Example 3: Invoicing customers yearly

Prolong contracts for twelve months

To prolong the contract for more than twelve months there are two options available:

Option A: The parameters settings can be set to prolong based on months
Option B: The parameters settings can be set to prolong based on year

Option A

Step 1: Parameters settings

Contract parameters can be changed or created in menu [CRM, Maintenance, Contract, Parameter] or in [CRM, Reports, Contracts: Prolongation, Parameter]

• The field 'Prolongation' in section 'Settings' is set to 'Current price'. However it can be set to 'Current value' as well.
• Field 'Frequency' is set on 'Monthly'.
• The field 'Period' is set on '12' however this can be any number 

Using these settings the contract will be prolonged for twelve months.

Step 2: Contract settings

The dates in the contract determines when the contract will be prolonged.

• Create contract and  'Start date' on '01-11-2005'
• Set 'Date: Prolongation' on '01-11-2005'. This field indicates that the months before this date has been prolonged already.
• The minimum prolongation date is automatically filled. This fields will take over the prolongation date of contract item when this date is before the prolongation date of the contract header. The next prolongation run that item will be prolonged those number months till the prolongation date is the same as in the contract header.

• Add a contract service item to the contract.
• Set 'Start date' on '01-11-2005'
• Set 'Date: Prolongation' on '01-11-2005'
• Save the contract item

Step 3: Prolongation process settings

The prolongation process settings determines the month the prolongation will be run. This can be a month earlier this year like January, a month somewhere in the future or the current month. Prolongation process settings can be found in  [CRM, Maintenance, Contract, Processes] or in [CRM, Reports, Contracts: Prolongation, Processes].

• Set 'Start date' on '01-11-2005'
• Set 'End date' on '30-11-2005'
• Set 'Mode' on 'Preview' for a calculation example or to 'Export' to prolong the contracts

Step 4: Run background job 'BLProcess'

This step will calculate and/or prolong the contracts. See document 'Setting up: Prolongation of contracts' for more information about this subject. When option 'Preview' is used the next document is created. This document also includes an HTML attachment in which a complete overview is given about the prolonged contracts:

The document tells that the contract value is calculated based on 'Current price' and is renewed for four month.

In case the option 'Export' is used the same document is created but instead of an HTML file is attached to the document an XML file is attached which can be imported in Exact Globe 2003 or Macola ES. When option 'Export' is used the contract prolongation date has been increased for one month.

Option B

Instead of using the parameters to calculate the contracts based on 'Monthly' it is also possible to set the parameters to calculate the contracts based on 'Years'.

When going through the same steps as described above the prolongation will create the next document.

As the document shows the contract is prolonged for one year. The contract prolongation date has been updated to '01-11-2006'.

Conclusion

• The customer is being invoiced for twelve months for 30 euros.
• There is no difference between the method explained in options A and B. However there are some situations that the parameters will have impact on the contract calculations.

Related Topics

• Setting up: Prolongation of contracts
• Setting up: Invoicing accounts using Exact Globe 200x
• Creating accounts