Getting Started with Automated Contract Price Management
- Sue Michael (Unlicensed)
Getting set up for Automated Contract Price Management.
- From the Navigation panel click Administration then Action Rules
First this you will need to do is Enable the Action Rule "Managed Contract Draft Updated" so that users receive a notification when a new contract has been generated for review.
Please Note
An Action rule will not generate for an Automated Contract Price if the customer does not have a Primary Sales Person on the card.
- From the Navigation panel click Administration, Advanced and then Tasks
- Location task called Contract Management and click Enabled and then save.
Setting up contracts for Automated Contract Price
- From the Navigation panel click Relationships then Contract
Search for the contract and Click New Version
If you require a change to all the lines on the contract click CTRL A from your keyboard and then click Set Price Management Rules
Fill in the required fields on the Set Price Management screen and click ok.
- “Auto Review Months” ranging from blank to any number of months. For example 12 for review every 12 months. Being the number of months between each automatic contract price management review cycles for that product contract.
- “Maximum Inactivity Months” Being the maximum number of inactivity months that can pass for the contract price product before it will be suggested for removal from the contract by the automatic contract price management. Each time the contract product is used on a sale. The contract product last used date (read only) resets. If the contract price product has been unused for too many months. The next contract review will add that contract product to the contract review run and suggest the contract product be deactivated. There will be an read only automatically deactivated checkbox on contract products used by the system. This will keep a better audit trail than if the system automatically deleted contract price products.
- "Maintain GP%" checkbox. If this property is set. The system will adjust prices up at each contract price management cycle if the GP percentage of the contract product as been ordered since the last contract price management cycle.
- "Auto Increase Price %”. Being the percentage by which the price will be suggested for increase by the next automatic contract price management cycle.
- “Min Cost increase %". If this percentage is specified. The system checks to see if the cost has increased by at least this minimum percentage since the last automatic contract price management cycle. If the cost has not increased. The last contract price management message is updated and the new suggested value of the contract price product will remain unchanged.
- "Maximum GP% Erosion" and "Maximum GP% Erosion Weeks". If the GP percent of a contract product erodes more than the "maximum GP percent erosion" and the loss in GP stays below that maximum allowed reduction for more than the specified number of weeks. An additional contract price management adjustment will be suggested for that product contract. The reason for adjustment message on the contract price management run line will indicate the reason for the additional corrective price adjustment.
Please note you can not have Maintain GP%, Auto Increase Price %, Min Cost increase %, Maximum GP% Erosion and Maximum GP% Erosion Weeks all filled in. You will have to select only either one option for the contracts.
- “Auto Review Months” ranging from blank to any number of months. For example 12 for review every 12 months. Being the number of months between each automatic contract price management review cycles for that product contract.
Once the contract is set up the task Contract Management will generate a new contract based on the requirements and an email will be deployed to Required users that are set in the Action Rules. The task will also fill in the Activation Date field in on the contract with the date the contract will activated.
A new version is always generated based on the rules set on the price management regardless of any changes being made or not to the contract. The task "Contract Management" generates a contract based on the start date of the contract and the auto review months on the "Price Management"