1. OVERVIEW  

A contract is a formal agreement that exists between a company and its clients, vendors, or other business associates. It is utilized for managing the design and implementation of contracts as well as their deliverables, conditions, amount, and deadlines. Contracts also assist in lowering financial risks, enhancing compliance, and improving operational efficiency. 

This document describes the process of the Contract Management in the VA System. This process enables the user to create the Contract Category and Contract Master data and further will be used for sales and purchase transactions.

Below is the process flow of Contract without workflow in Vienna Advantage:

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2.  CONTRACT CATEGORY  

A contract category refers to a broad classification or group of contracts that share similar characteristics or purposes. Common categories include sales contracts, purchase contracts and employment contracts. In Vienna Advantage, the Contract Category screen allows users to define the categories of the contracts.    

To open the Contract Category screen, navigate to following paths:

Menu > Partner Relationship Management > Contract Category

Or Search Contract Category in search utility available in Menu.

After clicking on the Contract category in the menu, the Contract Category screen opens then user needs to click on new record button to add the record.

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Enter or select the following information at the Contract category screen:

1. ‘Organization’ is auto-populated based on user login. Contract Category records may be created in (*) organization, in case users want to use the same record across all Organizations. The User may also generate Organization-specific records, by selecting a specific organization.  

2. ‘Active’ check-box represents that this Contract Category is active in the system and can be used in the Contract Master Screen.

3. Enter ’Contract Category code’ or VA System auto populate after user saves the record.

4. User needs to enter ‘Name’ of the Contract Category which can be used in the contract master screen to group the similar contracts.

5. User may enter ’Description’ for the Contract Category. 

3.  CONTRACT MASTER  

In Vienna Advantage, the Contract Master screen refers to a central interface where users can create, manage and view information related to contracts. This screen includes details such as contract terms, involved parties (customer/vendor), contract dates, payment details and any other relevant information. Users also use this screen to renew, or terminate contracts.

To open the Contract Master screen, navigate to following path:

Menu > Partner Relationship Management > Contract Master

Or Search Contract Master in search utility available in Menu.

After clicking on the Contract category in the menu, the Contract Master screen opens then user needs to click on new record button to add the record.

3.1 CONTRACT DETAILS

Contract Details tab is used to enter the details of the Contract. 

Enter or select the following information on the Contract Details tab at the Contract Master screen:

1. ‘Organization’ is auto-populated based on user login. Contract Master Records may be created in (*) organization, in case users want to use the same record across all Organizations. The User may also generate Organization-specific records, by selecting a specific organization.

2. ‘Contract Number’ auto updates after user saves the record.

3. User needs to select ’Contract Category’.

4. User needs to select ‘Contract Type’ as Accounts Receivable or Accounts Payable. If Contract is with Customer, then user need to select Accounts Receivable and if Contract is with Vendor, then user needs to select Accounts Payable and further the selection of type will be used for the sales and purchase transactions.

5. User may select the ’Contract Reference’, if details of some another contract is to be recorded. Also, if any contract is renewed then Contract Reference field displays the document number of the old contract and the ‘Contract Referral’ filed which is in read only mode is displayed as “Renew”.

6. ‘Contract Amount’ field is in the read only mode and auto-updates based on the total sum of Amount field of all the lines created on the Contract line tab.

7. ‘Contract Utilized Amount’ field is in the read only mode and represents the amount which has been utilized from the total amount of the Contract. 

8. User needs to select the ’Business partner’ by entering the name and selecting from the list of values or by searching from the search info on the field. 

9. ‘Bill to location’ and ‘Invoice Contact’ fields gets auto updated when the business partner is selected but user can change the values if there are multiple records.

10.  User may enter ’Tax Jurisdiction’ of which region tax regulations and rates are applicable for the contract.

11.  User may select the ‘Award recommendation’ for creating the contract. Also, ‘Copy from Award Recommendation’ button is used to copy the award lines in the contract line tab.

12.  User may enter the ‘Contract Summary’ for the contract.

13.  User needs to select the ‘Price List’ from the list of values by clicking on the field. And the ‘Currency’ field is in the read only mode and gets auto updated according to the price list.

14.  User needs to select the ‘Payment Term’ and ‘Payment method’ from the list of values by clicking on the respective fields which are further used for the payment.

15.  User may enter ’Inco Term’ if applicable.

16.  ‘Contract date’ field is in the read only mode and is auto updated with the systems date.

17.  User need to select the ‘Contract Start Date’ and it can be selected as any date.

18.  User needs to select the ‘Contract End Date’ and it should be greater than the Contract Start Date and Contract Date.

19.  ‘Duration (Years)’ and ’Duration (Months)’ fields are in the read only mode and are automatically calculated based on the Contract Start Date and Contract End Date, and it represents the duration of the contract in years and months.  

20.  User may select ’Project’ if contract is created for any project.  

21.  Renewal section includes ‘Renewal Type’, ‘Renewal Date’ and ‘Renewal Term’ fields. Renewal Term field is displayed when the contract is expired.

22.  User can renew the contract as manually or automatically by selecting from the list of values.

23.  If user select Automatic as renewal type, the ‘No. of Cycles’ and’ Notice Days’ fields get displayed. No. of cycles represents the frequency to renew the contract and Notice days represents that how many days before the expiration of contract the VA system will send the notification to renew the contract.

24.  If user selects Manual as renewal Type, then user needs to run ‘Renew Contract’ process from the screen itself, once the contract is expired.

25.  ‘Renewal Date’ gets auto updated with the next date of the Contract End Date, but user can also change the date and it should be greater than the Contract End Date.

26.  User may add Renewal Terms for renewing the contract.

27.  User may mark ’Terminate’ checkbox as true, if user wants to terminate the contract and prevent it from being used for future transactions. This checkbox is displayed after publishing the contract. Also, once the contract is terminated it will not be reactivated.

28.  When user mark Terminate checkbox as true then the ‘Termination Date’ and ‘Termination Reason’ fields are displayed.

29.  User needs to select the Terminate Date which must be greater than the Contract Start Date and enter the Termination Reason for the contract.

30.  ‘Publish’ button is used to complete the contract and after the completion the contract can be used for the further transactions. User will only be able to publish the contract once details are added on the Contract Line and Contract Owner tab.

31.  The ‘Status’ field which is in read only mode, it indicates the status of the contract i.e., Drafted, Approved, Expired and Terminated.

32.  The ‘Re-Activate’ button is used to reactivate the contract once published.

33.  Check on the ’Active’ check-box and this check-box represents that this Contract Master is active for further transactions in the system. 

34.  After filling all the necessary details user need to save the record. 

3.2 CONTRACT LINE

Contract Line tab is used to enter the details of Products and Charge.  

Enter or select the following information on the Contract Line tab at the Contract Master screen:

1. ‘Organization’ and ’Contract’ are read-only fields and auto-populate based on selected record on the header tab.  

2. System will allow the user to select either ‘Product’ or ‘Charge’ through search info.

3. User may select ’Attribute Set Instance’ for the selected product.

4. UOM Field gets auto populate while selecting the product but user can change the UOM of the product if there are multiple conversions present. In case of Charge default UOM is auto populated.

5. User needs to enter the ’Amount’ for the Product or Charge.

6. User may enter ’Description’ and ’Comment’ for the Contract Line.  

7. 'Award recommendation line reference' field is mandatory on the basis of Award Recommendation value on the Contract header tab. If Contract is created with reference of Award Recommendation, then user can either use copy button or add contract line manually by selecting value in award recommendation line reference field. When user use copy button, then system will update the Award recommendation line reference automatically.

8. Check on the ’Active’ check-box and this check-box represents that this Contract Line is active for the following record in the system.

9. After filling all the necessary details user need to save the record. 

3.3 CONTRACT OWNER

Contract Owner tab is used to enter the details of User or Role.  

Enter or select the following information on the Contract Owner tab at the Contract Master screen:

1. ‘Organization’ and ’Contract’ are read-only fields and auto-populate based on selected record on the header tab.

2. System allows the user to either select the ‘User’ from search info and ‘Role’ from the list of values

3. Check on the ’Active’ checkbox and this check-box represents that this Contract Owner is active for the following record in the system.  

4. After filling all the necessary details user need to save the record.

3.4 CONTRACT TERMS

Contract Terms tab is used to enter the details of Contract Terms.  

Enter or select the following information on the Contract Terms tab at the Contract Master screen:

1. ‘Organization’ and ’Contract’ are read-only fields and auto-populate based on selected record on the header tab.  

2. ‘Line No.’ field gets auto-update with increment of 10, based on the number of record lines created. User can amend Line No. if required.

3. User needs to enter ’Term Description’ which is used to define the terms and conditions of the Contract based on the signed agreement between the parties.

4. User may enter ’Summary’ for the Contract based on the above terms and conditions.

5. Check on the ’Active’ check-box and this check-box represents that Contract Terms is active for the following record in the system.  

6. After filling all the necessary details user need to save the record.

Note:  Once the transactions are created against the contract then system will not allow to do the modifications in the existing values of the Contract.