Creating Contract Discount Terms
To create a discounted contract:
- Create a Work Breakdown.
See Enter Work Breakdown for how to enter a Work Breakdown (WB) during project setup.
The Work Breakdown must have at least two line items before you create or import a new subcontract on the system to prevent auto-completion of subcontracts.
- Create a new subcontract. See topic Creating Subcontracts Manually.
- Access the Edit Contract dialog box from the Subcontract List page or the Contract Maintenance page.
- From the Subcontract List page, select the Action icon and select Edit Settings.
- From the Contract Maintenance page, select Edit Settings button.Select the Rate Type.
- Fixed Rate: Discount terms are locked when the contract is accepted by a Subcontractor with this rate type.
- Variable Rate: Head Contractors can change the discount terms on contracts with this rate type.
- Select the Terms.
- Enter the discount rate (%)
- Enter the number of days prior to the trigger date the Subcontractor must bill to receive a discount
- Claim Date
- Beginning of Next Month.
Choose the trigger date (the event that triggers the discount)
For example: 5/10 net 30 would be entered as a Cash discount of 5% applies if paid within 10 days from Claim Date.Note: Discount rates and terms are editable until the Subcontractor confirms the contract.
- Submit the contract.
Subcontractors accept the discount terms when they confirm their contracts on the system.
- Once Subcontractors confirm their contracts, the discount terms will be locked.
- Discounted contracts do not affect usage fees paid by the Subcontractor.
Last Published Wednesday, July 10, 2024