Executing Sales Contracts—Exercises

Basic Data Setup

Customer

Purpose: The purpose of this exercise is to show you how to create a customer. Customer is mandatory to award the contract.

Windows:
Customer

  1. Create a customer that should be associated with your contract, if this has not already been done.
  2. Save your changes.

General exercise for Customer Setup

Required Data

Sales Contract

Purpose: The purpose of this exercise is to show you the required data that is used in the exercises below.

For creating a sales contract see the general exercise for Creating Sales Contract

Main Exercise

Purpose: The purpose of these exercises is to show you how to handle a sales contract. This includes negotiating, reviewing, activating and revising a contract.

Windows:
Sales Contract

Getting a Contract Awarded

  1. Open the Sales Contract window and and query for your contract.

Note that the sales contract must be in status Tendered.

  1. Right click, and then click Status and Award.
  2. Enter a value in the Reason ID field. Use List of Values to select from all valid Reason ID's if needed. (The list of values will contain all reason ID's of reason type Won.)
  3. Verify that the correct customer is inserted in Customer ID, otherwise insert the correct customer. Use List of Values to select from all available customers on the contract.
  4. The Award Date will default to the current date. A different date can be entered if needed.
  5. Add additional information into the Note field if needed.
  6. Click OK

Note that the sales contract status changes to Awarded and that information is updated in the Win/Loss tab.

Losing A Contract Bid

  1. Open the Sales Contract window and query for your contract.
  2. Right click, and then click Status and Lost Contract.
  3. Enter the competitor to whom the contract was lost in the Lost To field. Use the List of Values to select from all competitors. (If the competitor cannot be found in the list you can add them in the basic data).
  4. Enter a value in the Reason ID field. Use List of Values to select from valid Reason ID's with the reason type Lost.
  5. Additional information can be entered into the Lost Note field if required.
  6. Click OK to confirm.

Note that the sales contract status changes to Lost and that information is updated in the Win/Loss tab.

Revising a Contract

  1. Open the Sales Contract window and and query for your contract.
  2. Click on Revision tab. Alternatively you can use the Items tab to create a new revision as well.
  3. Right click, and then click Create Revision to open the Create New Contract Revision dialog box .
  4. The new revision number will be created automatically.
  5. Enter a reason identity number in the Reason ID field. Use List of Values to select from Reason ID's that explains why you want to create a new revision.
  6. If required, notes about the revision can be entered in the Revision Note field.
  7. The Audit Trail, Variation Order and Variation Order Comment Required check boxes will display the default settings as defined on the revision on which the new revision is based. If required you can change it here. 
  8. Click OK.

Note: By default the revision number on which the new revision will be based, will be the latest revision, which is not in the Obsolete or Canceled status. You can select a base revision using the List of Values.

Adding Audit Trail Settings

  1. Open the Sales Contract window and query for your contract.
  2. Click the Revision tab and make sure that you have selected the desired revision to change the audit trail settings on, right click and select Audit Trail Settings.

Note that a dialog box Audit Trail Settings with check boxes for Audit Trail, Variation Order and Variation Order Comment will be displayed. By default they will be indicating the current settings. Variation Order and Variation Order Comment cannot be selected if the Audit Trail check box is not selected.

  1. Select or clear the boxes as required.
  2. Click OK to confirm.

Reviewing and Activating a Contract

Reviewing a contract

  1. Open the Sales Contract window or Sales Contracts window and and query for your contract. Note that the contract must be in the Award status and it should have an active revision.
  2. Right click, point to Status and select the Review menu option.
  3. Observe that the status of the contract is changed to Under Review.

Activating a Contract

  1. Open the Sales Contract window or Sales Contracts window and and query for your contract. Note that the contract must be in the Award or Under Review status.
  2. Right click, point to Status and select the Activate menu option to open the Activate Contract dialog box.
  3. If you want to set the contract baseline,  select the Set Contract Baseline check box. When you set the contract baseline, if the contract revision is not frozen, it will automatically be frozen.
  4. Click OK.
  5. Observe that the status of the contract is changed to Activated.

Setting Contract Baseline

  1. Open the Sales Contract window and and query for your contract.

Note that a contract baseline can only be set when contract is in status Awarded, Under Review or Active. The contract baseline is set for a active revision.

  1. Right-click and select Set Contract Baseline
  2. Click Yes to confirm setting the contract baseline for the active revision.

Note that the Contract Baseline is checked in sales contract General tab.

Creating Applications for Payment

Note that IFS/Applications for Payment should be installed.

  1. Open the Sales Contract window and and query for your contract. The contract must be in status Awarded, Under Review, Active or Completed. Right-click and click Create Application.
  2. A new application for payment will be created. The contract information will be copied into it.
  3. Save the record.(F12)

Completing the Contract

  1. Open the Sales Contract window and and query for your contract to be completed.
  2. Right Click, then click Status and select Complete.
  3. Observe the sales contract status changes to Completed.