (AC10.1) is used.
Default Acct Unit: Type or select the GL accounting unit for the free maintenance schedule. If this is blank, the default GL accounting unit on Activity (AC10.1) is used.

Select the Detail tab to enter information for specific products, or to override defaults from the contract header. Use the following guidelines to enter field values:

Product: Type or select the product to add to the contract. Products are defined on Product List Maintenance (BR50.1).
Version: Type or select the version of the product that was sold and shipped to the customer.
Nbr of Users: Type the number of users included in the product sale.
Base Calc: Select Yes to include the base price of the product in the total amount for the contract. Select No to leave the base price amount out of the calculation, such as if you are selling only additional user licenses.
Def Rev (Deferred Revenue): Select Y (Yes) if revenue is deferred for this product, or N (No) if there is no deferred revenue. Select X (Not shipped) if the product line is fully deferred because it has not yet shipped. This value defaults from the Main tab, but can be overridden here.
Deferred Amount: Type the deferred revenue amount for the product. This defaults from the Main tab, but can be overridden here. The amount that defaults from the Main tab is calculated by spreading the total contract's deferred amount among all the product detail lines in the same proportion as the net product price to the net contract price. If a deferred amount is entered for both the contract and a product, the product level amount is processed first.

Note: Detail lines with Def Rev = X (not shipped) will automatically have the deferred amount calculated to equal the net product revenue.
Reason Code: Select the code that explains why revenue is deferred for this product. For example, the contract might have excessive service discounts, or fixed fees. Reason Codes are defined on Reason Codes (BR08.1). This defaults from the Main tab, but can be overridden here.

Define more information about each product on the tabs at the bottom of the Detail tab. On the Amounts tab, use the following guidelines to enter field values:

Actual List

Type the actual list price of the product from the price book. This price includes the base price for the product and the price of any additional users. This default from the product list but can be overridden here.

Override List

Type the list price as entered by the user, which may be an override of the actual list price. This is the basis for the price charged to the customer. If this field is blank, the actual list price is used.

Discount Pct (Percent)

Type the discount percent for the product based on the blended discount percent required for revenue recognition. This defaults from the Main tab, but can be overridden here. This percent is multiplied by the actual list to determine the discount amount.

Inv Net Price

Type the net price of the product after any invoice discounts have been applied. This is the amount that appears on the customer invoice, is taxable, and the amount on which maintenance is based if maintenance is based on net value. If this is blank, the override list price is used.

Delivery Method

Select the delivery method used to deliver the product to the client. This value is used to calculate tax in situation where tax is based on delivery method.

Shipped
Hosted
Electronic
Loaded
Method 1 (user defined)
Method 2 (user defined)
Method 3 (user defined)

On the Product Detail tab, use the following guidelines to enter field values:

Ship Date: Type the date the product was shipped to the customer, if it has been shipped. You must enter either a Ship Date or an Anticipated Ship Date in order to create a maintenance schedule. This date defaults from the Free Maint Begin Date, but can be overridden here.
Anticipated Ship Date: Enter the date on which the product is going to be shipped, if it has not already been shipped. You must enter either a Ship Date or an Anticipated Ship Date in order to create a maintenance schedule.
Maint End Date: Type the ending date for the maintenance schedule for a product. This value defaults from the Free Maint tab entered there.
Maintenance Percent: Type the percent of the contract amount that is used to calculate the free maintenance amount for the product.
List or Net: Select whether the maintenance amount is based on the invoice net price (2) or the override list (1) price of the product.
Suite: Type or select the product group or suite to which this product belongs, if applicable. The suite can be included on a custom invoice, or can be used for sorting.
User Fields: Use these fields to store additional information that differentiates a product, such as server type, database type, and operating system.
Site Location: Select the site where the product is used.

On the Revenue Accounts tab, use the following guidelines to enter field values:

Acct Category

Type the revenue account category for the product.

If no account category is entered, it will default from the product account table, using either the default account category set up for this specific product, if available, or the default account category defined for all products.

Account

Type the GL account and subaccount for revenue for the product.

If no account is entered, it will default from the product account table, using either the default account category set up for this specific product, if available, or the default account category defined for all products. If the account field is completed, leave the GL Code field blank.

GL Code

Type the GL code for revenue for the product.

If no GL code is entered it will default from the product account table using either the default account category set up for this specific product, if available, or the default account category defined for all products. If the GL Code is completed, leave the Account field blank.

Select the Billed Accounts and Unbilled Accounts tabs to select the accrual account categories, GL accounts or GL codes to use for billed and unbilled amounts. These accounts and accounting units, or GL codes, must be entered in order to add the record.

Note: The account categories used for billed and unbilled must be accrual type.

Select the Add form action to add the product contract information.

If there is Cost of Good Sold information related to this product contract, click the Cost of Goods button to define the information on Product Interface Cost of Goods Sold (BR70.2). For more information, see Defining Cost of Goods Sold Information for a Product Contract.

Click the Comments button to access Product Contract Interface Comments (BR71.1) for this contract. Use this form to add comments at the header level.

How Do I Interface Product Contracts?

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