Working with Arrangements and Contracts

This chapter provides an overview of arrangements and contracts and discusses how to:

• Set up and maintain arrangements.

• Set up and maintain contracts.

• Set up and align attribute definitions for products, arrangements, contracts, and the sales process.

Understanding Arrangements and Contracts

This section discusses:

• Arrangements.

• Contracts.

• Contract retrieval.

• Terms and conditions retrieval.

Arrangements

An arrangement is associated with one and only one product or product package. A product or product package can be associated with zero, one, or more arrangements.

An arrangement has a set of terms and conditions in addition to the following three fields:

• Raise %

• Reduction %

• Waive contract fee flag

Note. Other terms and conditions can be defined by the system administrator using configurable attribute definitions.

Contracts

Contracts are available only to organizational customers. An organization can be a company, a partnership, or an alternate capacity.

A contract is an association between the following two parts:

• One and only one organization

• One and only one product, product package, or arrangement

A contract has a set of terms and conditions in addition to the following three fields:

• Raise %

• Reduction %

• Waive contract fee flag

Note. Additional terms and conditions can be defined on a contract. PeopleSoft enables system administrators to define terms and conditions for a certain type of object to fit their organization by using configurable attribute definitions.

The availability of a contract is controlled by start date and end date. In implementation, the system sets the default end date to December 31, 2099.

A contract is an entity different from a commercial product. It is possible that a product, product package, or arrangement is not associated with a contract. A contract is tied to an organization whereas an arrangement is not.

A contract is an entity different from an account. A contract is an agreement about an unsold product between the bank and an organization. An account is an agreement about a sold product between the bank and a customer.

It is possible for a product, a product package, or an arrangement to be associated with multiple contracts for an organization. These contracts may have overlaps on valid periods, which are defined by start date and end date.

If there are multiple contracts valid for a product and organization for a certain period of time, the sales process uses the newest contract featured by a later start date.

For example:

• P001 is ATM Checking product.

• P006 is an arrangement based on the product P001.

• C001 is a contract based on P006 for ADC Company valid between February 1, 2002 and March 31, 2002.

If the user tries to create a new contract, C002 for ADC Company based on P00—ATM Checking, valid between February 15, 2002 and March 31,2002, it is allowed. The system displays a message reminding the user about the existence of the multiple contracts for ADC Company on P001.

For the period between February 1, 2002 and February 14, 2002, C001 is the only valid contract based on P001. In the order capture process, when a customer selects P001, the system uses C001, which is the only contract valid during this period, to determine the terms and conditions.

For the period between February 15, 2002 and March 31, 2002, there are two valid contracts based on P00—C001 and C002. In the sales process, if a customer selects P001, the system uses C002, which is the newest contract among the contracts that are valid during this period, to determine the terms and conditions.

Contract Retrieval

During an agent-controlled sale to the contact of an organization, the system retrieves any available contract after the customer selects the product.

Agents can retrieve an available contract after verifying employment information. The employment information is verified by the agent using the verification key provided by the customer or by checking supporting documents.

The customer can choose to apply for the product with or without using the retrieved contract.

Note. Self-service users cannot retrieve an available contract and apply for a product using a contract.

Terms and Conditions Retrieval

When a customer selects a product or package during the sales process, a complete set of terms and conditions for the product or product package is retrieved:

• A complete set of terms and conditions is retrieved from the terms and conditions defined for product, product package, arrangement, or contract.

• The terms and conditions in an arrangement for a product or product package are retrieved only when the following two conditions are satisfied:

  • The customer’s organization has a contract on that arrangement.

  • The system selects the newest contract (because of its later start date) from the multiple contracts that refer to the same product or product package.

• The terms and conditions defined in later entries override the terms and conditions defined in previous entries.

For example, P001 is ATM Checking, P006 is an arrangement for P001, and C001 is a contract for ADC Company and P006. An employee of ADC Company selects ATM Checking (P001) during the sales process and is interested in applying for an ATM checking account.

The terms and conditions defined in these entries are:

1. The sales process gets terms and conditions from P001—ATM Checking:

   P001

   TermA = 1

   TermB = 2

   TermC = 3

   TermD = 4

2. Because this organization has a contract C001 on an arrangement P006 for this product P001, the system gets the terms and conditions from the arrangement P006 to override terms and conditions obtained from product P001:

   P001	TermA = 1	TermB = 2	TermC = 3	TermD = 4
   P006	TermA = 1	TermB = 6	TermC = 8	TermD = 4	TermE = 9

   Terms B and C are overridden in this step. Term D is expanded in this step.

3. Finally, the system obtains terms and conditions from contract C001.

   These are the terms and conditions that appear during the sales process:

   P001	TermA = 1	TermB = 2	TermC = 3	TermD = 4
   P006	TermA = 1	TermB = 6	TermC = 8	TermD = 4	TermE = 9
   C001	TermA = 12	TermB = 6	TermC = 15	TermD = 4	TermE = 9	TermF = 18

   Terms A and C are overridden in this step. Term F is expanded in this step.

Alignment of Attribute Definitions for Products, Arrangements, Contracts, and the Sales Process

To make product definition, arrangement definition, contract definition, and the sales process work together correctly, it is important to set up attribute definitions for these objects correctly.

To set up and align attribute definitions for products, arrangements, contracts, and the sales process:

1. Set up attribute definitions for products.

   The Object Type for products is Product.

2. Set up and align attribute definitions for arrangements.

   The Object Type for arrangements is also Product. The attribute set defined for arrangements must include the attribute set for products. Additional attributes other than those defined for products, specifically for arrangements, can be defined by providing certain conditions. Any attributes specific to arrangements but not controlled by Attribute Category values are internal arrangement attributes, not displayed during the sales process.

3. Set up and align attribute definitions for contracts.

   The Object Type for contracts is Contract. The attribute set defined for contracts must include the attribute set for products and the external attribute set for arrangements. Any attributes specific to contracts but not controlled by Attribute Category values are internal contract attributes, not displayed in the sales process.

4. Set up and align attribute definitions for the sales process.

   The Object Type for the sales process is Sales Product Application. The attribute set defined for the sales process must include the attribute set for products and the external attribute set for arrangements and contracts.

Setting Up and Maintaining Arrangements

This section discusses how to:

• Set up arrangements.

• View attributes.

• View arrangement contracts.

Note. An arrangement is defined in the same component where a product is defined. However, only the values defined on the Product Definition page, the Attributes page, and the Contracts page pertain to arrangements.

See Also

Working with Products in Financial Services and Insurance

Pages Used to Set Up and Maintain Arrangements

Setting Up Arrangements

Access the Product Definition page (Products CRM, Product Definition, Product Definition).

Use the fields in the Product Type group box to define the product arrangement.

Product Details

Product Type

Arrangement

See Also

Working with Products in Financial Services and Insurance

Viewing Attributes

Access the Product Definition - Attributes page (Products CRM, Product Definition, Attributes).

Attributes are selected by the Attribute category selected on the Product Definition page. The Remark attribute is not controlled by the Attribute category; it appears for all arrangements. Data entered in the Remark field is only visible internally and does not appear during the sales process.

Viewing Arrangement Contracts

Access the Product Definition - Contracts page (Products CRM, Product Definition, Contracts).

The system displays the contracts that have been associated with the arrangement. Click the transfer button in the contract row to access the Contracts component, where you can view and update the record.

Setting Up and Maintaining Contracts

You can set up contracts using individual products, product packages, or product arrangements.

This section discusses how to:

• Set up contracts.

• View contract attributes.

Pages Used to Set Up and Maintain Contracts

Setting Up Contracts

Access the Contract - Contract page (Customer Contracts CRM, Product/Arrangement Contracts, Contract).

Contract Name	Enter a name for the contract. A contract can be associated with a product, a product package, or an arrangement.
Product	Enter the name of the product. If the product is an arrangement, the system displays the related product. You can access the Product component to view product details.
Start Date and End Date	Enter the start and end dates for the contract.
Attribute Category	The system automatically populates this field with the attribute category for the related product. This ensures that the attribute defined for the contract aligns with the attributes defined for the related product.
Waive Contract Fee	Select to waive the contract fee.
Raise %	Enter the percentage of rate increase, if applicable. If this contract is based on an arrangement, this field displays the value set for the arrangement.
Reduction %	Enter the percentage of rate decrease, if applicable. If this contract is based on an arrangement, this field displays the value set for the arrangement.
This related product is an arrangement on	If the contract is based on an arrangement, the system displays the name of the arrangement. Click the transfer button to view product details.

Note. If a contract definition is based on an arrangement, the Contract Raise %, Contract Reduction %, and Waive Contract Fee fields are populated with values defined for the arrangement. If the customer applies for a product based on an available contract, these values are obtained only from the contract, not from the arrangement.

Viewing Contract Attributes

Access the Product/Arrangement Contracts - Attributes page (Customer Contracts CRM, Product/Arrangement Contracts, Attributes).

The system displays the attribute categories applicable to the contract. In this example, the Remark attribute is not controlled by the attribute categories; it appears for all contracts. Data entered in the Remark field is only visible internally and does not appear during the sales process.

See Also

Configuring Attributes