Customer Contracts Business Unit Setup

Using the Specify Customer Contract Management Business Function Properties task, available by navigating to Setup and Maintenance work area and searching on the task name, you can specify a wide variety of business function settings for customer contracts in a specific business unit.

The selections you make for these business functions impact how Oracle Enterprise Contracts behaves during contract authoring.

Using the Specify Customer Contract Management Business Function Properties task, manage these business function properties:

Enable related accounts
Set currency conversion details

Note: You must select a default currency in the customer or supplier business function properties page, if not populated automatically from the ledger assigned to the business unit in the assign business function setup task.
Manage project billing options
Set up clause numbering
Set up the Contract Terms Library

The setup options available for the Contract Terms Library are applicable to both customer and supplier contracts, and are described in the business unit setup topic for the Contract Terms Library. That topic is available as a related link to this topic.

Enabling Related Customer Accounts

Contract authors can specify bill-to, ship-to, and other accounts for the parties in a contract. Enable the related customer accounts option if you want accounts previously specified as related to the contract party to be available for selection.

Managing Currency Conversion Options

If your organization plans to transact project-related business in multiple currencies, then select the multi-currency option. This allows a contract author to override a contract's currency, which is derived from the ledger currency of the business unit. It also enables the contract author to specify currency conversion attributes to use when converting from the bill transaction currency to the contract currency and from the invoice currency to the ledger currency.

In the Bill Transaction Currency to Contract Currency region, enter currency conversion details that will normally be used, by all contracts owned by this business unit, to convert transaction amounts in the bill transaction currency to the contract currency. Newly created contracts contain the default currency conversion values, but you can override the values on any contract, if needed.

In the Invoice Currency to Ledger Currency region:

Enter invoice transaction conversion details if the invoice and ledger currencies can be different.
Enter revenue transaction conversion details if the revenue and ledger currencies can be different for as-incurred and rate-based revenue.

Managing Project Billing Options

The options available for selection in the Project Billing region control the behavior of project invoicing and revenue recognition for contracts with project-based work. Project billing can act differently for external contracts (customer billing) or intercompany and inter-project contracts (internal billing).

Set these options, which apply to all contracts:

Select the Transfer Revenue to General Ledger option if you want to create revenue accounting events and entries, and transfer revenue journals to the general ledger. If this option isn't selected, then revenue can still be generated, but won't be transferred to the general ledger.
Indicate if a reason is required for credit memos that are applied to invoices.

These options exist in two sets - one for customer billing and a second for internal billing:

Select an invoice numbering method, either Manual or Automatic. The invoice numbering method is the method that Oracle Fusion Receivables uses to number its invoices, upon release of draft invoices from Project Billing.
- If the invoice numbering method is Manual, then select an invoice number type, which sets the type of Receivables invoice numbers that are allowed. Valid values are Alphanumeric and Numeric.
- If the invoice numbering method is Automatic, then enter the next invoice number to use when generating Receivables invoice numbers.
Select the Receivables batch source to use when transferring invoices to Receivables.

Set this option only for customer billing:

Indicate if you want contract authors to manually enter the Receivables transaction type on the customer contracts they create.

Managing Clause Numbering

You can choose to number clauses manually or automatically.

If you choose the automatic numbering method, you must select a determinant level for the numbering. You must then select the appropriate clause sequence category from document sequences that you set up for this numbering level.