Project Contract
A Project Contract says what the customer will be billed. It names the customer and, line by line, each project under the contract with its billing rule and its priced billing lines. The Billing Proposal bills from these lines.
What it is for
The contract is the billing plan. Its billing lines are the contract value on the Project Profitability and Contract Billing Status lists, and what each billing proposal draws its open quantity from.
The rule people get wrong: a project can be on one contract only, and only for the customer that funds it. A project already on a contract, or funded by someone else, is not offered.
Every field in plain words
Header
| Field | What it means | What to put |
|---|---|---|
| Project Contract | The number | Required |
| Contract Date | The date signed | Required |
| Name | What the contract is | Required |
| Customer | Who is billed | Required |
| Customer Group | The customer's group | Filled in |
| Customer Tax Zone | The customer's tax zone | Proposed from the customer |
| Currency, Exchange Date, Exchange Rate | The contract currency | Defaults to the company's currency; the rate comes from the exchange rates |
| Payment Term, Payment Method | How the customer pays | Recorded on the contract |
Lines
| Column | What it means |
|---|---|
| Project | A project under the contract. Required. Only projects funded by this customer and on no other contract |
| Project Billing | The billing rule: Unit of Delivery, Milestone or Progress. Required |
| Billing Condition | The link to this project's billing lines. Opens once a rule is chosen |
Billing lines
| Column | What it means |
|---|---|
| Sequence | The order the lines are billed in |
| Billing Line | What is billed: a milestone, a delivery, a stage |
| Progress % | Shown for the Progress rule only. Recorded; nothing works it out |
| Category | A category assigned to the project |
| Item No, Name | An item, if the line is one |
| Quantity, Unit | How much |
| Price | Price per unit |
| Gross Amount | Quantity x Price |
| Discount %, Discount Amount | Type either; the other follows |
| Net Price, Net Amount | Net Amount = Gross Amount - Discount Amount; Net Price = Net Amount / Quantity |
How to configure it
Nothing to configure on the screen. Make sure each project's Project Funding is Customer, its Project Funding No. is the contract's customer, and its categories are assigned.
Scenarios
- A building contract billed by milestone. One line for the project, rule Milestone, billing lines Foundation 30 percent, Structure 40 percent, Handover 30 percent, each quantity 1 at its amount.
- A maintenance contract billed per visit. Rule Unit of Delivery, one billing line Visit, quantity 24, price per visit. Each billing proposal bills the visits made.
- Two projects for one customer under one contract. Two lines, one per project, each with its own billing lines.
What it is connected to
- Project - funded by the contract's customer.
- Billing Proposal - bills the open quantity of each billing line.
- Project lists and reports - Contract Billing Status, Project Profitability, the contract print.
If something looks wrong
- The project is not in the list. It is funded by another customer or by the legal entity, or it is already on a contract.
- The Billing Condition link does not open. Pick the Project Billing rule on the line first.
- The save is refused on the number. The contract number is used.