Account Contract Example

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

• Account contract status types need to be setup in order to configure the statuses that an account contract starts in, renews to, and changes to when cancelled. See the account contract status types configuration example article for a sample configuration

Sample Configuration

Adding a Contract to an Account

1. Log into LogiSense Billing

2. Create a new account or select an existing one

3. Go to the Account / Profile / Contracts screen

4. On the right side of the Account Contracts heading, click the Add Account Contract icon

   Open

   

    

5. The Add Account Contract panel will load, enter a Name for the account contract and select a Status

   Open

   

    

6. 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 without renewing

    

7. Click Save to add the account contract

Adding a Commitment to Account Contract

1. Load the account that contains the contract

2. Go to the Account / Profile / Contracts screen

3. Select an existing account contract and click on the Commitments tab

4. Under the Commitment Type field, select Package

    

5. Click the +Add button to add the commitment type and a pop-up modal will load

6. On the Add Commitment modal 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 charges will apply

    

7. Click Add to add the commitment

8. Click Save to save the commitment to the account contract

Adding a Termination Fee to the Account Contract

1. Load the account that contains the contract

2. Go to the Account / Profile / Contracts screen

3. Select an existing account contract and click on the Termination tab

4. On the Termination Tab select the Transaction Service and optionally enter a Transaction Description

5. Click the Add Termination Penalty action button on the right to add the Early Termination Penalties
   
   

    

6. On the pop-up Add Termination Penalty window, enter the Early Termination Penalties details (Frequency, Period, Flat Fee. etc.). In the image shown below an early contact termination fee of $20 has been setup to be applied if the contract is canceled within the first six months of the contract period

    

7. Click Add to add the termination penalty

8. Click Save to save the termination penalty to the account contract

Result

Contract Commitment Fees

When billing an account the contract commitment will apply if the account-package charges do not meet the $100 a month commitment per the configuration shown in this article above.

The image below shows a contract commitment transaction applied to an invoice. In this case package charges for the month only totaled $30.00, resulting in a contract commitment charge of $70.00 being applied to meet the $100.00 commitment configured on the contract.

Contract Termination Fees

When a contract is canceled 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.