This chapter contains these topics:
You set up master information for a contract to specify:
Identification information, such as the contract number, owner (customer), and related job or project
Payment terms that can affect the contract as a whole, such as when payment is due, discount terms, and whether retainage is applicable
Billing limits, such as a minimum amount and a cap on the total billing
Whether your company must pay for all goods and services before you can bill the customer
Additional details, such as the location of the job or project, the names and addresses of people involved in the contract, and start and completion dates
The billing information for a contract consists of billing lines. Billing lines define the billing terms of a contract. You must set up the billing lines for a contract before you can create invoices based on the contract.
The original draft of a contract is referred to as the base contract. The base contract represents the original contract information. A base contract includes master information and billing information (billing lines).
As the job progresses, you and your customer might agree to revise the billing information for the contract. To maintain the integrity of the base contract, you create an addendum for each revision you make to the base contract. Each addendum is referred to as a change order.
Change orders include any additional work that your customer, the owner of the job, requests that is not included in the base contract. A change order includes one or more billing lines that define the new billing terms for the additional work.
To help track each addendum to a base contract, the system always assign the base contract change order number 000. You can assign each additional change order a number, such as 001, 002, and so on.