Adding a Contract

Each contract must be associated to a premises. The occupancy type set for the head premises or the sub-premises determines the contract type.

To add a contract:

1. Use one of the following options to create the contract:
   • From the Contracts summary page:
     1. Click Main Menu > Contracts.
     2. In the summary page menu at the top of the page, click .
   • From an existing premises:
     1. Click Main Menu > Premises and open the premises to which you would like to attach a contract.
     2. Click Create Contract.
2. If the Premises field is not already set, select the one that the contract is attached to.
3. In Create Contract From, select whether you would like to create a blank contract or based on a contract template.
4. If the Hide Tabs option is enabled in Admin, optionally click the Show all fields switch to show all optional fields.
5. Enter the required contract identification information. Note the following:
   • File Number: Enter a file number to identify this contract.
   • Type: The available contract type depends on the premises occupancy.
   • State: Select a state for the new contract. This field is configurable in Admin > Picklist Management > Contract State.
   • Category: Select a category such as Contract, Monthly Contract, or Seasonal. Note that the category is only for reporting or informational purposes.
   • Date From and Date To: Select the start and end dates of the contract.
   • Optionally select the Calculate Taxes checkbox if you would like to calculate taxes for your terms. Note that this feature is currently only supported for connected systems.
   • Optionally, select the Automatic Month-to-Month Transition checkbox to have the application automatically create a new contract version after the original contract's end date. Contract versions are continuously created for each subsequent month-to-month period so long as the checkbox remains enabled. All postings must be posted before a contract version can be created.

     Note: Note that month-to-month default values for the new contract version must be configured in the admin section.

   • If provisioning is enabled and configured for the associated legal entity in Financial Organization Structure:
     • Select the Provisioning checkbox to keep track of balances under the main accounting standard. The provision account keeps accruing balances on certain dates based on payment amounts, which are then reversed by the actual payment amount on the payment date. Payments and accrual postings can be done from batches.
     • If the Provisioning checkbox is selected, set the Provisioning Frequency:
       • Straight Line (default value): The Payment Amount is summed up for the entire contract and is spread over the duration of the whole contract (i.e., the monthly provisioning expense is an average of all payments).
       • Periodic: The Payment Amount is divided across the period defined by the Payment Frequency. For example, if the Payment Amount is 1500 in arrears and the Payment Frequency is quarterly on March 31, then the amount is spread out over three months, 500 per month for January, February, and March.
   • The Indexations section allows you to define indexation fields separately for lease and non-lease terms:
     • Indexation Type (Lease) and Indexation Type (Non-Lease): Set these fields to determine the CPI type for indexation for lease and non-lease terms:
       • None: The term does not use CPI Indexation rates.
       • CPI Local: The indexation values (CPI) are defined manually by the user by setting the Current Index Level.
       • CPI Global: The Current Index Level field is set according to the set CPI Global Category and the Reference Date.
     • Conditional indexation allows you to set limits on CPI rate changes. To enable conditional indexation, click the Conditional Indexation checkbox. The following fields are shown:
       • The Applicable Current Index Level (Lease)and Applicable Current Index Level (Non-lease) fields are automatically set to the values defined in the Current Index Level (Lease) and Current Index Level (Non-lease) fields, respectively.
       • If required, enable the Minimum Percentage Change field to set the minimum percentage the Applicable Current Index Level can be increased by (relative to its latest value). This value can be modified in an indexation plan if needed.
       • If required, enable the Maximum Percentage Change field to set the maximum percentage the Applicable Current Index Level can be increased by (relative to its latest value). This value can be modified in an indexation plan if needed.
     • After the contract is created and is still in Draft status, you can set the Maximum Date To. This date cannot be greater than the latest end date of a critical clause or the contract end date, whichever is greater.
6. Add notes, if required.
7. Click Save.