Summary
This article describes the configuration and use of Contracts in EngageIP in relation to accounts and packages.
...
In the AdminPortal load the Setup tab
Select the Packages option
Click on the name of the package you wish to add the contract component to
Under the Components section click the Add button
Select the Contract option from the pop-up menu and populate the contract details (required fields are in red)
Term - this is a unit of time which works in conjunction with the Base Time Unit Type below. For example, if you are setting up a 3 year contract you would enter the number 3 in this field and select Year in the Base Time Unit Type field
Base Time Unit Type - this is the quantity of time that works with the Term value (e.g. 'Year', 'Month')”
Penalty - this is the amount to charge the account if the package is canceled before the term period specified above is reached
. Note: enter '0' if you do not want to apply a penalty. An empty field is not validCharge Remainder - if selected, the account will be charged the remaining amount owing to fulfill the contract upon early cancelation. For example, if a customer cancels with 6 months left in their contract period a charge will be added to their account for the amount of the remaining 6 months
Transaction Penalty Service - this is the service that we will tag the transaction with for GL code purposes and taxing purposes
Click the Save button
Adding a Contract to a User-Package
...
Load the appropriate customer account
On the Overview tab click on the name of the package you wish to add the contract to in the packages section, or alternatively click on the Packages tab and then click the appropriate package
On the user-package edit page under the Components section click the Add button and then select Contract from the components listing
Complete the fields as outlined in the section above
Specify the Start Date for when the Contract will take effect
Click the Save button
...
In the sample case above, the contract term is three months. If the user-package is canceled prior to meeting the contract term (April 1st) the amount for the remainder of the contract period will be charged along with a $50.00 penalty fee for early cancelation.
Account Level Contracts
...
The 'User Contract' component allows multiple user-packages on an account to be tied to a single contract.
...
In the AdminPortal load the proper customer account
On the Overview tab under the Components heading click Add then User Contract
On the Add User Contract page populate the fields shown below (required fields are in red)
Term - this is a unit of time which works in conjunction with the Base Time Unit Type below. For example, if you are setting up a three year contract you would enter the number 3 in this field and select Year in the Base Time Unit Type field
Base Time Unit Type - this is the quantity of time that works with the Term value
Penalty Amount - this is the amount charged if a package connected to the User Contract is canceled before the contract end date is reached and the total monthly recurring charge of the remaining active packages under the User Contract do not meet or exceed the Threshold value (see the Threshold notes below). The Penalty Amount will only be charged once, it will not be charged if subsequent packages under the User Contract are canceled before the end of the contract term. If you do not want to apply any penalty fee for early cancelation then leave this field value as zero (an empty value in this field is not valid). For more information on how fees are applied see the Canceling Contracts section below
Penalty Service - this is the service you wish to associate with the transaction for GL code and taxing purposes
This date indicates when the current contract term started. If the User Contract is set to renew this date will be updated to reflect the start date of the new term at the time the renewal is triggered. Once this value is set and saved this value cannot be changed, if you need to set a different Start date for the contract you will need to delete and re-add the User Contract component on the User
Initial Start Date - this date is automatically populated and indicates when the contract was initially started. Once set this value is static and will not change
End Date - this date is automatically populated based upon the 'Start Date' and the 'Term' length of the User Contract. If the contract is set to be renewed this date will be updated to indicate the new end date of the contract when the renewal is triggered
Charge Remainder - this setting determines if the account will be charged the remaining amount owed when a package under the User Contract is canceled before the contract term is up and the total monthly recurring charge of the remaining active packages under the User Contract do not meet or exceed the Threshold value (see notes on Threshold below). For example if the contract term has four months remaining when a package under the contract is canceled and the Threshold value is not met/exceeded then the account will be charged a 'Contract Remainder' amounting to the canceled package price over four months. For more information on how early cancelation charges are applied see the Canceling Contracts section below
Threshold - NOTE: the Threshold amount must be
...
greater than the total MRC charges
...
applied, otherwise no charges will apply.This value determines if cancelation charges will apply based on the total monthly recurring
...
charges of the active packages associated with the User Contract. For instance if the Threshold value is set at $100 and the active packages connected to the User Contract are priced at $40/mth and $70/mth ($110 total MRC) then the Threshold has been met and the 'Penalty Amount' and/or 'Charge Remainder' set on the contract will not be applied. To never apply fees on User Contract cancelation leave this value at $0
...
. To always apply early cancelation fees set this value to a MRC that will never be reached (e.g. $99999999)
Auto Renewable - this setting will cause the contract to renew for another term when the End Date is reached (as of 11:59:59 on the End Date). The 'Renewal Term' and 'Renewal Base Time Unit Type' fields must be set for auto-
...
renewal for this feature to function. The User Contract will auto-renew indefinitely until the Auto Renewable option is unchecked or the User Contract component is deleted from the Account. The contract component added upon renewal will be updated
...
to have a new renewal date according to the renewal term and type configured
...
Renewal Term - this unit of time works with the Renewal Base Time Unit Type to determine how long to renew the User Contract Term for (Term: 1, Renewal Base Time Unit Type: Year = Renew the contract for one year)
Renewal Base Time Unit Type - set this value to sync with the Renewal Term in order to define the Renewal term length
User Contract Status - If set to a status of type "Active" then fees will be applied upon package/account cancelation. If set to another status (of type Canceled, Suspended or Prospect) fees will not be applied if a package under the contract is canceled or the user account is canceled. To add contract statuses load the Setup tab and select 'User Contract Status'
Invoice Minimum Amount - this permits a minimum charge to be applied when the account is invoiced, for example if this value is set to $100 and monthly invoice (non-prorated) charges total $80, then a charge will appear on the invoice adding $20 to increase the invoiced amount to $100. The monthly invoice totals do not include prorated charges, only full-period charges will be calculated against the Invoice Minimum Amount. If the contract expires but remains as a component on the account then the contract will function on a month to month basis, i.e. the Invoice Minimum Amount will continue to be applied after contract cancelation unless the User Contract is switched to a deactivated/suspended/prospect Contract Status, the Invoice Minimum Amount value is switched to $0 or the User Contract Component is deleted from the account
Invoice Minimum Amount Service - this is the service you wish to associate with the transaction for GL code and taxing purposes
Charge Description - this allows you to define what the Invoice Minimum Charge is listed as on the invoice. If populated the invoice will display the text and the user contract number. If left empty the invoice will display "Minimum Invoice Charge Adjustment - User Contract #xx"
4. Click Save
Associating Packages with the User Contract
| Info |
|---|
Note: only active user-packages can be connected to a user contract. User-packages in prospect, canceled or suspended status cannot be connected to a user contract |
Once the user contract has been added to the account you will be able to connect active packages to it. To do this follow the steps below:
...
Upgrading a package involves configuring packages to be upgradable using the Upgrade component. Without the Upgrade component one package cannot be upgraded to another package. See the article Package Upgrade Configuration for more information.
Package Level Contracts
...
On the Overview tab under Components click on the User Contract to edit it
Capture all of the contract details including the packages connected to it
Return to the Overview tab and click Delete to the right of the User Contract
Upgrade the package. See the Upgrading a Package guide if you are unfamiliar with this process
On the Overview tab under the Components heading click Add then User Contract
Populate the contract details based on the information you captured earlier
Note: depending on your internal business procedures the contract start period may need to be set to the current date at this pointAssociate the new User Contract with the upgraded package and all other packaged that should be bound to it
...
Canceling a contract and applying any applicable fees (Penalty Fee and Charge Remainder) is fairly straight forward. Simply follow the standard package cancelation process outlined here: Managing Packages – Adding / Updating / Canceling). For more information on how fees are applied during cancellation continue reading this article.
| Info |
|---|
Note: If you cancel a package that is tied to a user contract using the option Immediately With No Transaction then contract transactions (Penalty Fee and Charge Remainder as described above) will still be charged (assuming all of the criteria are met for applying the fees, see below for details on how user contract fees are applied) |
How User Contract Fees are Determined
...
If you need to reverse the fees you may do so after canceling the package, see the article: Managing Transactions (Debits, Credits , Refunds, Void / Voiding Invoices On Accountsand Refunds) for instructions.
Preventing Fees From Being Applied
...
Load the proper customer account
...
Click on the package name from the Overview tab or the Packages tab
...
Under the Components heading locate the Contract component
...
If you wish to delete the contract simply click the Delete link to the right
Note: If you need to match the contract configuration on a new package (package upgrade) or
...
new User Contract capture the contract details (particularly the Start and End Dates) before you
delete the existing contract component
...
If you wish to leave the contract in place (to be canceled normally) but avoid charging penalty
...
fees
...
Click the Contract link to edit the contract details
For user contacts you can simply set the threshold value to $0 to ensure no fees are applied, or
...
alternatively adjust the penalty and charge remainder options as listed below
Package or User Contracts: Set the Penalty to $0 to charge no penalty fee is applicable
Package or User Contracts: Uncheck Charge Remainder to charge no residual fee upon
...
package cancelation
Click Save