Customer Contract – Contract Items - HxGN EAM - 11.07.01 - Feature Briefs - Hexagon

HxGN EAM Contract Management

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English
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HxGN EAM
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Feature Briefs
HxGN EAM Version
11.7.1

A Customer Contract must have at least one Contract Item. A Contract Item is a work order, a project, or equipment which is part of the contract and for which the customer will be invoiced. You can associate as many Contract Items to a contract as needed.

Contract Items have the following important attributes:

  • Equipment or Project / Budget or Work Order - You must select exactly one of these. Select freely among organizations if the Customer Contract is associated to a common organization. If the Customer Contract organization is specific, the selection is limited to this organization.

    Work order cost collected on the children of the selected equipment are also included, as displayed on the Costs tab on the Equipment screen.

  • Customer - The default here is that this will be the same as the selected customer on the contract header. However, it is possible to change the customer here. The new customer must always be a child of the customer on the contract header. This way the system supports a contract with the parent company while supplying the services to a subsidiary of the parent company. Note that the customer hierarchy can be defined on the Customer screen. There is no limit to how often or how many subsidiaries are used on Contract Items of the same Customer Contract.

  • Invoicing Organization - This field determines the organization that will collects the cost information that forms the basis for the Customer Invoice. If the Customer Contract is associated to a common organization, you can pick any organization here if it is consistent with the selected Contract Item. This way the system can support contracts where you deliver services from a US organization to a subsidiary in the US tracked in USD and from a Canadian organization to a subsidiary in Canada tracked in CAD and then invoice the parent company in Amsterdam in Euros. The Invoicing Organization must be a specific organization.

  • Contract Template - Not a mandatory field but especially useful if the related Contract Item is an exception. For example, the contract has 20 cars associated. All of them are 5 passenger sedans in the same class, but 2 Contract Items are excavators. Using the Contract Template on the contract header you can set the invoicing strategy, called Charge Definition, for all Contract Items. However, since the two excavators are much more expensive than the sedans, you can use the Contract Template on the two excavators to give them their own individual Charge Definition. Again, the reference to the Contract Template will copy the data from the template to the Contract Item on the contract. Any later changes to the template will not influence the contract anymore.

  • Tax Code - Value defaults from the selected customer. Value can be changed to adjust to the location where the services are delivered.

  • Invoicing Description - Optional description that will be listed on the invoice.

  • Use Fixed Exchange rate - Works the same as on the contract header, but here you can overwrite for a specific Contract Item.

  • Start Date / End Date - Equipment may be on the contract for the whole time. In that case, you can leave these blank. But it is also possible to include equipment for less time. Think of equipment needed for a short time only, or damaged equipment that is replaced with another piece.

  • Time based usage - Enter a Usage Quantity and related UOM. You may want to use this when invoicing a rented or leased space. If you have a rate per square foot, you can either multiply the rate with the 100 square foot you are renting out and enter that on the Charge Definition record as the Rate, in which case you leave these fields blank. If you specify the Rate on the Charge Definition record per square foot, you must enter 100 in the Usage Quantity here to get to the proper amount on the invoice.

  • Equipment Sales - When the Contract Item is equipment you can opt to sell the equipment at the end of the lease period for example. When exercise Option is selected, and the Exercise Date has passed the Generate Invoices Process will automatically include the sales transactions in the invoicing process.

    1. Enter the Sales Price.

    2. Sales Tax if applicable.

    3. Equipment Status After Sale - The system will update the equipment status automatically as part of the sales process.

    4. Exercise option - This check box controls whether the option is activated (sale is on) or not. You can select this check box at any time, even after the contract is approved but before the End Date of the contract.

    5. Exercise Date - The date on which the sales transaction can be invoiced. You can select this date at any time, even after the contract is approved but before the End Date of the contract.

  • Buttons

    • Reset All Contract Templates - For all Contract Items reset the Contract Template value to the setting on the equipment record. If the Contract Item is a project or a work order the template will be removed. Update Charge Definitions accordingly.

    • Reset Contract Templates - Same but only for the selected Contract Item.

    • Reset All Charge Definitions - For all Contract Items reset Charge Definitions back to header level if no Contract Template is referenced, or to the Charge Definitions of the Contract Template attached to the Contract Item.

    • Reset Charge Definitions - Same but only for the selected Contract Item.

    • Reset All Tax Codes - For all Contract Items reset the Tax Code to header level. If the Contract Item references a different Customer than on the header, use the Tax Code of this Customer instead.

    • Refresh All Exchange Rates - For all Contract Items refresh the Exchange Rate

    • Update Energy Preferences - Save the Energy settings of all commodities and all equipment referenced on the contract.