| # To define a contract To define and process a contract, complete the following steps: Step 1. Create a contract Define the data for the contract as described in Contract Data Set-up. Step 2. Create contract lines Define the data for the contract line as described in Contract Line Data Set-up. Contract lines allow you to maintain additional and detailed information required for a contract. Step 3. Define billing cycles Define the Billing cycle using the Billing Cycles (tpctm0130m000) session. A billing cycle is the time interval defined to generate billing statement for the contract. You can define the billing recurrences, as part of the billing cycle, using the Recurrences (tcccp0143m000) session. Note: Billing cycles can be defined only for contracts of the type Cost Reimbursement and Time and Materials. Step 4. Define the contract deliverables Define the data for the contract deliverable (items that can be hardware or non-hardware) as described in Contract Deliverable Data Set-up. Step 5. Release items to warehousing Release the items (deliverables) to warehouse using the Release Deliverables to Warehousing option from the Actions menu in the Contract Lines (tpctm1110m000) session. Note: LN generates the warehouse order number. You can view on the Shipping tab, in the Project Deliverables (tppdm7100m000) session. LN sets the contract deliverables' status to Released to Warehousing. Note: To release items to warehousing the status of the contract, contract line and contract deliverable must be set to Active. Step 6. Review the shipment details LN generates the shipment data in the Project Shipments (tppin0160m000) session after the warehousing order is processed. Step 7. Review the cost transactions Review the costs of the deliverables transferred to Project. LN transfers the costs booked on production orders or when the deliverables are procured. The cost data displayed, depends on the level at which the project is pegged. Note: Costs can also be reviewed for sales order lines that are project pegged. Step 8. Generate the invoices You can generate the invoices using these invoice methods: Installment Unit rate Cost plus Progress-based Step 9. Process the invoices Use the Invoicing 360 (cisli3600m000) session to process and post the invoices. LN generates the revenues for the contract. Review the contract revenues in the Projects and Financials. Step 10. Close the contract Set the contract to Closed after the deliverables are shipped and the invoicing process is completed. Related topics Contract data set-up Contract lines data setup Contract deliverables data set-up Contract types |