Pricing Contracts

This chapter provides an overview of pricing contracts and discusses how to:

Price amount-based contracts.
Price rate-based contracts.
Use special payment terms.

Understanding Pricing Contracts

Pricing contracts is the process of allocating fixed amounts to amount-based contract lines and associating rates to rate-based contract lines. Before a contract can be activated, you must allocate any fixed amount defined for a contract across all amount-based contract lines. Before you can bill or recognize revenue for rate-based contract lines, you must first define your rate and fee structure and associate it to your rate-based contract lines to enable the system to generate appropriate billable and revenue amounts for processing.

In addition to allocating amounts and associating rates, pricing includes specifying discounts and surcharges when applicable.

This section discusses:

Amount-based pricing.
Rate-based pricing.
Recurring pricing.
Discounts and surcharges.
Renewals.
Special payment terms.
Contract line changes on a pending contract.
PeopleSoft Enterprise Pricer.

Amount-Based Pricing

After you define your contract, and add the products that make up your contract, the next step is to allocate the contract's fixed price amount across any eligible amount-based contract lines. In addition, you should allocate any discounts and surcharges to the contract lines. A contract cannot be set to an active processing status until the negotiated amount has been properly allocated to 100 percent across its contract lines and the allocation option on the Amount Allocation page has been set to Complete. The contract must have a processing status of Active to bill and recognize revenue for your contract lines.

To allocate your amount-based contract line amounts, use the Amount Allocation page. Amount-based, rate-based, and recurring contract lines appear on this page, but amount allocation only applies to amount-based contract lines. Rate-based and recurring contract lines appear as display only. If your contract contains rate-based or recurring contract lines only, amount allocation is not required, and you do not need to perform this step to activate your contract.

After you complete the amount allocation, set the allocation option to Complete, and save the Amount Allocation page, the system displays the summarized fixed price total on the Contracts-General page in the Negotiated Amount field. You can make changes to this fixed price amount only on the Amount Allocation page and only when the contract is in a pending processing status. Once the contract is in an active processing status, you must use amendment processing to make any changes to the fixed price amount.

For amount-based contract lines, use the Amount Allocation page to allocate amounts. This page works in conjunction with these information sources:

On the Contract - General page, define the negotiated amount for the contract.

This is an optional step. If you leave this field blank, you can define the negotiated amount for the contract on the Amount Allocation page.
On the Total Contract Discounts and Surcharges page, define a contract header discount or surcharge, and then allocate it to the individual contract lines.
On the Line Discounts and Surcharges page, define any contract line discounts or surcharges.
On the Amount Allocation page, allocate the negotiated amount that you define on the Contract - General page to the active amount-based lines on the contract.

Any time that you save the Amount Allocation page, the system populates all pricing fields on the contract with the allocated amounts that you designate on that page. To finalize the price allocation, you must set the allocation option to Complete, and save the Amount Allocation page. Upon saving the page, the system performs edit checking to ensure that all amounts are fully allocated.

Rate-Based Pricing

You do not allocate amounts for rate-based contract lines. Rate-based contract lines are priced using Project Costing rate sets and rate plans. Rate sets and rate plans can be defined for general use or for a specific contract. Once defined, you assign the rate set or rate plan to the rate-based contract using the Related Projects page. You can also use tiered pricing for rate-based contract lines. Tiered pricing is also defined on the Related Projects page. Use the Related Projects page to:

Assign the rate set or rate plan to the rate-based contract.
Apply discounts, retainages, and limits to rate-based contract lines.
Define tiered pricing for a contract line.
Define transaction limits for a contract line.

See Also

Working with Project Costing

Recurring Pricing

Pricing for recurring products is similar to pricing for amount-based products. The system uses either the list price or Enterprise Pricer to price products. For recurring products, the system does not store the price on the contract. Instead, the system dynamically generates the price when billing occurs, which enables the system to maintain a current recurring product price. The recurring price preview on the billing plan is also dynamically generated, which provides visibility for current and future billing periods.

Discounts and Surcharges

Discounts can be amount-based and rate-based. Surcharges are only allowed for amount-based contract lines. Discounts and surcharges are not allowed for recurring contract lines and for contracts with a contract classification of internal.

Amount-Based Discounts and Surcharges

An amount-based discount or surcharge (fixed amount contract line discount or surcharge) is any amount that is subtracted from or added to the original contract-negotiated amount. A discount can represent a discount, a referral fee, or any other activity resulting in a reduction to the negotiated contract amount. Discounts are associated with contract lines, and are defined as either a fixed amount or a percent of the line’s negotiated amount. When a discount or surcharge is sent to Billing, it is always a fixed amount. Amount-based discounts and surcharges include both header and line discounts and surcharges.

A header discount is any amount that is subtracted from the original contract-negotiated amount. A header surcharge is any amount that is added to the original contract-negotiated amount. You can define only one header discount or header surcharge per contract. Header discounts or surcharges must be allocated down to individual contract lines.

A line discount or surcharge is associated with an individual line. You can apply multiple discounts or surcharges to a single contract line. If you assign a discount or surcharge amount to a contract line from the Total Contract Discounts and Surcharges page, a row for that discount or surcharge amount appears with an indicator signifying that it is allocated from the overall discount or surcharge.

Rate-Based Discounts

A rate-based contract line discount is any amount that is subtracted from each billable resource line for projects and activities that are assigned to the same contract line. These discounts can be defined as a percentage or fixed amount, and are specified on the Related Projects page, where you specify the relationship between the project, the activity, and the contract line. The system passes the discount ID to Billing. Rate-based discounts are associated only with as-incurred billing plans.

See Working with Project Costing.

Reviewing and Updating Accounting Distributions for Discounts and Surcharges

Renewals

For a discussion of renewals, see the Entering Renewals chapter.

See Pricing Renewal Plans.

Special Payment Terms

On the Amount Allocation page, you define the pricing information that is specific to the contract products. You define this pricing information according to the standard terms and conditions that are specified within a contract. What is not captured here are any special payment terms that might be applicable to the contract based on the company's performance or on the customers' actions. Contracts defines this type of pricing information under the category of special payment terms. These special terms are categorized as early out options or as bonuses and penalties.

Early Out Options

Early out options define when a customer can terminate a contract without incurring a penalty, and the penalty schedule for terminating a contract after the early out options expire.

The information that you capture for early out options on the Special Payment Terms page is informational only; no processing is keyed from this information.

Bonus and Penalty Options

Bonus and penalty options define the conditions for bonuses and penalties. For example, the terms of a contract might entitle you to a bonus of 10,000.00 USD if you meet certain milestones within three months of the contract date, and might specify a penalty of 15,000.00 USD if you fail to meet the milestones at five months after the contract date.

The information that you capture for bonuses and penalties on the Special Payment Terms page is informational only; no processing is keyed from this information.

Contract Line Changes on a Pending Contract

Once you have created your contract, added your contract lines, and assigned rate sets or rate plans to your rate-based contract lines, or performed amount allocation across your amount-based contract lines, any changes that you need to make to the pricing structure is controlled by the processing status of the contract.

If the contract is in a Pending processing status, you can change your fixed amount contract totals, delete or add contract lines, and reallocate any amount changes across the amount-based contract lines. If different rate sets or rate plans are needed for your rate-based contract lines, you can update the Related Projects page with any changes that you need.

However, once the contract is in an Active processing status, any changes made to the pricing structure of an amount-based contract line must be made using amendment processing. If billing or revenue recognition has occurred against the contract lines impacted by the needed changes, then potentially, you may also need to cancel contract lines, or reverse billing or revenue before applying your pricing changes. You can make changes to the associated rate set or rate plan for a rate-based contract line without amendment processing.

Note. Even if the contract is in a Pending processing status, you must create an amendment to make changes to a contract line limit or to add a discount or retainage to a contract.

See Also

Amending Contracts

PeopleSoft Enterprise Pricer

If you have Enterprise Pricer installed, the application uses a complete set of rules that you set up to determine prices for products. These rules, along with integrations, enable Enterprise Pricer to populate prices in Contracts. Without Enterprise Pricer rules set up on your system, Contracts retrieves the product prices from the list price defined during product setup.

Warning! When setting up price rules for Enterprise Pricer, select the Line option in the Rollup By field in the Rules Attributes section of the Formulas page. Contracts supports this Line option only.

See Creating Price Rules.

Enterprise Pricer uses these price by fields:

Business Unit
Sold to Customer
Region
Contract Type
Product
Product Group
Ship to Customer
Ship to Address

When you set up the rules for Enterprise Pricer, Contracts requests pricing for these three processes:

Adding a product to a contract.
Renewing a line.
Generating recurring bills.

Note. For information about using Enterprise Pricer to price renewals, including the additional required setup in Enterprise Pricer, see the “Entering Renewals” chapter.

See Also

Pricing Renewal Plans

Pricing Amount-Based Contracts

This section discusses how to:

Allocate amounts.
Select percent-based contract lines.
Apply total contract discounts and surcharges.
Apply line discounts and surcharges.
View contract line discounts and surcharges.

Note. Discounts do not apply to recurring contract lines.

Pages Used to Price Amount-Based Contracts

Page Name	Object Name	Navigation	Usage
Amount Allocation	CA_PRICING_PNL	Customer Contracts, Determine Price and Terms, Amount Allocation	Allocate negotiated and discount and surcharge amounts to contract lines, and enter individual line discounts and surcharges. For percent-based lines that are priced as a fixed percentage of other lines or of the total amount, you can specify the fixed percentage and the lines to which it applies.
Percent-Based Pricing	CA_DETAIL_PRCNG	Click the button in the Contract Line Pricing section of the Amount Allocation page. Click the % of Lines link on the Amount Detail tab on the Contract - Lines page.	Select the contract lines to which a percent-based line applies. For example, if you are licensing two software products for fixed amounts and one year of technical support priced at 30 percent of the value of the product licenses, select the contract lines for those product licenses in the Applies to Line field.
Total Contract Discounts and Surcharges	CA_HDR_REDUC_PNL	Click the value in the Discounts/Surcharge field in the header section of the Amount Allocation page.	Apply a header discount or surcharge to a contract. This page is not available for recurring contract lines.
Line Discounts and Surcharges	CA_LN_REDUC_PNL	Click the Discounts/Surcharges link in the Contract Line Pricing section of the Amount Allocation page.	Apply line discounts and surcharges by selecting discounts and surcharges that are associated with an individual line. This page is not available for recurring contract lines.
Discounts/Surcharges Inquiry	CA_LN_DISC_PG	Click the Discounts/Surcharges link on the Amount Detail tab of the Contract - Lines page.	View discounts and surcharges that are associated with an individual line. This page is not available for recurring contract lines.

Allocating Amounts

Access the Amount Allocation page.

Note. When working in the Amount Allocation page, you can save your work at any time by clicking Save. When you click Save, any allocations that you make are reflected in the pricing fields across all Contracts components using these values. Clicking Save does not initiate edit checking; edit checking is initiated only when you set the status of the Allocation field to Complete and click Save.

For recurring contract lines and for contracts with a contract classification of Internal, fields that are related to discounts, surcharges, and prepaids do not apply.

Negotiated Amount	Displays the negotiated amount, which equals the gross amount of the contract. This field acts as a control total on this page. You cannot set the Allocation field to Complete until the sum of the contract lines totals the amount that is entered in this field. This same field is available in the Contract Entry component. When you click Recalculate, the system populates this field with the sum of the negotiated amounts of lines appearing in the Contract Line Pricing region.
Discounts/Surcharges	Displays the amount of discounts or surcharges, which equals the sum of all header and line discounts or surcharges for amount-based contract lines that are defined for this contract. Click the link to access the Total Contract Discounts and Surcharges page to define an overall contract discount or surcharge. Note. This link does not appear for contracts with a contract classification of Internal. When you click Recalculate, the system calculates the allocated discounts by subtracting the sum of the discounts and surcharges that you allocated to the individual contract lines from the discounts and surcharges.
Net Amount	Displays the net amount, which the system calculates by subtracting the value appearing in the Discounts/Surcharges field from the value appearing in the Negotiated Amount field.
Unallocated Amount	Displays the fixed amount that has yet to be allocated across eligible amount-based contract lines. This amount must equal zero before you can set the allocation option to Complete.
Inclusive Prepaids	Inclusive prepaids are fixed amounts that are purchased at the time of contract signing, which are used in the future as activity is incurred against rate-based contract lines. These balances are inclusive if you factor them into the original negotiated contract amount. The sum of all inclusive prepaids appears on this page and is used by the system in calculating the unallocated amounts. Prepaid balances that are not factored into the original negotiated contract amount or purchased after contract signing are referred to as noninclusive. Noninclusive prepaids do not appear on this page.
Allocation	Select the status of amount allocations. Values include: Incomplete: This value appears by default and indicates that amount allocation has not been completely performed for amount-based contract lines. Complete: Select this value once you have allocated any contract line amount changes across all eligible amount-based contract lines. Selecting this option initiates system edit checking to ensure that you fully allocate the amount and discount or surcharge to the active contract products. Note. Contracts with amount-based contract lines must have the fixed amount for the contract completely allocated across any amount-based contract lines assigned to the contract, and have the Allocation option set to Complete before the contract can be activated. If you have a contract with only rate-based or recurring lines, it is not necessary to set the Allocation field to Complete. If you allocate to contract lines based on their percentages of the total contract negotiated amount, after entering and applying percentages that total 100, you may be required to allocate the rounding difference as a fixed amount to one of the contract lines before you can set the Allocation field to Complete.
Recalculate	When you click this button, the system calculates the values on the page based on the information that you input for percent and the value in the Negotiated Amount field, as well as the discounts and surcharges that you specify on the Total Contract Discounts and Surcharges page and the Line Discounts and Surcharges page.

Contract Line Pricing

Use the fields in this group box to allocate the negotiated amount across individual contract lines. The system displays all contract lines with an Active status.

Note. Contract lines representing rate-based and recurring products are unavailable for selection; you do not perform allocations on these contract lines or link them to header or line discounts. You can enter a discount for each rate-based contract line on the Projects tab on the Contract - Lines page.

Line # (line number)	Displays the contract line number assigned to the contract line when it was added to the contract.
Product	Displays the product identifier associated with the product when it was defined on the Product Definition page.
Price Type	Displays the price type associated with the product.
Line Status	Displays the status of the contract line. Only active amount-based contract lines are included in amount allocation.
Quantity	Displays the quantity associated with the contract lines.
Extended Price	Displays the list price multiplied by quantity for amount-based contract lines.
Negotiated Amount	If the value of a contract line is equal to a fixed amount, enter that amount in this field. When you first access this page, the negotiated amount is set to the list price that you define for the product. The negotiated amount for a percent-based product is display-only. Rate-based products are not factored into the contract-negotiated amount. These products do not represent specific monetary amounts; they reflect a set of rates that are to be applied as service or transaction-oriented work is performed. Recurring contract lines represent open-ended periodic billing. Therefore, the system does not store a value for the total amount on the contract.
	Click to access the Percent-Based Pricing page to manage the percentage and applies-to lines for the contract line. This button appears for contract lines with a price type of percent.
Discounts/Surcharges	For products with a price type of amount or percent, click this link to assign line-specific discounts to the contract line. Note. When you assign discounts to a contract line, the system generates discount-specific accounting distributions on the Accounting Distributions Discounts page. This field does not appear for contracts with a contract classification of Internal.
Net Amount	Displays the net amount after subtracting the total discounts or surcharges that you specify for a line from the negotiated amount that you allocate to that line.

Line Totals

Negotiated Amt (negotiated amount)	Displays the total allocated amount for all amount-based contract lines for the contract.
Discounts/Surcharges	Displays the total line level discounts and surcharges associated with the amount-based contract lines.
Recalculate	Click to have the system recalculate the unallocated amount, net amount, and line total negotiated and discount amounts. The system automatically updates the allocation status to Complete if the unallocated amount is 0.

See Also

Setting Up Products and Product Groups

Entering Accounting Distributions

Selecting Percent-Based Contract Lines

Access the Percent-Based Pricing page.

Note. If you access this page from the Amount Detail tab of the Contract - Lines page, the values on the page are display-only.

Fixed % of Basis Amount

Enter the percent of the basis amount that is represented by this contract line.

Basis Type

Displays the basis type. Values are:

% of Lines: Indicates that the pricing for this contract line is calculated as a percentage of the sum of the negotiated amounts of one or more contract lines. If the basis type is % of Lines, you must select the appropriate lines in the Applies to Line # (applies to line number) column.

% of Total: Indicates that the pricing for this contract line is calculated as a percentage of the total contract negotiated amount.

Negotiated Amount

Displays the negotiated amount, which equals the percent that is multiplied by the basis amount.

Basis Contract Lines

Applies to Line #

Select the contract lines to which this % of Lines percent-based contract line applies. The list of values contains any active amount-based lines within the contract.

The product, description, and negotiated amount for the applies-to line that you selected appear. Any subsequent adjustments that you make to the negotiated amount of the applies-to lines are reflected in the pricing for this product before the contract is activated.

Basis Amount

Displays the basis amount, which equals the sum of the negotiated amounts of all the applies-to lines that you select. For contract lines for which the basis type is % of Total, the basis amount is equal to the negotiated amount of the total contract.

Applying Total Contract Discounts and Surcharges

Access the Total Contract Discounts and Surcharges page.

Overall Discount/Surcharge

ID	Select an ID to populate the Description and Percentage or Amount fields with the information that is defined for the discount or surcharge ID.
Percentage	If you define a percent for the selected discount or surcharge ID, that percent appears and you can edit it. If you did not define a percent for the discount or surcharge ID, you can enter one here. Note. Discounts and surcharges are defined by either amount or percent. You can edit this field if you choose to define the discount or surcharge by percent only.
Amount	If you define an amount for the selected discount or surcharge ID, that amount appears and you can edit it. If no amount is defined for the discount or surcharge ID, you can enter one here. Note. Discounts and surcharges are defined by either amount or percent. You can edit this field if you choose to define the discount or surcharge by amount only.
Apply Overall After Line	Select to have the system apply the header discounts or surcharges to contract lines after it applies any contract line discounts or surcharges that you specify on the Line Discounts and Surcharges page.

Total Discounts/Surcharges

Header	Displays the value of the header discount or surcharge that you assign to this contract. You can define only one header discount or surcharge for a contract, and the amount must be completely allocated across applicable contract lines.
Line	Displays the sum of all discounts or surcharges that you define for individual contract lines on the Line Discounts and Surcharges page. This amount does not include discounts or surcharges that are allocated to lines from the header discount or surcharge.
Discounts/Surcharges	Displays the total discounts and surcharges for this contract after adding the header discounts or surcharges to the total line discounts.

Allocate Overall Discount /Surcharge to Contract Lines

Product	Displays the product name for each product that is selected onto the contract line and saved with an active status, along with that product's price type, description, and negotiated amount.
% of Overall	Enter the percent of the total header discount or surcharge amount that the system should apply to each contract line. You can apply discounts and surcharges only to contract lines with a price type of Amount or Percent.
Allocated Amount	When you click Calculate, the system calculates the line discount or surcharge amounts for each line based on the values that you enter in the % of Overall column.

Click OK to save your work and to transfer the discount information that you define to the Amount Allocation page.

Applying Line Discounts and Surcharges

Access the Line Discounts and Surcharges page.

Negotiated Amt (negotiated amount)

Displays the negotiated amount that you define for the contract line on the Amount Allocation page.

Discounts/Surcharges

Displays the sum of the discounts and surcharges that are listed in the group box. This includes the discounts and surcharges that are attached directly to the contract line, as well as the discounts and surcharges that are allocated from the contract header (Total Contract Discounts and Surcharges page).

Net Amount

Displays the net amount of this contract line after subtracting the sum of all discounts and surcharges that are associated with this contract line from the line's negotiated amount.

Identifier

Select an identifier, to apply a discount or surcharge to a contract line. The system populates the following fields with the values that you define for the identifier (discount or surcharge).

Allocated

The system selects this check box for discount and surcharge rows that you allocate from the overall discount or surcharge to this contract line on the Total Contract Discounts and Surcharges page. This box is informational only.

Discount/Surcharge

Indicates whether this line is a discount or surcharge.

Percent

If you define a percent for the discount or surcharge, that percent appears and you can edit it. If you did not define a percent for the discount or surcharge, you can enter one here. The system multiplies the percent by the negotiated amount to obtain the line discount amount.

Note. Discounts and surcharges are defined by either amount or percent. You can edit this field if you choose to define the discount or surcharge by percent only.

Amount

If an amount is defined for discount or surcharge, that amount appears and you can edit it. If you did not define an amount for the discount or surcharge, you can enter one here.

Note. Discounts and surcharges are defined by either amount or percent. You can edit this field if you choose to define the discount or surcharge by amount only.

Viewing Contract Line Discounts and Surcharges

Access the Discounts/Surcharges Inquiry page.

This is a view-only version of the Line Discounts and Surcharges page; the fields are the same.

Pricing Rate-Based Contracts

For a discussion of setting up rates and applying discounts, retainages, and limits to rate-based contract lines, see the “Working With Project Costing” chapter.

See Also

Working with Project Costing

Using Special Payment Terms

This section discusses how to:

Set up special payment terms.
Amend special payment terms.

Page Used for Using Special Payment Terms

Page Name	Object Name	Navigation	Usage
Special Payment Terms	CA_TERMS_PNL	Customer Contracts, Create and Amend, Special Payment Terms	Set up special payment terms by adding optional payment term details to the contract, such as bonus or penalty amounts and early out options.

Setting Up Special Payment Terms

Access the Special Payment Terms page.

Amendment

Displays the current amendment number and date of the amendment if this contract is amended through amendment processing.

Early Out Options

Early out options specify the clauses under which a customer can terminate a contract prior to its completion. You can enter multiple early out options for each contract. For example, you might include a clause that gives customers a 30-day acceptance period in which they can terminate the contract for any reason, and also include a clause that runs for the lifetime of the contract in which customers can terminate the contract in case of bankruptcy.

Early Out Code	Select an early out code from the list of early out options that you define on the Define Early Out Options page.
Reason	If you select an early out code, the reason that you define for that code on the Define Early Out Options page appears.
Early Out Status	Select Active or Inactive.
Notification Days	Specify the number of days prior to the end date to flag an early out option that is near expiration.

Select values for the Start Date and End Date fields to designate the time frame in which a customer may exercise the early out option. If the system date does not fall within the specified start and end dates, the specified early out option code does not apply.

Penalty Type	Select Amount or Percent.
Penalty Percent	If you selected a penalty type of Percent, you must enter a penalty percent. The system penalty is then calculated based on the total contract-negotiated value. If you selected a penalty type of Amount, this field is unavailable for entry.
Penalty Amount	If you selected a penalty type of Amount, you must enter a penalty amount. The penalty is the amount that you specify here. If you select a penalty type of Percent, this field is unavailable for entry.
Early Out Option Notes	Click to create an internal note regarding the early out options.

Bonus and Penalty Options

Incentive ID	Enter the ID for this bonus or penalty.
Approved	Select if the incentive is approved.
Date of Approval	Enter the date that this incentive is approved.
Incentive Status	Select Active or Inactive.
Incentive Type	Select an incentive type. Values are: Bonus: Incentive rewards the customer with a credit amount. Penalty: Incentive punishes the customer with a fee.
Bonus Penalty Notes	Click to create an internal note regarding the bonus or penalty.

Computation Basis

Amount	Enter an amount if the incentive is a fixed amount.
Percentage	Enter a percentage if the incentive is for a percentage of the contract gross amount.

Amending Special Payment Terms

After you save a contract to a contract status that is mapped to an Active processing status, any changes or updates that you need to make to the contract's special payment terms must be made as part of an amendment by using the amendment processing functionality.

See Also

Amending Contracts

Negotiated Amt (negotiated amount)	Displays the negotiated amount that you define for the contract line on the Amount Allocation page.
Discounts/Surcharges	Displays the sum of the discounts and surcharges that are listed in the group box. This includes the discounts and surcharges that are attached directly to the contract line, as well as the discounts and surcharges that are allocated from the contract header (Total Contract Discounts and Surcharges page).
Net Amount	Displays the net amount of this contract line after subtracting the sum of all discounts and surcharges that are associated with this contract line from the line's negotiated amount.
Identifier	Select an identifier, to apply a discount or surcharge to a contract line. The system populates the following fields with the values that you define for the identifier (discount or surcharge).
Allocated	The system selects this check box for discount and surcharge rows that you allocate from the overall discount or surcharge to this contract line on the Total Contract Discounts and Surcharges page. This box is informational only.
Discount/Surcharge	Indicates whether this line is a discount or surcharge.
Percent	If you define a percent for the discount or surcharge, that percent appears and you can edit it. If you did not define a percent for the discount or surcharge, you can enter one here. The system multiplies the percent by the negotiated amount to obtain the line discount amount. Note. Discounts and surcharges are defined by either amount or percent. You can edit this field if you choose to define the discount or surcharge by percent only.
Amount	If an amount is defined for discount or surcharge, that amount appears and you can edit it. If you did not define an amount for the discount or surcharge, you can enter one here. Note. Discounts and surcharges are defined by either amount or percent. You can edit this field if you choose to define the discount or surcharge by amount only.