Sales Agreement
The sales agreement is the sale of one unit to one buyer. It fixes the price and discount, lists the additional charges, and holds the payment plan: one line per amount the buyer owes, with its due date. Everything collected, invoiced, transferred or refunded later is measured against these lines.
What it is for
The agreement does not post anything to the accounts. It is the schedule of what the buyer owes. Money is then cleared against its lines by a Billing Proposal and collected in Receivables, or invoiced by Sales Agreement Periodic Invoices.
A unit can be on one live agreement only. An agreement stops counting as live when it is cancelled (by a Unit to Unit Transfer), refunded or bought back (by a Unit Refund). Once an agreement is cancelled, refunded or bought back, every button on it is disabled.
The one rule people get wrong: the payment lines must add up exactly to the unit payment amount plus the additional charges that are in the payment plan. Save refuses otherwise.
Creating an agreement
Fill the top part first, then Create.
- Pick Agreement Type: Sales, or Buy Back Sales for a unit returned under a buy back scheme. The Unit No lookup follows the type.
- Pick Property and Unit No. If the unit is the target of an earlier unit transfer, the transferred buyer is filled in as Customer and locked.
- Pick the Customer. Its name becomes the agreement's Name.
- Pick the Billing Condition: Outright, Installment or Stage.
- Create. Billing Condition, Property, Unit No and Currency are locked from here on. The Unit Cost and Discount % are read from the pricing profile of the agreement date, or else from the unit's own price, and the additional charges come with them.
Every field in plain words
General
| Field | What it means | What to put |
|---|---|---|
| Sales Agreement | The agreement number | Required |
| Name | The agreement's name | Copied from the customer's name; required |
| Agreement Date | The date of the sale | Required. Decides which pricing period applies |
| Agreement Status | A free status text | Nothing reads it |
| Agreement Type | Sales or Buy Back Sales | Required |
| Refund, Buy Back, Cancel | Set by the system when the unit is refunded, bought back or transferred away | Read only in practice |
| Block Date, Block | Stored | Nothing reads them |
| Currency | The agreement's currency | Defaults to the company currency; required |
| Notes | Free text |
Property, account and plan
| Field | What it means | What to put |
|---|---|---|
| Project | The project of the unit | |
| Property, Unit No | The unit sold | Required |
| Customer | The buyer | Required. The first owner line is this customer |
| Tax Zone | The buyer's tax zone | Copied onto each new payment and additional line |
| Billing Condition | How the price is paid | Outright, Installment or Stage. Required |
Additional Information and Responsible Information
| Field | What it means | What to put |
|---|---|---|
| Deal No. | A reference number | Used as criteria on the buy back status report |
| K.E Consumer No, SSGC Consumer No | Utility consumer numbers of the unit (electricity and gas, in Pakistan) | For reference |
| Allocation, Possession | Whether these letters were received | Nothing reads them |
| Responsibility Central, Responsible | Who is responsible | |
| Sales Channel, Dealer, Sub Dealer | How the sale was made | From Sales Channel and Dealer |
| Term Condition, Header, Footer | The agreement's terms | Default from Real Estate Setting |
Unit Cost tab
| Field | What it means | What to put |
|---|---|---|
| Unit Cost | The price of the unit | Filled on Create; can be changed. Required |
| Discount %, Discount Amount | The discount on the unit | Either one; the other is calculated. More than 100 percent is refused |
| Special Discount Amount | An extra discount | |
| Adjustment Amount | Money brought from an earlier unit by a transfer | The sum of the Payment Adjustment tab. Always held as a negative figure |
| Unit Payment Amount | What the buyer pays for the unit | Unit Cost less discounts, plus the adjustment |
| Payment Date | The date the plan starts from, and the due date of an outright payment | Required for Outright |
| The remaining fields | Totals of the additional charges and of the whole agreement | Calculated |
Additional Payment tab
One line per extra charge: Payment Category, Required In Payment Plan, Quantity, Price, Gross Amount, Discount % and Discount Amount, Special Discount Amount, Adjustment Amount, Net Amount, Amount Including Tax, Tax Group, Due Date, Tax Zone. A charge with Required In Payment Plan is folded into the instalment total; one without is billed on its own Due Date. If a property allows a maximum discount for the category and the line's discount is higher, the agreement is marked Discount Exceeded (a badge near the toolbar) but is still saved.
Installment Condition tab
The payment lines: Payment Category, Schedule, Stage, Due Date, Payment %, Payment Amount, Settled Amount, Remaining Amount, Tax Group, Tax Zone, Line Text. Settled Amount is what billing proposals have cleared so far.
- Outright. No lines to type. On Save the system makes one line of the outright payment category for the whole Unit Payment Amount, due on the Payment Date.
- Stage. Type the lines. Each has a Stage and a Payment %; the amount is that percentage of the Unit Payment Amount. Stages may not add up to more than 100 percent.
- Installment. The lines are generated from the payment plan and cannot be typed. Open the plan from the grid's schedule button (or pick a Payment Plan) and fill one line per part of the plan:
| Plan column | What to put |
|---|---|
| Payment Basis | Stage for a one-off amount, Installment for a repeating one |
| Payment Category | The category of these lines |
| Period Unit | For instalments: monthly, quarterly, half-yearly or yearly |
| Amount | The amount of each instalment, or of the one-off line |
| Period From, Period To | The months of the plan the instalments cover, counted from the Payment Date: 1 to 36 for three years |
| Period Interval | Every how many periods. 1 for every period |
| No. of Installments | Calculated: the months covered, divided by the months in the period unit, divided by the interval, rounded up |
| Total | Amount times the number of instalments |
| Date | The first due date: the Payment Date plus Period From less one month |
Closing the plan with save writes the payment lines: each instalment falls on the line's Date plus one interval more for each instalment. The plan total must equal the Unit Payment Amount plus the charges in the payment plan.
Payment Adjustment tab
Used when the buyer moves here from another unit. One line per transfer: Transaction (a saved Unit to Unit Transfer into this unit), Origin, Gross Amount, Balance Amount. The sum becomes the Adjustment Amount.
Ownership and Nominee's tabs
- Ownership. Owner Type, Customer, Name, ID, Ownership %, Next Of Kin, Active. The buyer is added as the first owner at 100 percent; that line cannot be deleted. Active owners must add up to 100 percent.
- Nominee's. Name, father's name, relationship, email, percentage allocated, identification number and expiry, phone numbers and addresses of the people the buyer nominates.
How to configure it
- Name the outright categories and the default terms on Real Estate Setting.
- Tick Taxzone and Discount there to show the tax zone and discount columns.
- Prices come from the Pricing Profile first, then from the unit.
Scenarios
- A buyer pays a 20 percent down payment and the rest in 36 monthly instalments. Billing Condition Installment. In the plan: one Stage line for the down payment, and one Installment line, monthly, Period From 1 to 36, Amount the monthly figure. The total must equal the Unit Payment Amount.
- A cash buyer pays in one go. Billing Condition Outright, Payment Date the day the money is due.
- Payments follow construction. Billing Condition Stage; one line per stage with its percentage.
- Two spouses buy jointly. Add the second owner on Ownership and set 50 and 50.
- A booking is taken on a placeholder unit. Sell an Open Unit. When the real unit is known, use the assign-unit button, which shows only on agreements of an open unit, to move the agreement and its billing to the real unit.
What it is connected to
- Pricing Profile and Real Estate Unit give the price.
- Billing Proposal clears its lines.
- Sales Agreement Periodic Invoices invoices its due lines.
- Ownership Transfer changes its owners.
- Unit to Unit Transfer cancels it and carries the paid money to another unit.
- Unit Refund marks it refunded or bought back.
If something looks wrong
- "Sales Agreement already created against this Unit - ...". The unit is on another live agreement.
- "Outright Payment Category is not selected in Real Estate Setting" (or the Buy Back version) on Create, or "Outright Payment Category is not defined in Real Estate Setting" on Save. Set it on the setting.
- "Total Amount ... is not matching schdule Lines", "Unit Payment Amount is not matching with Installment Lines ..." or "Unit Amount is not matching Installment Plan". The lines do not add up to the Unit Payment Amount plus the plan charges. Fix the amounts.
- "Total Percentage of stages cannot be greater than 100". Lower the stage percentages.
- "Please define atleast 1 line in Installment line". An agreement with no adjustment needs at least one payment line.
- "Total Ownership % should be 100%". Active owners do not add up to 100.
- "Payment Adjustment is not matching". The adjustment lines and the Adjustment Amount disagree. Re-enter the adjustment lines.
- "Please Select Tranfer in Adjustment". A unit transfer into this unit is waiting; add it on Payment Adjustment. "Wrong Transfer Selected in Adjustment ...": the transfer belongs to another customer.
- "Sales Agreement Header - Agreement Date cannot be greater than Payment Date" or "Installment - LineID: ... Due Date cannot be smaller then Agreement Date". A date is before the agreement date.
- "LineID: ... - Payment Basis must be Stage or Installment", "... Payment Category cannot be empty", "... Period Unit is mandatory in Installment", "... Amount cannot be smaller then or equal to zero", "... Period From / Period To / Period Interval cannot be smaller then or equal to zero", "... Period to cannot smaller from Period from", "Schedule Plan - Line ID: ... is duplicated with Line ID: ...". A plan line is incomplete or repeated.
- "Cannot change Agreement Date Because Billing is Processed", "Basic Data - Schedule : ... - Billing Propsal is already created" and the "with ... Amount" versions, "You cannot delete ... of payment category because it's billing proposal is already created", "You Cannot Change Payment Date because There are some lines which are settled", "Installment Line - Line ID: ... - already paid, Date Cannot Change". Money has already been cleared against the line; it can no longer be removed, reduced below what is cleared, or moved.
- "Percentage can not be more than 100". The discount percentage is above 100.
- "Pricing Validation Failed!" with a choice to override. The plan breaks a pricing validation of the property's payment plan. Overriding marks the agreement Pricing Plan Override.
- "Unit is Already Assigned, Please re-open the Sale Agreement" when assigning a unit. Someone moved it already; reopen the agreement.