C1-PPCONCRE

This algorithm is invoked when you create or edit a policy plan from the user interface or through an inbound message. It creates a contract in either of the following ways:

  • If a price item is associated with the policy plan, it creates a contract using the contract type which is associated with the price item.

  • If a pricing rule type is associated with the policy plan and the pricing rule type contains one or more price items, it creates a contract using a distinct contract type which is associated with each price item.

    Let us assume that PRT1 is associated with the policy plan and it contains three price items - P1, P2, and P3. Now, if the P1 is associated with the CT1 contract type, P2 is associated with the CT2 contract type, and P3 is associated with the CT3 contract type, the system will create three contracts - C1 using CT1, C2 using CT2, and C3 using CT3. However, if the P1 and P3 are associated with the CT1 contract type and P2 is associated with the CT2 contract type, the system will create two distinct contracts - C1 using CT1 and C2 using CT2.

    If multiple pricing rule types are associated with the policy plan and each pricing rule type contains multiple price items, it creates a contract using a distinct contract type which is associated with each price item on each pricing rule type.

If a policy plan belongs to a policy of the parent customer (where a bill group is not associated), the system will create one contract using each contract type on each account of the parent customer and bill groups. If a policy plan belongs to a policy of a bill group (where the parent customer is the policy holder), the system will create one contract using each contract type on each account of the parent customer and the bill group.

The status of each contract is set to Active. The contract start date is set to the start date of the respective plan. If the same contract type is associated with the same or different price items on the same or different pricing rule types of different plans, the contract start date is set to the start date of the earliest plan. The default rate schedule specified on the respective contract type is added to the contract in the rate information and its effective date is set to the contract start date.

Note:

The system creates a contract using a contract type for an account when the division to which the account and contract type belongs is same.

If a contract of a contract type is already present on the account, the system will not create a new contract. Instead, it will update the start date of the existing contract, if required.

If the same contract type is associated with the same or different price items on the same or different pricing rule types of different plans on different policies, the contract start date is set to the start date of the earliest plan across policies.