welcome to pc361: managing customer contracts. please set cell phones and pagers to silent refrain...

Welcome to PC361: Managing Customer

Contracts

Please set cell phones and pagers to silent

Refrain from side discussions. We all want to hear what you have to say!

Feel free to ask questions. If your question is off-topic or will be discussed later in the training course, we will write it on a flip chart (parking lot) to be sure we cover it later

Two breaks and a one hour lunch are planned

Bathrooms / Snacks

First Things First

Welcome

• Who are you?

• Where are you from?

• What are you looking for?

Ice Breaker

Welcome

Training Materials Overview

Produced in Microsoft Word

Contains key concepts, processes, and task information

required to complete a user’s role in SMART

Process flows and screenshots of the SMART system are

included

This is a great reference to use after training!


Participant Guide

Used to help the Trainer facilitate the course materials

Produced in Microsoft PowerPoint

Contains key content and graphics

Generally used at the beginning or end of each Lesson


Concept Slides

Used to present the flow of either business processes or

information within SMART


Business Process Flows

Produced in Microsoft Word

Contains a scenario for each activity completed in the training

database

Provides data that you must enter for the exercise

Organized by classrooms and users

Take note of the user ID assigned to you


Activity Guide

Demonstration – instructor only (hands off)

Walkthrough – instructor leads and participants complete

exercise with instructor (hands on)

Exercise – Participants complete on their own

Challenge – Participants complete on their own


Activity Types

An online help tool that contains user procedures for completing

tasks in SMART

Used in training to perform a simulation of a SMART task or to

be used during an activity as a help guide

UPKs are also available after training on the SMART Training

website

UPKs are simulated to have the look and feel of SMART, but do

not impact the production environment. It is a safe way to

practice tasks that you perform in SMART.


User Productivity Kits (UPKs)

A short document that contains key concepts or steps involved

in a course

Can be content or system related

Available for all participants to use during training

Used after training for quick reference from the Training Portion

of the SMART website

Referenced as often as possible during training to indicate the

“handiness” of the material


Job Aids

Are conducted using the SurveyMonkey tool

Please complete a course evaluations for each new course that

you attend

Trainers also complete a course evaluation at the end of each

class


Course Evaluations

Questions

Course Objectives

Create and maintain contracts

Work with billing and revenue recognition plans

Manage revenue and contracts billing

Process prepaid amounts

Integrate contracts with other SMART modules

Upon completion of this course, you will be able to:

Lesson 1

Lesson 1: Understanding Contracts

Lesson Objectives

After completing this lesson, you will be able to:

• Define key terms

• Explain the end-to-end process for contracts and describe how managing contracts fits into the end-to-end process for Projects/Grants

• Explain contract integration with other SMART modules

• List roles involved in the contracts process and describe tasks performed by each role


Defining Key Terms for Contracts

• Contract – The document related to a grant that defines how the Grantee bills and recognizes revenue from a Sponsor

• Product – The goods and services that you sell to your customers on a contract

• Amount-Based Products - Select this type of product if you want to define how much you bill for and when. After you define your contract and add the products that make up your contract, the next step is to allocate the contract's fixed price amount across any eligible amount-based contract lines

•Rate-Based Products - Select this type of product when you want the system to bill as costs are incurred. Rate-based contract lines are priced using SMART Project Costing rate sets and rate plans. Once defined, in most cases, the rate set or rate plan defaults onto the rate-based contract.



• Billing Plan – Stores the timing of when billing occurs, how bill lines should appear, and what notes should relate to the bill. You can assign contract lines with similar billing requirements to the same billing plan. Each contract has at least one billing plan and a contract may have more than one billing plan.

• Revenue Plan – When Customer Contracts manages revenue for a contract line, you associate each contract line with a revenue plan. The revenue plan contains a list of events defining when revenue is recognized for each contract line assigned to that revenue plan.

• Milestone – An activity, the completion of which marks an important event in a project. Achieving a milestone can result in sending a bill or recognizing revenue.



• Amendment – A contract amendment is any change made to an active contract where you are altering certain obligations and entitlements of the contract. This could include modifications to the data contained in the contract entry component and monetary changes. Using amendment processing, Customer Contracts enables you to maintain an audit trail, as well as a historical record, of certain changes made to the contract throughout its life cycle.

• Contract Status – Provides you with a visual indicator of where your contract is within the contract life cycle and it designates when a contract is available for lookup and processing


Understanding Contracts Processes

End-to-End Projects, Grants and Contracts Process


Understanding Contracts ProcessesIntegrating contracts with other SMART modules

•SMART Contracts is designed to fully integrate with SMART Project Costing, Billing, General Ledger and Grants.


Integrating Contracts with other SMART Modules• SMART Contracts integrates with SMART Billing and SMART Project

Costing, enabling you to generate invoices for all of your contract lines

• SMART Contracts sends billing information for fixed amount and rate contract lines to SMART Billing

• SMART Project Costing send billing information for rate-based contract lines to SMART Billing

• SMART Billing then generates invoices for the contract lines and sends information regarding the invoices back to SMART Contracts and SMART Project Costing.

• Contract Managers must enter revenue received from billings as deposits within the Accounts Receivable module. This training will be provided separately.


Understanding Contracts Processes

Contracts Process Roles

•Agency Customer Contracts Manager - Enters, reviews, and analyzes customer contracts and understands the integration with other SMART modules

•Kansas Customer Contracts Viewer - Views customer contracts information only

•Agency Customer Contracts Maintainer – Maintains configurations to agency-maintained customer contracts tables


Lesson Summary

In this lesson you have learned to:

• Define key terms

• Describe the processes and activities contained within the Contracts module

• List roles involved in the contracts process and describe tasks performed by each role


Lesson 2

Lesson 2: Creating and Maintaining Contracts

Lesson Objectives

• Explain contracts, milestones, amendments, and products

• Enter and activate a contract

• Create and manage milestones

• Create an amendment and understand the amendment process to update the contract

• Explain the Contracts/Billing Interface

• Use the billing worksheet


Understanding Contracts, Milestones, and Amendments

• A contract consists of two components, the contract header and the contract lines

• The contract header contains information relevant to the entire contract• A contract line corresponds to an individual product

• Contracts can have a status of “Pending”, “Active”, and “Closed”


Header

Line

Understanding Contracts, Milestones, and Amendments

Creating and maintaining contracts•Contracts can be created manually using Customer Contracts link or automatically via the Grants module. We will review creating a contract manually. Amendments and updates may be made to contract while the contract is active.

Enter contract header Enter contract line(s)Assign billing plan to

line(s)Assign revenue plan to

line(s)

Contract entered

Assign project ID to line(s)

Perform amount allocation (if applicable)

Identify additional information (optional)

Activate and save contract


Creating Contracts

• A billing plan stores the schedule of billing events (when to bill) and the corresponding bill lines (what to bill) for these events. Each contract line product is tied to a billing plan, and you can associate contract lines with similar billing requirements with the same billing plan

• Billing plan events depict how much to bill based on a percentage of the billing plan total, and when to bill using the event status

• A revenue recognition plan enables you to define, administer, and maintain accounting schedules and rules for the products and services under a contract

• Revenue plans are contract-specific, i.e., you cannot use the same revenue plan across multiple contracts


UPK – Creating Rate-based Contracts

UPK – Creating Amount-based Contracts

Activity 1 – Creating & Activating Contracts


Managing Contract Milestones

• A milestone is a significant event in the life of a contract

• Milestones can have a status of “Pending”, “Ready”, “Completed”, and “Cancelled”

• You can use milestones to control billing or revenue recognition in amount-based contracts. To do that, you need to link the relevant milestones to your contract

• For some products, the milestone template defaults on to the contract

• Set the Milestone Status field to “Ready”

• Milestone Conditions must be met


Activity 2 – Managing Contract Milestones


Creating Amendments

• A contract amendment is a change made to an active contract where you modify the original terms and conditions of the contract

• Amendments can have a status of “Pending”, “Ready”, “Complete”, or “Cancelled”

• This is a new version of an active contract that you can edit and modify

• Reasons to amend a contract

• Addition or subtraction of overall contract and contract line amounts

• Addition of new lines to the contract

• Modification of billing and revenue events in “Pending” status


Activity 3 – Creating Amendments

Activity 4 – Maintaining Contracts


Understanding the Contracts/Billing Interface

• The Contracts Billing Interface process is divided into two major parts: rate-based contract line billing (controlled by SMART Project Costing), amount-based contract line billing (controlled by SMART Contracts),

• After the Contracts Billing Interface process is run as a batch process, agencies use the billing worksheet to review and approve or delete temporary bills created by the process


Understanding the Contracts/Billing Interface


Activity 5 – Understanding the Contracts/Billing Interface


Lesson Summary


• Manually create and activate a contract

• Manage contract-specific milestones

• Update a contract using amendments

• Approve bills through the billing worksheet


Lesson 3

Lesson 3: Processing Prepaid Amounts

Lesson Objectives

• Define a prepaid amount and associate it with a contract

• Define utilization criteria and review prepaid utilization history and prepaid activity for a contract

• Set up prepaid billing and deferred revenue distribution for a contract


Understanding Prepaids

Define prepaid amountAssociate prepaid with

contract line

Define utilization criteria

Set up initial billingSet up deferred

revenue distribution

Prepaid amount depleted?

Prepaid balance is established

Contract created

Yes

Prepaid depleted

Bill transaction

View results

No

Send transaction to billing

Utilize billable transaction

Processing prepaid amounts•Customers can prepay for rate-based goods and services. The prepaid amount can be applied to one or more rate-based contract lines. In addition, the amount can be used against all or a portion of the billing activity for the applicable contract lines.


Activity 6 – Processing Prepaid Amounts

Activity 7 – Processing Prepaid Amounts


Lesson Summary


• Explain prepaid amounts, including types, related statuses and processing

• Define a prepaid amount and associate it to a contract line

• Define utilization criteria, view prepaid utilization history, and monitor prepaid activity

• Set up Prepaid Billing


Lesson 4

Lesson 4: Closing Contracts

Lesson Objectives

• Close a contract


Closing Contracts

• Setting a contract status to “Closed” requires the following

• Revenue and Billing plans must be at “Completed” status

• Rate-based vs. Amount-based

• Manually set the contract status to “Closed”


Activity 8 – Closing Contracts


Lesson Summary

• Close a contract


Closing the Day

Use the following resources

SMART Training Website http://da.ks.gov/smart/training.html

SMART Training Team Contact us at [email protected]

SMART materials Review, Review, Review your SMART materials after

training!!

Resources Available

http://da.ks.gov/smart/training.html

mailto:[email protected]

Questions

Evaluation

Please fill out the evaluation for today’s instructor led training session!

http://www.surveymonkey.com/s/SMARTtrainingPC361

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Thanks for coming and participating

today!

welcome to pc361: managing customer contracts. please set cell phones and pagers to silent refrain...

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