Enter Contract
A new contract can be entered by using the ‘new’ button in the dashboard tile of contracts:
Or by using the menu Initiate, Contract:
When a user creates a new contract, the cost center field is copied from the user maintenance. Only contract types with NO cost center or with the exact same cost center can be selected in the drop down menu for contract types. Based on the contract type, several other fields can be prefilled such as supplier and contract manager.
The contract manager is by default copied from the contract type and when empty filled with the current user, but can be overruled by manual selection. Within the section of contract dates several checks are executed to make sure that all relevant dates and periods are prefilled in order to be able to determine prolongation date, signal date and end date of the contract.
Fields Contract Header
Start date: the start date of the contract. Based on this date, multiple other dates are prefilled by default.
Renewal period in months: Duration of the contract in months. By default this is prefilled with 12 (months).
Next renewal date: Start date + the months from renewal period in months. This represents the end date of the contract term.
Renewal notice period: Term in months which is maintained for cancelling the contract. By default this is prefilled with 3 (months). Usually this is mentioned in the contract documentation.
Ultimate cancellation date: Renewal date – the renewal notice period.
Signal notice period: Term in months which is used to start the Contract Renewal process (in order to prolong or terminate a contract). By default this is prefilled with 1 (month). This is the time that you have before the ultimate cancellation date to decide if the contract will be prolonged or not.
Signal date: The date on which the Contract Renewal process is started.
End date: Actual end date of the contract when the contract is terminated or is definite. Depending on a setting in the contract type, this field can be required.
In contract lines, fields can be prefilled based on transaction defaults for the selected supplier.
Fields Contract Lines
Description: Enter the description of the contract line.
Ledger: Enter the ledger for this contract line. (Can be prefilled from a transaction default.)
Cost center: Enter the cost center for this contract line. (Can be prefilled from header or from transaction default.)
VAT: Enter the VAT code for this contract line.
Price: Enter the price of the periodic invoice. This is the amount of the invoice which has to be paid weekly, monthly or yearly e.g.
Quantity is the quantity of units e.g. the quantity of monthly rent.
Field Def. qty inv/ord is the quantity of units per invoice. If the rent is paid per quarter, the def. qty inv/ord is 3 (once per 3 months an invoice is received).
Amount contract: price * quantity
(prefilling the section “Contract Review” and “Review Lines” is not required. As this is part of the feature for contract reviews, this will be discussed in that part of the manual.)
A contract can have one or more lines. If you need to split the costs over multiple entities (like cost centers or ledgers) you can enter more lines here.
After filling all required information, the contract can be approved and sent to the next activity.