| # Contract fees and penalties Fees and penalties In Infor LN 10.4, you can define fees and penalties for a contract line. The contract fees and penalties are used to incentivize the contractor and can be agreed upon with the contractor as part of the contract. You can define fees and penalties for all the contract types. The invoicing method is defaulted from the contract line data. However, you can change the invoicing method. For Cost-Plus contracts, the Cost-Plus Percentage Fee (by using Mark Up Percentages on the Contract Line) is supported. In Infor LN 10.4 Fixed, Incentive, Award Fees, and Penalties are also supported. In Infor LN 10.4, the fee amount must not exceed the funded amount specified for the contract. Infor LN allows you to approve the fees only if the funds are available for the contract. The fees cannot be settled using advance amount. For cost-based contracts, the user can bill these cost to the customer. When the billing rates are approved, the overhead calculation can be reapplied, including the considered periods and transactions. Note For penalties, invoice with a negative amount or credit note is generated. When using fees and penalties, the holdback functionality is not applicable. For more information, refer to Create fees and penalties for contract. |