v7 FreeBalance Help

Overview

Contract Management Support Entities (Contract Management Module), as well as Other Support Entities and System Parameters (both under the Admin Module) conform the configuration resources for creating and managing contracts.

The optimum order in which the Contract Management parameters should be set up is:

1. System Parameters

For a detailed list of Contract Management System Parameters and its configuration, see System Parameters > Contract Management in the Admin Module.

2. Admin Support Entities

The following parameters required by the Contract Management are located in the Admin Module:

• Payment Methods (see Support Entities > Payment)
• Funding Source Types (see Support Entities > Founding Sources)
• Funding Sources (see Support Entities > Founding Sources)
• Projects (see Support Entities > Other Support Entities)
• Document Sections (see Support Entities > Other Support Entities > Document Sections)
• Contract Types (see Support Entities > Contract > Contract Types)
• Guarantee Types (see Support Entities > Other Support Entities > Guarantee Types)

3. Contract Management Support Entities

Establishing the Payment Base and Contract Line Item Type support entities is necessary to proceed with Contract Management.  When a Payment Base or Contract Line Item Type is defined and entered into the System, it can be referenced, modified, and applied to Contract Management processes in the future. 

Payment Base

The Payment Base outlines the payment details applied to a Contract.  The Payment Base may be set to Lump Sum, Time Based, and Other.

• Lump Sum - Defines a one-time payment in part or in full.
• Time Based - Defines payments over multiple periods as specified. 
• Other - Defines alternative payment methods as specified.

A created Payment Base will be stored in the System and will be available to be applied to Managed Contracts.

Contract Line Item Types

Contract Line Items are a line of deliverables of a contract.  Line Items are the base for contract planning, inspections and control techniques.  For this, Line Items must be subdivided or decomposed into a series of Drops or work Items.

A Line Item can refer to a Good, Service, or Work.  When creating a Line Item, the Type must be specified.

• Good - A tangible commodity as conditioned in the Contract.
• Service - An intangible service as conditioned in the Contract.
• Work - Operational services providing on behalf of the Contractor.
• Other - A Line Item that differentiates from the options above.

When a Line Item is entered into the System, it is later applied to the Managed Contract and their associated processes.