Package Contract Configuration Example

Summary

This example covers the process of creating a package contract in the product catalog and adding the contract to a package frequency. This sample contract will be setup with a six month commitment period, a penalty fee for early cancellation and a ‘charge remainder’ configuration to apply outstanding monthly recurring charges upon early termination of the contract.

For additional details on the fields presented on the product catalog / contracts screen see the Contracts screen help.

Prerequisites

• A service must be setup in product catalog with a service type of ‘Fee’ in order to configure early cancellation penalty charges on the contract

Sample Configuration

Creating a New Package Contract

1. Log into the LogiSense Billing application

2. Click on the Setup menu then on Product Catalog and then Contract

   

3. The Contract screen will load. Click on the button to a new package contract

   

4. Configure the package contract term and early termination charges. In this case the contract term is 6 months with early termination charges configured to be applied to accounts that are billed in Canadian or U.S. currency. ‘Charge Remainder’ is also enabled so that the full charges for the six month period will be applied should the contract be cancelled prior to the six month term being reached

   

5. Click Save to create the package contract

Adding the Package Contract to a Package Frequency

1. Click on the Setup menu then on Product Catalog and then Package

   

2. Locate the package you wish to add the package contract to and then select the Package frequency sub element (in this case ‘Package A Monthly’). On the package frequency select the package contract in the Contract field

   

3. Click Save and the package frequency will now be configured to add the package contract when the package frequency is added to an account

Result

When the monthly version of this package is added to an account, the six month contract term will become effective. In the event, that package is cancelled before completion of the term, the system will apply a termination fee and charge the remainder of the recurring charges owed for the six month period.

For example:

• The monthly package under contract is added to account with an effective date of Dec 1st

• The account-package is canceled as of Jan 7th

• On next account billing:

  • A penalty fee will be charged as per package contract configuration ($100 USD Contract Termination Fee shown below)

  • Transactions will also be added for remaining recurring charges until the contracts termination date (these charges are shown in the image below at $100 per each remaining month of the package contract term)

Selecting a transaction in the list will provide more details, for instance the period that the charge is applicable to. In the image below a $100 charge for Service 1 was applied for the period starting May 1st and ending on May 31st. In relation to the scenario above this would be the ‘charge remainder’ transaction relating to the final month of the contract.