Projects:Procurement Contract/User Guide

Contents 1 Introduction 2 Configuration 2.1 Apply dataset 2.2 Contract type 2.3 Billing Group 2.4 Contract Invoice Schedule 3 Procurement contract 3.1 Header Tab 3.2 Lines Tab 3.3 Complete Lines 3.4 Invoice Plan Tab 3.5 Other Actions 3.6 Invoicing History Tab 4 Procurement Contract Billing Process

Introduction

This project implements the ability of creating procurement contracts and its configuration defining the business partner, the products, the invoice schedule (frequency), billing group, etc. Based on this configuration the system is able to create an invoice plan for the corresponding contract that will be used to generate purchase invoices. But prior to generate the invoices the system allows the user to modify the quantity or the price of each invoice line. Finally when everything is ok the user can confirm the invoice and then it will be generated

Configuration

Several steps are needed to make this feature work

Apply dataset

Thanks to this dataset the systems generates/simulates the invoices that can be modify prior to be complete:

1. Go to Enterprise module management
2. Select (*) organization
3. Select Procurement Contracts data set
4. Press OK button

Contract type

In order to register a procurement contract it is mandatory to define a contract type. At least one:

1. Go to Contract Type window
2. Click New and:
   1. Enter Organization, name
   2. Unmark Sales Contract field
   3. Mark Service Contract field

Billing Group

In order to group lines defined within a contract it is mandatory to define a billing group. If the lines of a contract does not have any billing group then the system will create as many invoices as lines has the contract. But in the same way the billing group does not mean to gather all lines in one invoice. It also depends on the business partner and partner address define in each contract line. The sequence to group lines would be: Billing group - Business partner - Business partner address

1. Go to Billing Group
2. Click New and enter the organization and name

Contract Invoice Schedule

In this window the user can define different frequencies depending on what he desires. The configuration can be quite complex because it is allowed to setup many things.

That's why there is a check Use Example Period that allows you configure what you want in an easy manner. Imagine that contracts are defined by the following:

1. The frequency can be Monthly, Quarterly, Biannually and Annually
2. The billing is released every 25th for Monthly
3. The billing is released every 25th in arrears for Quarterly, Biannually and Annually

The configuration then would be:

Monthly:

Quarterly

Biannually

Annually

Procurement contract

Header Tab

The header provides the main information for a specific such as Contract Type, Name, Business partner, Address, Starting Date, Duration, Duration Unit, etc This is only default information because what finally matters is what you define for each contract line. However the user does not need to enter the information again because it is replicated from to the lines. This allows to have different configurations (business partners, products, frequencies) in the same contract

Lines Tab

1. The frequency of the contract will be: Monthly, Quarterly, Biannually and Annually
2. This contract will be invoice to two different persons

Typically configuration for the Monthly frequency would be. See image:

• Search key: It is generated by default. It is the result of the Search key of the header plus - 10 and so on
• Contract invoice schedule: Monthly
• Business partner and the rest of the fields related to it: all of them are filled by default from what has been previously defined in the header. Can be changed
• Product (notice that only products set as "Expense type" can be choosen), price and quantity
• Bill to: In case the business partner is different from the header/line. But it can also leave blank and change the business partner of the line
• Billing group: Very important if group lines are required

Following the example defines lines above this would the contract lines:

• Four lines for Service provider 1 in all frequencies
• Four lines for Service provider 2 in all frequencies

Complete Lines

The contract cannot be completed and has to be done line by line. This solution allows to enter more line in the contract in case it is required. The other way and managing the contract as a whole it would be impossible since the contract would be completed. To complete a Line, press the button Complete:

• Generate Invoice Plan: Based on the conditions defined in the contract an invoice plan will be generated
• Don't Modify Invoice Plan: Completes the contract line without generating any invoice plan keeping what it is currently defined

Invoice Plan Tab

Based on the first line contract. See image:

Since the line is monthly and the contract starts the 1st of January and the duration is 3 years it creates 36 lines. Important fields:

• Starting/Ending date: Defines the period
• Invoicing Date: When the bill is launched
• Invoice date: The date of the invoice
• Status: Whether that period has been invoiced or not

When the invoice has been generated two fields present in the lines are updated as well:

• Invoice plan amounts: The result of summing all invoice plan lines
• Contract status: The status of the line.
  • Draft when it is not completed
  • Active when the invoice has been generated

Apart from this the invoice plan can be created manually and not based on the conditions defined for the line. That's why when completing the line there is the option Don't modify invoice plan. This option should be used in case the Invoice Plan has been created manually and you want to keep what it is already in place

Other Actions

• Reactivate

A line can only be reactivated if has not been invoiced yet. If one of the invoice plan lines has been invoiced then this action cannot be performed

• Update invoice plan

The invoice plan can be updated just for the lines that has not been invoices yet. This action makes only sense if the price or the quantity is changed. Then for the invoice plan lines that have not been invoiced the line net amount is updated

• Terminate

This action changes the status of the line to Expired and no further actions are allowed unless it is reactivated again

Invoicing History Tab

This tab shows all the invoices related to a contract line

Procurement Contract Billing Process

Based on the filters this process simulates the lines and invoices that the system will create after confirming them. Filters are:

• Organization: Only contracts that belong to that organization
• Starting and Ending Date: Defines the period that wants to be invoiced. Any invoice plan within that period will be invoices
• Business partner: Only contracts that belong to those business partners
• Product: Only contracts that have those products
• Current: Only contracts where have invoice plan lines after the starting date
• Previous: Only contracts where have invoice plan lines before the starting date

Once all the filters are as desired press the Done button. This will open a new window with all the invoice lines pending to be confirmed

Only Invoiced Quantity and Net Unit Price fields can be edited. Once everything is ready you must select all the lines and click the button Create Invoice

In this case the system will create six invoices in status Complete, one per each period