Introduction about Contracts: A Contract is a voluntary, deliberate, and legally binding agreement between two or more competent parties for performing, or refraining from performing, some specified act(s) in exchange for lawful consideration, and the unit of trade for a financial or commodity future. Contracts are usually written and generally have to do with employment, sale or lease, or tenancy.

Contract Management: The contract management module allows for registration, quotation, management, billing and retirement of contracts. The module support a comprehensive set of billing rules and calculations for a wide variety of contract types.

Key functions of Contract Management include:

  • Providing support for Rental Contracts
  • Providing support for Lease Contracts
  • Providing support for Service Level Contracts (SLA)
  • Providing support for Maintenance and Repair Contracts (MARC)
  • Supporting best-practice template configuration to simplify/streamline the creation of new contracts
  • Creating, managing and monitoring of all contracts
  • Reporting on contract expiry and asset availability after contract

Lease Management: The Leasing Module provides a complete end-to-end solution for all companies that lease out mobile assets. It supports all steps in the financing contract life cycle from a financing opportunity for a lease to an offer going over to mid-lease changes and resulting in end-of-lease options.

Key functions of Lease Management include:

  • Lease payment schedule: The payment schedule is an overview of lease and provides at a glance all key information regarding the state and current values of a lease. It include the original values of the lease contract, payment calculated based term and residual value. Date a payment was billed, invoiced and paid. The payment schedule support both fixed and variable interest rates.
  • Lease Contract amendments: Mid-lease changes are inevitable. Fleet-Key Lease Module provides functionality that will support contract amendments required. Amendments supported include capital adjustments, payment hold / payment holidays and interest rate adjustment.

Definition of Contract Management

Contract management or contract administration is the management of contracts made with customers, vendors, partners, or employees. Contract management includes negotiating the terms and conditions in contracts and ensuring compliance with the terms and conditions, as well as documenting and agreeing on any changes or amendments that may arise during its implementation or execution. It can be summarized as the process of systematically and efficiently managing contract creation, execution, and analysis for the purpose of maximizing financial and operational performance and minimizing risk. Common commercial contracts include sales invoices, purchase orders, and utility contracts. Complex contracts are often necessary for construction projects, goods or services that are highly regulated, goods or services with detailed technical specifications, intellectual property (IP) agreements, and international trade.

Contract Life cycle Management is applying technology to standardise, streamline and automate contract initiation, creation, negotiation, execution through to expiration. By doing so organisations are finding that they can cut contract cycle times with improved standardisation, control and visibility of their entire contract portfolio. These improvements lead to lower procurement costs, increased revenue, and reduced customer migration, improved compliance, lower risk and an overall gain in employee productivity.

Steps of On-going contract management

On-going contract management involves the administration of a range of activities, which include:

  • Contract maintenance and change control;
  • Charges and cost monitoring;
  • Ordering or call-off procedures;
  • Receipt and acceptance procedures;
  • Payment procedures;
  • Budget procedures;
  • Resource management and planning;
  • Operational and management reporting;
  • Asset management

360° Strategic Asset Management Contract Management Processes

Contract Management Functionalities

The following is a graphical view of the functionalities for contract planning.

Contract Management business process

The following is a graphical view of the functionalities for business process of rentals and service contracts planning.

Contract Features

Contract has the following main features that integrate with Dynamics AX.

Note

This contracts list view is a display of all the contracts in their different contract per specific status.

Contracts lines can be created from various sources. These include:

  • From a previously recorded Failure
  • From a previously recorded Incident
  • Directly from the Specific Asset register
  • Directly from the Maintenance register work order

Task

Description

Contract

Create a new contract with the create form.

Contract Specific

Enter and view information about the specific contract line for the selected contract.

Lines

Use this form to create and maintain the item specific contract lines for the main contract, add the feedback values/quantities to the specific record and to create purchase orders for the specific contract. When the contract is a lease, then a payments schedule is generated for the period installments.

Setup

The purpose of this forms are to capture the characteristics, contract age, address information, maintenance and additional information for the contract.

Create

The purpose of this function is to create a record of Maintenance or Failure.

Enquiries

This button displays the Enquiries function for the contracts on budgeting and actual costing, handover/collection/contact reporting and contract quotations.

Meter Feedback

The main purpose of this function is to provide feedback on events in progress. Feedback can be done on all resources linked to an event.

Status

This function is used to change the contract specific phases/status: Created, In Progress or Approved and the record status.