Contracts Definition - BU Definition (contracts definition - business unit definition)

BUS_UNIT_TBL_CA

Set Up Financials/Supply Chain, Business Unit Related, Contracts, Contracts Definition, BU Definition

Create a new Contracts business unit definition or manage an existing business unit.

Contracts Definition - Defaults

BUS_UNIT_TBL_CA1

Set Up Financials/Supply Chain, Business Unit Related, Contracts, Contracts Definition, Defaults

Specify field value defaults that the system uses to automatically populate fields on the contract that are used for contract processing and management.

Contracts Definition - Processing Options

BUS_UNIT_TBL_CA2

Set Up Financials/Supply Chain, Business Unit Related, Contracts, Contracts Definition, Processing Options

Define processing attributes to incorporate flexibility and automation in your Contracts system when managing revenue, or performing billing and revenue credits and adjustments.

Contracts Definition - Fee Definition

CA_BU_FEE_DEF

Set Up Financials/Supply Chain, Business Unit Related, Contracts, Contracts Definition, Fee Definition

Used exclusively by contracts with a classification of Government for cost-plus contract lines to associate a fee type to the contract line to have cost-plus functionality. The system uses the Fee Type definition to calculate the appropriate fees for the contract line.

See Defining Contracts Business Unit Fee Definitions.

GL Unit

Associate each Contracts business unit with a General Ledger business unit. General Ledger business units define the accounting processing for associated Contracts business units. All contracts created for this Contracts business unit use this General Ledger business unit to generate entries that interact with General Ledger.

OM Unit

Select a default Order Management business unit for contracts created under this Contracts business unit. You can only select Order Management business units that are linked to the same General Ledger business unit as this Contracts business unit.

BI Unit

Select a default Billing business unit for contracts created under this Contracts business unit. You can only select Billing business units that are linked to the same General Ledger business unit as this Contracts business unit.

Currency Code

Select the currency code that will appear by default as the contract currency on contracts created using this business unit.

Rate Type

Select the group of exchange rates used to convert contract currency amounts to the base currency of the General Ledger system. You set up rate types when defining your general options.

Enforce Contract Status Security

Select to limit the list of users who can change the status of a contract to only those to whom you have given security access on the User Preferences - Contracts page.

Delete Internal Notes

Select to enable users to delete internal notes.

Update Internal Notes

Select to enable users to update internal notes.

Contract Admin (contract administrator)

Select a contract administrator for this business unit. This value automatically populates the contract administrator field on the contract header.

Contract Type

Select a value to categorize the contracts for reporting purposes.

Dist Rule Code (distribution rule code)

Select the distribution rule code for the business unit. The distribution rule code identifies the distribution rules to use for a particular product when the product is selected onto the contract within this Contracts business unit. You can define any number of combination criteria and hierarchy for the distribution rules. These rules tell the system how to identify and in what order to apply the accounting distribution sets.

Unbilled AR (unbilled accounts receivable)

When you manage revenue from Contracts, revenue is booked to an unbilled AR account. When billing occurs, Billing generates an offsetting entry. The system uses this unbilled AR account as the high-level default value for every contract entered in this business unit.

Note. If deferred revenue is turned on at the installation options level, an unbilled AR/deferred revenue entry is generated, and revenue is moved from deferred when booked.

Legal Entity

Select a legal entity for this business unit. While this legal entity is not directly linked to the legal entity in General Ledger, this field allows you to capture which legal entity contracted with the customer on each contract. This value, which is a default on the contract, can be overridden. This value automatically populates the appropriate field on the contract header.

Bill Type

Select a default bill type for contracts created under this Contracts business unit. The bill type represents the category of activity being billed.

Bill Source

Select to enable Billing to identify where the billing activity came from and then to associate default billing information with that billing activity.

Ship From

Select from location codes defined on the Location Definition page. This value is used as a default for each contract but can be overridden on the billing plan. The system uses the ship from value as a portion of the location information that determines value-added tax.

Prepaid Tax Timing

Select the timing of when prepaids are taxed. Select fromTax on Initial Bill or Tax on Utilization. This value appears by default on the prepaid setup for contracts created using this business unit. You can override this value on the prepaid setup pages.

Progress Payment Rate

Enter the progress payment rate percentage that you wish to use for your government contracts. This value appears by default on the Progress Payment Terms - General page and can be overridden

Liquidation Rate

Enter the progress payment liquidation rate percentage that you wish to use for your government contracts. This value appears by default on the Progress Payment Terms - General page and can be overridden

Deferred Revenue Override

Select to indicate whether a user can override the deferred revenue option on the contract line. At the product group level, you specify whether to use deferred revenue for a product group. The product group attributes for deferred revenue appear by default on the contract line. If you select this deferred revenue override option at the business unit level, you can override the deferred revenue option that automatically populates from the product group. Therefore, if you do not turn on deferred revenue at the product group level, you can still select it at the contract line level as long as you selected the deferred revenue override option at the business unit level.

If you do not select this check box and deferred revenue is not specified for a product group, the deferred revenue option is unavailable for the contract line, and the Deferred Revenue tab does not appear.

Booking to deferred revenue enables you to post to the general ledger revenue that you expect to realize in a future accounting period. If a contract is in Pending status, you can turn deferred revenue on or off at the contract line level. If a contract is in Active status, you cannot change this setting on the contract line and you must use amendment processing. However, you can use amendment processing to turn deferred revenue on or off only if this override is selected and if no deferred revenue or revenue processing has occurred.

Revenue Recognition Method Override

The contract line inherits its revenue recognition method from the product definition. Select this override check box to enable users to change the revenue recognition method on a contract line. When this override check box is not selected, the system processes the revenue for the contract line by the default revenue recognition method.

Edit Combinations

Select the Edit Combinations check box if you want the Accounting Rules Process (PSA_ACCTGGL) to run the combination edit process for transactions processed by the Transaction Billing Processor.

Note. The Edit Combinations feature is only used by the Transaction Billing Processor.

Proration Method

Provides the rules that the system uses to determine how much to apportion to each event for revenue plans with a revenue recognition method of apportionment. Select from:

• By Days Within Range: The system divides the number of days in the period by the number of days in the range.

• Evenly Using all Pds: The system divides the total amount by the number of periods in the range. Revenue is recognized in equal portions for each event, regardless of the number of days in each period.

Future Period Accounting Dates

Stipulate the date that should be used as the accounting date for apportionment revenue recognition events. Select from:

• First Day in Accounting Period: Select this option to use the first day in the calendar month of the from date as the accounting date for the apportionment revenue recognition events.

• Last Day in Accounting Period: Select this option to use the last day in the calendar month of the to date as the accounting date for the apportionment revenue recognition events.

• User Defined: Select this option to specify the accounting date each time the system builds apportionment events.

Bill Plan Detail Template ID

Select a bill plan detail template ID to override the fields on the billing plan for on-demand contracts. If you select a template on this page, the billing plan detail template overrides the corresponding fields on the billing plan when a billing plan is created through Contract's integration with the Transaction Billing Processor.

Review Timing

Enter a value from 0– 999 in days. The system uses this value to determine when you must begin reviewing renewable contract lines. You can override this value for each renewable contract line on the Review Renewals page using either the control or default settings that you select on this page.

Control

Select the Control option to enable users to override the Review Timing Days field on the Review Renewals page with a value that is greater than or equal to the value entered in the Review Timing field.

Default

Select the Default option to enable users to override the Review Timing Days field on the Review Renewals page with a value that is less than, greater than or equal to the value entered in the Review Timing field.

Change Billing Retroactively

Select this option to enable the system to adjust billing events retroactively when a contract line is cancelled or the contract line amount is modified during amendment processing. The option selected at the business unit level can be overridden at the contract line level.

If this option is not selected at the business unit or contract line level, the user can only adjust any remaining future events for the contract line.

Change Revenue Retroactively

Select this option to enable the system to adjust revenue events retroactively when a contract line is cancelled or the contract line amount is modified during amendment processing. The option selected at the business unit level can be overridden at the contract line level.

If this option is not selected at the business unit or contract line level, the user can only adjust any remaining future events for the contract line.