Last verified with: 10.8.6.0
Overview #
Account contracts allow you to set commitments on usage, services, packages, and/or invoiced amount for a specified term on an account. Contracts can renew automatically, expire, or move into a different renewal contract depending on how they are configured. Termination penalties can also be set up to apply flat-fee charges or charges based on a percentage of the remaining commitments.
Account contracts do not place specific account-packages under a contract, they simply set commitments that need to be met for the specified account. If you want to place individual account-packages under contracts you can do so on the Account / Profile / Packages screen. Account contracts are fully compatible with package contracts and both types can be used on an account simultaneously if desired.
Account contract commitments are evaluated when billing an account. The bill run that is executed when billing the account must have the ‘Run Contract Commitments’ setting enabled in order to evaluate contract commitments.
Account Contracts Panel #
The Account Contracts panel towards the left of this screen allows you to select existing account contracts to view and edit on the Edit Account Contract panel. Actions are also available in this panel which are shown as icons above the Filter text box. The available actions are described below.
Actions #
| Icon | Description |
|---|---|
 | Marks the selected contract to end on a specified termination date. When the contract is terminated before the end of its term, any applicable termination penalties configured on the Termination tab can be applied |
 | Creates a copy of the selected account contract |
 | Deletes the selected account contract if not in use |
 | Adds a new account contract |
 | Cancel Termination: This restore-style action is only shown when the selected contract already has an early termination date on it |
Edit Account Contract Panel #
The information in this panel reflects the currently selected account contract. From here you can change contract details. Account Contract Fields and Options:
- Name: a descriptive name for the contract
- Status: the contract status. This field will show statuses you have set up that are configured for active contract use, for example Pre-Active or Active
- Termination Date: when present, shows the early termination date that has been set on the contract
- Termination Comment: when present, shows the comment entered when the contract was marked for early termination
Terms Tab #
- Term & Unit: allows you to set the contract term length, e.g. 1 year
- Sync Package to Start Date: when this option is enabled, package timing can be synchronized to the contract start date so that the related package behavior aligns with the contract term when applicable
- Start Date: when the contract term begins. This can be a past, present or future date. Past dates cannot go further back in time than the last invoiced period. The Start day must be between 1 and 28.
- End Date: a read-only value that is automatically calculated. This value will equal the contract start date plus the contract term length
- Billing Frequency & Unit: defines the billing cadence used for the contract when billing-frequency-specific contract behavior applies
- Renew Type: controls what happens when the contract reaches the end of its term
- Renewal Contract: appears when the renew type uses a new contract and lets you select the contract that will take effect next
- Renewal Status: appears for renewal scenarios and lets you control the status the renewed contract starts in
- Termination Status: sets the contract termination status. E.g. if you have a termination status called ‘Renewed’ you could set that status when the contract is configured to auto renew. This field is used to indicate how the account contract ended (did it expire and not renew, did it renew, etc.). The termination statuses you see here are custom and dependent on how the system has been configured to suit your tracking and reporting needs
Commitments Tab #
This tab shows any contract commitments configured on the account contract. Commitments can be set up for usage charges, service charges, package charges, or the total invoiced amount. They can be broad, such as applying to all qualifying services on an account, or specific to a particular service, package, or pricing context. The minimum commitment can be set up using a count condition, a charge condition, or a usage condition. Detailed configuration steps are described in the guides below.
Termination Tab #
On this tab you can define termination penalties that apply if the account contract is terminated early. Multiple termination penalties can be set up so the penalty changes depending on how far into the contract term the cancellation occurs. The fields present on the Termination tab are shown below. Additional details on how to add termination penalties are explained later in this article.
- Remainder of Term: when this option is selected, the termination penalty applies for the full remaining length of the contract instead of only for a fixed penalty period. Once a penalty is configured using Remainder of Term, additional termination-penalty ranges are not used because the selected penalty already covers the rest of the contract term
- Transaction Service (for Flat Fees): allows you to type in the service that will be associated with the transaction when flat fee termination charges are applied. Typically you would have a ‘Contract Termination Fee’ or similar service in your product catalog to enter here
- Transaction Description: a brief summary of what the transaction charge is. This will be shown when reviewing transactions on the Account / Billing / Transactions tab
Guides #
Adding Account Contracts #
- In the Account Contracts panel, click the add action
- Enter the contract details on the right side of the screen
Adding Commitments #
- Open the Commitments tab
- Select a Commitment Type and, when applicable, a related usage unit
- Click Add to open the commitment dialog
- Complete the fields required for that commitment, such as transaction service, transaction description, commitment period, minimum commit value, and any unit-specific settings
- Use the commitment type that matches the business rule you need:
- Usage: a commitment based on usage such as data or time
- Service: a commitment tied to services on the account
- Package: a commitment tied to packages on the account
- Invoice Amount: a commitment based on the total invoiced amount
- Add tiers if the commitment should enforce different minimum thresholds
- Click Add to save the commitment
- Repeat the process if you need multiple commitments or multiple commitment periods
Adding Termination Penalties #
- Open the Termination tab
- If you plan to use flat-fee penalties, select the Transaction Service (for Flat Fees)
- Optionally enter a transaction description
- Click the add action in the termination-penalty list
- Configure the penalty period and penalty values
- Use Remainder of Term if the penalty should apply for the entire balance of the contract instead of a fixed range
- Enter a Flat Fee, a % of Remaining Commitments, or both, depending on how the penalty should be calculated
- Click Add to save the penalty
- Add more penalties if your contract requires different rules for different stages of the term
Cloning Account Contracts #
Cloning allows you to quickly create an account contract if you already have one set up on the account with similar settings to what you require. This is particularly useful if an existing contract’s commitments and other settings are identical to what you want but the contract term length or termination penalties need to be adjusted. An example where cloning may be useful is when a multi-year contract needs to be renewed as a monthly term auto-renewing contract. In that instance you would clone the multi-year contract, adjust its term, renewal configuration, and termination penalties if needed, and then set it as the renewal contract in the original contract’s configuration. To clone an account contract do the following:
- Under the Account Contracts heading on the left, select the account contract you wish to clone
- Under the same heading, click the clone action
- On the pop-up that appears, provide a Name, Status, and Start Date for the new contract
- Click Clone
- Modify the cloned contract details as required
- Click Save when you have completed configuration of the cloned contract
Editing Account Contracts #
- Under the Account Contracts heading on the left, click the contract you wish to edit
- Under the Edit Account Contract heading on the right, modify the contract details
- Click Save when finished making changes
Terminating Account Contracts #
- Select the contract you wish to terminate in the list on the left under the Account Contracts heading
- Under the same heading, click the early-termination action
- On the Terminate Contract pop-up, specify the Termination Date and Termination Status
- Optionally, enter a comment indicating why the account contract was terminated
- Click Add
Deleting Account Contracts #
- Select the contract you wish to delete in the list on the left under the Account Contracts heading
- Under the Account Contracts heading, click the delete action
- On the confirmation dialog, click Yes to confirm that the selected contract should be deleted