Summary
In this example, we will set up an account contract on an account and bill a package in order to trigger contract commitment charges. We will also cancel the account in order to apply contract termination fees.
For additional details on the fields presented on the account contract screen see the account contacts screen help.
Prerequisites
For package commitments to be applied an account package must be added to an account. See the account package configuration example for instructions on how to add an account package to an account
For fees to be configured on a contract you must have services setup as ‘Service Type’ ‘Fee’. See the service type configuration example for instructions
Sample Configuration
Adding a Contract to an Account
Log into LogiSense Billing
Create a new account or select an existing one
Go to the Account / Profile / Contracts screen
On the right side of the Account Contracts heading, click the Add Account Contract icon
The Add Account Contract panel will load, enter the account contract details (name, Status)
On the Terms tab, enter the Term details (Term, Unit, Start Date, how the contract renews and what contract status it will switch to when it is canceled). In this example we will create a two year contract which starts on Nov 1st and expires at the end of the two year period
Click Save to add the account contract
Adding a Commitment to Account Contract
Load the account that contains the contract
Go to the Account / Profile / Contracts screen
Select an existing account contract and click on the Commitments tab
Under the Commitment Type field, select Package
Click the right side Add icon
On the pop-up Add Commitment window, enter the Commitment details (Penalty Service, Commitment Period, Commitments. etc.). In the configuration below the contract is set to a minimum commitment of $100 worth of account-package charges per month for the first 6 months of the contract. After six months no commitments will apply
Click Add to add the commitment
Click Save to save the commitment to the account contract
Adding a Termination Fee to the Account Contract
Load the account that contains the contract
Go to the Account / Profile / Contracts screen
Select an existing account contract and click on the Termination tab
On the Termination Tab select the Transaction Service and optionally enter a Transaction Description
Click the Add Termination Penalty action button on the right to add the Early Termination Penalties
On the pop-up Add Termination Penalty window, enter the Early Termination Penalties details (Frequency, Period, Flat Fee. etc.). In the image shown below early contact termination fees will apply if the contract is canceled within the first six months of the contract period. A flat fee of $20 will be charged per each month that is applicable (e.g. if the contract is canceled in November then a $20 fee will be applied to the account in November and each month thereafter until May is reached and the early termination period has passed). In this configuration the maximum total termination penalty that is applicable is $120.
Click Add to add the termination penalty
Click Save to save the termination penalty to the account contract
Result
Contract Commitment Fees
Contract fees will only be applied during billing if the Bill Run setting ‘Run Contract Commitments’ is enabled
When billing an account the contract commitment will apply if the account-package charges do not meet the $100 a month commitment.
Below a contract commitment transaction is shown on an invoice which indicates the charge amount applied to meet the commitment. In this case package charges for the month totaled only $30.00, resulting in a contract commitment charge of $70.00 being applied to meet the $100.00 commitment configured on the contract.
Termination Fees
When a contract is canceled the and termination fees are applicable those fees will be applied during billing.
In the image below an Early Termination Penalty of $20.00 is shown in the list of transactions applied to the invoice. These fees will persist as billing is performed until the termination penalty period configured is completed.
Next Steps
<<documentation team task: link to next configuration article>>
Related Guides
<<documentation team task: link to API guide which covers the same config process>>
<<documentation team task: link to Data Import guide which covers the same config process>>