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BCS Itera

Extensions for Microsoft Dynamics 365 Business Central

Extensions | What's new | User Guide
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Contract Management

Contract management functionality in BC enables the following:

Table of Contents

Settings

To use the functionality, Contract Setup must be opened and following fields filled:

ContManContSetup

Field Explanation
Contract numbers For defining contract number series. Value can be chosen from No. Series List.
Contract Usage Accounts Allows to define a GL accounts filter for contract usage calculation. For an example income and expense accounts on which you expect transaction related to contracts. It is advisable to exclude VAT, payables and receivables accounts. You can define specific accounts and/or an accounts range (for an example range 30000..90000).
Transfer Contract No to Job Sales Header Enables transferring Contract No. from Job Card to new Job Invoice Header.
Default Contract Type Specifies default Contract Type for new contracts.
Def. Contract Category Sales Specifies default Contract Category for sales contracts.
Def. ContractCategory Purchase Specifies default Contract Category for purchase contracts.

Billing related setup

Field Explanation
Show Billing Information Enables Billing Information tab on sales contracts.
Create Contract Invoice Lines Date Formula Specifies default date formula for Next Billing Date in Create Contract Invoice Lines (CM).
Create Sales Invoices Date Formula Specifies default date formula for Posting Date in Create Sales Invoices (CM).

Contract Categories

Contract categories allow you to define different type of categories in order to divide your contracts into different groups.

ContManContCategories

Field Explanation
Contract Category Code Specifies a category code for the contract.
Contract Category Description Decription to define which contracts are categorized to this category
Sales, Purchase, Other Sales should be marked if category should be availabele on sales contracts (Type Sales), Purchase should be marked if category should be availabele on purchase contracts (Type Purchase), Other should be marked if category should be availabele other contracts (Type Other).
No. of Sales Contracts and No. of Purchase contracts Shows number of Sales/Purchase contracts in that category.

Billing related category setup

Field Explanation
Def. InvoicingFrequency Option Specifies default Invoicing Frequency Option for contracts in this category.
Invoicing Frequency” Specifies default Invoicing Frequency for contracts in this category.
Default Type Specifies default Type for contract lines for contracts in this category.
Default No. Specifies default No. for contract lines for contracts in this category.

Use

Create contract

With contract management it is possible to manage purchase, sales and other contracts. For creating a new contract you must open Contracts and use button +New in order to create a new entry.

An empty Contract card opens where you can fill the following fields:

ContManContractCard

Field Explanation
Contract No.* Is filled automatically according to defined Number Series from Contract Setup.
Name and Description** For entering contract and short description.
Partner No.* Allows to choose contract partner from Contact list. If contact is related to a Customer or Vendor then related information will be displayed on Relations tab on fields Customer No. and Name and Vendor No. and Name.
Contract Type* Defines if it is a purchase, sales or other type of contract. Option also defines if that contract can be chosen to Purchase document (Purchase) or to Sales document (Sales).
Main Contract No. Allows to group contracts under a common value (Main Contract), that can be chosen from Contract List filtered by field Main Contract. Default value is contract’s own number.
Main Contract Allows that contract to be chosen as main contract.
External Contract No. Allows to enter partners contract number.
Start and End Dates** Allows to define validity dates of the contract. Field is informative.
Amount** Allows to enter contract amount, this amount is base for calculating the reminder of the contract.
Amount Incl. VAT Allows to enter contract amount including VAT.
Payment Terms Allows to define agreed payment terms. Value will be transferred to Sales/Purchase header after chosing contract in document header.
Salesperson/Purchaser Code Specifies a code for the salesperson/purchaser who is responsible for the contract. Value will be transferred to Sales/Purchase header after chosing contract in document header.
Blocked Allows to mark contract as Blocked. Contract will no longer be displayed in drop down list on purchase and sales documents, job and job planning lines.

*Fields that must be filled **Fields that are advisable to fill

Fields displayed on fast tab Relations (Customer No. and Name, Vendor No. and Name) are filled automatically after partner selection. Fields will only be filled if the selected Contact is related to Customer and/or Vendor. If the relation will be created later, then contract must be updated manually by pressing button Update Customer/Vendor link on contract card. This updates Contact’s relations with Customer and Vendor on contract.


Using contracts on purchase and sales documents

On sales and purchase document headers you can select appropriate contract from Contract List in the field Contract No.. If contract has been selected in the header then it will be automatically transferred to lines. It is possible to change contract number on lines.

Important


Selection of contracts that can be chosen to document is limited with the following:

If there is no contract in the selection that meets the requirement, then it might be due to Customer/Vendor relations that have not been updated on contract card. In order to update the relations button _Update Customer/Vendor link_ must be pressed on related contract card.This updates Contact’s relations with Customer and Vendor on contract.


Contract number will be transferred to posted documents, General Ledger Entries, customer and vendor ledgers and Job Ledger Entries after posting.

Important


It must be taken into account that document header contract number will be transferred to customer and vendor ledgers. If different contract have been used on lines then those will be transferred to related income and expenses accounts.


Contract completion tracking

You can track the completion and reminder of the contract from the Contract List or Contract Card by checking following fields:

ContManCompletionTracking

Additionally it is possible to open list of related General Ledger Entries by using Completion entries button in contract list or on contract card.


Using contracts in Jobs

It is possible to use contract in Job module on Job Card and in Job Planning Lines.

Job Card - it is possible to enter related sales contract to a job by selecting appropriate contract from Contract List in the field Contract No.

Selection of contracts that can be chosen to job is limited with the following:

Contract will be transferred to Sales Invoice when creating an invoice for a job by using action Create Job Sales Invoice.

Job Planning Lines - it is possible to enter Partner No. and related Contract No. to job planning lines. That allows track, for an example, if you already have a contract with subcontractor or no for a specific task. Later it will help to track completion..

Selection of contracts that can be chosen to job planning line is limited with the following:


Billing

You can enter billing information on contract card and then fill in contract lines. After that billing lines can be created, in order to check possible deviations and to have a longer view, and finally sales documents can be created.

Important


Billing Information tab becomes visible only if it is allowed in Contract Setup and on contracts of type Sales! Contract Lines tab becomes visible after billing information date related fields are filled in and Add Contract Lines has been clicked!


On Billing Information tab you can fill following fields:

ContManBillingInfo

Field Explanation
Bill-to Customer No. Specifies Bill-To Customer. If not filled in Customer default value will be used on invoice creation.
Ship-to Code Specifies Ship-To Code. If not filled in Customer default value will be used on invoice creation.
Invoicing Frequency Option Specifies default Invoicing Frequency Option for lines.
Invoicing Frequency Specifies default Invoicing Frequency for lines. By default field is not visible.
Billing Start Date Specifies default Billing Start Date for lines.
End Date First Period Specifies default End Date of the first billing period for lines. For an example this field allows to play with the length of the first period in order to adjust future periods to fit into full months.
Billing End Date Specifies default Billing End Date for lines.
Add Contract Lines Enables Contract Lines and inserts first contract line with default values from Contract Category and Billing Information tab.

On Contract Lines tab you can fill following fields:

ContManContractLines

Field Explanation
Type Allows to specify type. Default value will be taken from Contract Category.
No. Allows to specify No. to be billed. First line default value will be taken from Contract Category
Description Allows to specify line description.
Quantity Allows to specify quantity to be billed.
Unit of Measure Code Allows to specify unit of measure to be billed. Field is not visible by default.
Unit Price Excl. VAT Allows to specify line unit price to be billed.
Line Amount Excl. VAT Displays calculated line amount. Field is not editable.
Valid Allows to specify if line is valid or not. Default value is Valid.
Add Period Text Allows to specify if new text line with period information will be added after this line when creating invoice information.
Invoicing Frequency Option Specifies billing period/frequency for current line. Default value will be taken from Billing Information tab.
Billing Start Date Allows to specify Billing Start Date for current line.
End Date First Period Allows to specify End Date First Period for current line. Default value will be taken from Billing Information tab.
Next Billing Date Displays Nexte Billing Date (next period start date) for current line after Create Contract Invoice Lines has been run
Billing End Date Allows to specify Billing End Date for current line.. Default value will be taken from Billing Information tab.

Contract line based sales orders/invoices creation consists of two steps.

Create Contract Invoice Lines

First step is to create Contract Invoice Lines.

Open Contracts List or Contract Card and use action Create Contract Invoice Lines (CM). Following window will be opened:

ContManCreateContInvLinesENG

Fill in Next Billing Date, this date will be an end date for a range that will be applied to Valid contract lines. It will be applied to Next Invoicing Date or to Billing Start Date (if the other is empty) and Contract Invoice Lines will be created for each Contract Line that meets the filtering criteria.

Press OK.

Use action Contract Invoice Lines from Contract Card to open list. Check if lines were created and if they look OK for creating invoices/orders. List is not editable.

ContManContInvLinesENG

Some of the fields need no explanation. Other will be explained below.

Field Explanation
Posting Date By default Period Start Date.
Period Start Date and Period End Date Are reflecting the actual billing period
Status Shows status of current line. New - First status for alla created lines. Also line gets this status back when it is removed from order/invoice. or removed . Order - Sales Order has been created from that line. Invoice - Sales Invoice has been created from that line. Posted - involved sales order/invoice has been posted. Canceled - line has been canceled by using action Cancel, only New lines can be canceled.
Document No. Shows document number of the involved document (order, invoice, posted invoice).

Create Sales Invoices

Second step is to create Sales Orders or Sales Invoices.

Open Contracts List or Contract Card and use action Create Sales Invoices (CM). Following window will be opened:

ContManCreateSalesInvENG

Fill in Posting Date, this date will be an end date for a range that will be applied to Contract Invocie Lines. It will be applied to Posting Date and Sales Invoices/Orders will be created for contract invoice lines that meet the filtering criteria and combined according to Create Invoices By.

Field Explanation
Replace Posting Date Allows to replace invoice/order Posting Date. Otherwise Posting Date will be taken from Contract Invoice Line.
Create Invoices By Allows to select how the lines should be grouped among documents. Contract - one invoice/order for each contract. Only lines from one contract will be included in one invoice/order. Customer - one invoice/order per customer. Lines from different contracts that have the same customer will be included in one invoice/order. Main Contract - one invoice/order per main contract. Lines from different contracts that have the same main contract will be included in one invoice/order.
Create as Invocie or Order Allows to select which type of sales docuemnts should be created: Invoices (default) or Orders.

Press OK.


For more information please contact BCS Itera AS:
https://www.itera.ee