Contract payments

Configuration Management enables you to track payment amounts made against a contract. The payment amount is dependent on weighted allocations assigned to Configuration Items (CIs). When payments post, an internal application adds the weighted amount allocation and compares the result to the total. This calculates the amount of the first payment.

Calculating contract payments

When you view a contract, the Assets section displays a line for each contract asset. The amount shown on each contract asset line depends on the weighted allocations that are assigned to the assets. When you record payments, there is an internal application that adds the weighted amount allocation, compares the result to the total, and calculates the first payment.

Example: Calculating contract payments

Assume that you have a contract covering three assets. An expense line is created for each asset in the Assets section of the Contract form. You make a payment of $127.50 (USD) for all three assets. Contract Management allocates approximately one-third of the payment to each asset’s expense line.

Asset	Payment
First asset	42.59
Second asset	42.46
Third asset	42.46
Total	127.51

When Contract Management adds the allocated amounts, the total is 127.51, which is one cent over the total payment amount. Contract Management adjusts the first allocation amount to ensure the total allocated amount equals the actual payment amount. The final expense line amounts are as follows:

Asset	Payment
First asset	42.58
Second asset	42.46
Third asset	42.46
Total	127.50

Cancel a payment record

Contract Management integrates service contract information and tracking into Service Manager. Unlike service level agreements, which describe how services in a contract are to be rendered, service contracts are financial agreements that define the services to be provided and the financial implications of using those services. Contract Management tracks each service contract associated between a customer and service provider, and compiles individual expenses and costs for those services. When using the Configuration Management Payments option, you can submit, cancel, or delete a payment record.

To cancel a payment record, follow these steps:

1. Click Configuration Management > Contracts > Payments.
2. Use search or advanced search to find one or more records.
3. Select the target payment record you want to cancel.
4. Click Cancel Payment. The Status changes from Pending to Canceled.
5. Click Save.

Delete a payment record

Contract Management integrates service contract information and tracking into Service Manager. Unlike service level agreements, which describe how services in a contract are to be rendered, service contracts are financial agreements that define the services to be provided and the financial implications of using those services. Contract Management tracks each service contract between a customer and service provider, and compiles individual expenses and costs for those services. When using the Configuration Management Payments option, you can submit, cancel, or delete a payment record.

To delete a payment record, follow these steps:

1. Click Configuration Management > Contracts > Payments.
2. Use search or advanced search to find one or more records.
3. Select the target payment record that you want to delete.

4. Click Delete. The payment record is deleted from the list of payment records.

Generate a payment schedule for a contract

Contract Management tracks each service contract between a customer and service provider, and compiles the individual expenses and costs for those services. Configuration Management allows you to generate a payment schedule for a contract as long as there is an outstanding balance for that contract.

To generate a payment schedule for a contract that is not expired, follow these steps:

1. Click Configuration Management > Contracts > Contracts.
2. Use search or advanced search to find one or more records.
3. Select the record that you want to update.
4. Open the Financial section.
5. Go to the Payment Information subsection.
6. Click Generate Payment Schedule to start the Generate Payment Schedule wizard.
7. Complete the following required fields:
   • No. of Payments: Enter the total number of payments to be made.
   • Frequency: Select Daily, Monthly, or Annually.
   • Do one of the following to choose the Currency value:
     • Select a currency from the list. For example, British Pound.
     • If the Currency box is empty, click Fill to choose an ISO currency code. For example, GBP for British Pound.
     • Click Find to generate a record list of currency records. Double-click any record to display the record in the Currency form.
   • Currency EX Date: Required only if the system currency and payment currency are not the same.

8. Click Next to return to the Contract Information form. The pending payments are listed in the payment schedule table at the bottom of the form. For example, if you have scheduled five monthly payments of $100.00 each, these payments are listed with their due dates and a status of pending.

   Note Configuration Management verifies that the payment schedule fits within the start and end dates of the contract. If the amount and frequency of payments do not fit within those limits, Configuration Management displays an error message.

Schedule a payment for a contract

Contract Management tracks each service contract between a customer and service provider, and compiles individual expenses and costs for those services. Configuration Management allows you to schedule a payment for a contract as long as there is an outstanding balance for that contract.

To schedule a payment for a contract that is not expired, follow these steps:

1. If you use the Manage Payments option, follow these steps:

   1. Click Configuration Management > Contracts > Manage Payments.
   2. Click New to create a new payment record.
   3. Use search or advanced search to find one or more records.
   4. Select your target record.

2. If you use the Contracts option, follow these steps:

   1. Click Configuration Management > Contracts > Contracts.
   2. Use search or advanced search to find one or more records.
   3. Select your target record.

   4. Open the Financial section, and then go to the Payment Information subsection. In this subsection you can view actual costs, such as rent and renewal.

   5. Click Schedule Single Payment.
3. Type the payment amount you want to schedule in the Amount field.
4. Choose a value in the Currency field. For example, British Pound.
5. Select a date in the Currency EX Date field if the system currency and payment currency are not the same.
6. Select the payment status in the Status field. The following are available status types:
   • Pending: The initial status when you first add a payment to a contract.
   • Submitted: Indicates that the payment processing is complete and cannot be retrieved for modification or deletion.

   • Canceled: The payment is stopped. The payment appears in the list of payments, but it cannot be submitted for payment.

     If you are scheduling a payment, you can select Pending.

7. Select a Payment Code to indicate the type of payment being scheduled. You can choose from the following payment options:
   • One-time: Single payment.
   • Purchase: Payment to purchase an asset or to apply toward acquiring a leased asset.
   • Renewal: Payment toward renewal costs.
   • Buyout: Pay off a lease contract.
   • Other: Payment of other costs, such as administrative expenses.
8. Type the date the payment is due in the Date Due text box. The format is mm/dd/yy. You can also select the due date and time from the Service Manager calendar. The due date must be a future date to ensure that the payment processes correctly.
9. Enter additional payment information in the available payment fields.
10. Click Add.

Submit a payment record

Contract Management integrates service contract information and tracking into Service Manager. Unlike service level agreements, which describe how services in a contract are to be rendered, service contracts are financial agreements that define the services to be provided and the financial implications of using those services. Contract Management tracks each service contract between a customer and service provider, and compiles individual expenses and costs for those services. When using the Configuration Management Payments option, you can submit, cancel, or delete a payment record.

To submit a payment record, follow these steps:

1. Click Configuration Management > Contracts > Payments.
2. Use search or advanced search to find one or more records.
3. Select the target payment record you want to submit.

4. Click Submit Payment. The Status changes from Pending to Submitted.

   Note Submitting a payment does not make an actual payment.

5. Click Save.