Configure a contract item

Before you proceed

Make sure that non-stock items are properly configured for each service you want to include in a contract item.
For details on configuring non-stock items, see: About non-stock item support.

The offered instruction is divided into four parts: general settings (required), setup, renewal, and setting up recurring invoicing.
You can refer to the parts that you need to configure the contract item you want to offer and skip other parts.

1. Go to the Contract items (CT201000) window.
2. Click .
3. Optional: Specify the ID manually in the Contract item field.

   The unique ID of a contract item is formed in accordance with the CONTRACTITEM segmented key.
   If the Contract item field contains the <NEW> place holder, it means that auto-numbering is enabled for the key segment and the ID is assigned automatically.

4. In the Description field, type a brief description of the services included.
5. In the top part of the Price options tab, do the following:
   1. In the Maximum allowed quantity and Minimum allowed quantity fields, type the quantity limits for the provided services.
   2. In the Default quantity field, type the service quantity that is included in the contract by default.

      This value can be modified in a template or a contract within the allowed limits (which are defined by Maximum allowed quantity and Minimum allowed quantity). If service usage has exceeded the included quantity, the difference is considered extra usage.
      Allowed quantity limits are not applied to extra usage.

   3. In the Currency ID field, select the currency of this contract item.
      You should use non-stock items priced in one currency within each contract item.
6. To set up pricing for a service to be provided as a part of contract setup, in the Setup and renewal area, do the following:
   1. In the Setup item field, select the non-stock item you want to provide and invoice when contract setup occurs.
   2. In the Setup pricing field, select the pricing policy. The following options are available:
      • Use item price:
        Select this option if you want to use the base price of the non-stock item.
        If a price is configured for a customer price class and a customer that purchases this service belongs to this price class, then the price from the customer price class is used.
      • Percent of item price:
        Select this option if you want the price to be calculated by applying the percent specified in the Item price/percent field to the base price of the non-stock item.
      • Enter manually:
        Select this option if you want to specify the price manually in the Item price/percent field.
        Selecting this option means you can not modify the price later in the contract.
   3. (Skip this step if you have selected Use item price in the Setup pricing field.)
      In the Item price/percent field, type the item price or percent, depending on the pricing policy you have selected.
   4. Skip the Retain rate and Deposit elements, which are used only for creating a contract item to serve as a prepayment.
      For details, see: Create a deposit contract item.
   5. Select the Refundable check box if you want to allow the amount the customer paid for setup to be refunded in case of contract termination.
      The setup fee is refunded if both the contract template and this contract item are marked as refundable.
      If the renewal fee is collected on activation, it is refunded along with the setup fee.
      Recurring charges are refunded in proportion to unused services in case of termination.
   6. Select the Prorate setup check box if you want to allow the amount the customer paid for setup to be invoiced in proportion to unused services in case of termination or changes in contract terms.
   7. Optional: If you have finished specifying settings for the contract item, click. Otherwise, proceed with the part of instruction you need.
7. To set up pricing for a service to be provided when contract renewal occurs, on the Setup and renewal area, do the following:
   1. In the Renew item field, select the non-stock item you want to provide and invoice when contract renewal occurs.
   2. Select the Collect renewal fee on activation check box if you want to invoice the customer for services provided on renewal both at the moment of contract activation and at contract renewal. For a usage example, see: About fixed-price contracts.
   3. In the Renewal pricing field, select the pricing policy. The following options are available:
      • Use item price:
        Select this option if you want to use the base price of the non-stock item.
        If a price is configured for a customer price class and a customer that purchases this service belongs to this price class, then the price from the customer price class is used.
      • Percent of item price:
        Select this option if you want the price to be calculated by applying the percent specified in the Item price/percent field to the base price of the non-stock item.
      • Percent of setup price:
        Select this option if you want the price to be calculated by applying the percent specified in the Item price/percent field to the setup price of the contract item.
      • Enter manually:
        Select this option if you want to specify the price manually in the Item price/percent field.
        Selecting this option means you can not modify the price later in the contract.
   4. (Skip this step if you have selected the Use item price option in the Renewal pricing field.)
      In the Item price/percent field, type the item price or percent, depending on the pricing policy you selected.
   5. Optional: If you have finished specifying settings for the contract item, click .
      Otherwise, proceed with the part of the instruction you need.
8. To set up pricing for service to be provided recurrently, in the Recurring invoicing area, do the following:
   1. In the Invoice type field select the invoicing policy. The following options are available:
      • None:
        Select this option if you are not going to invoice the customer recurrently, and the elements of the Recurring invoicing area become unavailable.
      • Prepaid:
        Select this option if you want to invoice the customer at the beginning of the scheduled invoicing period.
      • Postpaid:
        Select this option if you want to invoice the customer at the end of the scheduled invoicing period.
   2. In the Recurring item field, select the non-stock item that you want to provide and invoice recurrently.
   3. Select the Reset usage on invoicing check box if you want the contract item usage to be reset after the invoicing for a previous invoicing period has been performed. If this check box is selected, the included quantity is set per invoicing period.
      If this check box is cleared, the included quantity is set for the whole duration of the contract, so clear the check box only if the invoicing period is equal to the contract duration.
   4. In the Recurring pricing field, select the pricing policy. The following options are available:
      • Use item price:
        Select this option if you want to use the base price of the non-stock item.
        If a price is configured for a customer price class and a customer that purchases this service belongs to this price class, then the price from the customer price class is used.
      • Percent of item price:
        Select this option if you want the price to be calculated by applying the percent specified in the Item price/percent field to the base price of the non-stock item.
      • Percent of setup price:
        Select this option if you want the price to be calculated by applying the percent specified in the Item price/percent field to the setup price of the contract item.
      • Enter manually:
        Select this option if you want to specify the price manually in the Item price/percent field.
        Selecting this option means you can not modify the price later in the contract.
   5. (Skip this step if you have selected Use item price in the Recurring pricing field.)
      In the Item price/percent field, type the item price or percent, depending on the pricing policy selected.
   6. In the Extra usage pricing field, select the pricing policy to be applied to the service price if the customer has exceeded the service included quantity.
      The following options are available:
      • Use item price:
        Select this option if you want to use the base price of the non-stock item.
        If a price is configured for a customer price class and a customer that purchases this service belongs to this price class, then the price from the customer price class is used.
      • Percent of item price:
        Select this option if you want the price to be calculated by applying the percent specified in the Item price/percent field to the base price of the non-stock item.
      • Percent of setup price:
        Select this option if you want the price to be calculated by applying the percent specified in the Item price/percent field to the setup price of the contract item.
      • Enter manually:
        Select this option if you want to specify the price manually in the Item price/percent field.
        Selecting this option also allows to modify the price later in the contract.
   7. (Skip this step if you have selected Use item price in the Extra usage pricing field.)
      In the Item price/percent field, type the item price or percent, depending on the pricing policy selected.
   8. Optional: In the Deposit item field, select the deposit contract item you want to tie to the contract item you are configuring.

   The deposit item is used only with contract items that offer service provided recurrently. For details on configuring, see: About retainer contracts.

9. In the window toolbar, click .