Creating contracts

When you create a new contract, choose a contract type from the list in 5.1, “Contract module applications” on page 74.

All contracts you create are defined at the organizational level, so that the purpose of each contract type has been defined. In addition, you can use the Organization application to define further contract types of your own.

How to create a contract

To create a new contract, use Go To→ Contracts and select a contract type.

Figure 5-1 on page 78 shows you how to open the Contracts module to select the different kinds of contracts.

Figure 5-1 Start the Contracts Module and choose the type

When you start creating a new contract in IBM Maximo Asset Management, you include the following general information about the contract:

򐂰 Contract Identifier and Description

򐂰 Contract Type

򐂰 Status

򐂰 Vendor Reference number and details about the vendor

򐂰 Buyer

򐂰 Start Date and End Date

򐂰 Total Cost or Maximum Amount

򐂰 Contract lines

򐂰 Terms and Conditions

In addition, you indicate properties that are specific to each contract type.

How to create a Master Contract

A Master Contract is a way to associate many contract types together for the same vendor and define terms and conditions for the relationship with the vendor. A Master Contract lists all contracts that you have with a particular

Chapter 5. Contracts 79 vendor. Master Contracts are created in the Master Contracts application. Refer to 5.1, “Contract module applications” on page 74.

A Master Contract can be associated with the following types of contracts:

򐂰 Purchase Contracts

򐂰 Lease Contracts

򐂰 Warranty on assets

The following introduction guides you through the creation process:

1. To create a new Master Contract use Go to→ Contracts→ Master Contracts.

2. Fill in the description and select the company.

3. Select one or more sites from the Select Action menu.

4. Before finalizing the Master Contract, the contract has to be authorized.

Choose Select Action→ Authorize Site.

If you have changed the status of the Master Contract to APPR, an error message displays, as shown in Figure 5-2.

Figure 5-2 Example, when not changing the status for the Master Contract

Click OK. The status of the contract has to be approved. Therefore, click the Change Status button to change the status to APPR.

Now you may associate further underlying contract to your Master Contract.

5. Choose Select Action→ Create Associated Contract and select the type of contract.

6. Save the contract. You are now able to add more contracts to the same Master Contract.

Tip: Keep in mind that when you create a Master Contract, certain fields such as total cost are for your reference only and have to be updated manually.

The newly created Master Contract has the status Draft. The contract must be approved and cannot be changed after.

Figure 5-3 shows the status values to be added to the Master Contract.

Figure 5-3 Approve Master Contract

Further details about the Master Contract are in theIBM Maximo User’s Guide:

http://publib.boulder.ibm.com/tividd/td/ITSerDsk/sdug621/en_US/PDF/621_

mx_ug.pdf

Revising contracts

After you have changed the status of a contract to APPR (Approved), the only field that can be edited on the contract is the Status field. You cannot un-approve a contract. If you have to modify the contract, you must use the Revise Contract action.

The Revise Contract action is available for contracts with a status of APPR that do not already have an existing revision (that is, a revision with a status of PNDREV (Pending Revision). The Revise Contract action creates a copy of the current contract. IBM Maximo Asset Management copies all of the information from the original contract, including contract lines, terms and conditions, associated service level agreements, commodities, and authorized sites. To separate both contracts, the contract description for the revised contract has to be added.

Note: Associated contracts can only be created when the status of the Master Contract has been set to APPR or WSTART.

Note: A contract can be changed only by creating a revision of the existing contract.

Chapter 5. Contracts 81 The contract number is the same as the original contract, and the value in the Revision field is the revision number of the original contract plus one. For example, the original contract has a revision number of zero, so the first revision has a revision number of 1 (0+1=1). The status of the revision is PNDREV. The status of the original contract does not change when you create a revision. The original contract is available for use and can have new transactions created against it. When you change the status of the revision from PNDREV to APPR, IBM Maximo Asset Management changes the status of the original contract from APPR to REVISD (Revised) and that version of the contract becomes a history record.

IBM Maximo Asset Management includes escalations that check for contracts in a status of WSTART whose start date is the current date and automatically changes the status of the contract to APPR. You can use the View Revision History action to view every revision that has been made to the current contract with the revision process. The Contract Details table window displays every version of the contract. IBM Maximo Asset Management displays the most current revisions first. The Contract Line Details table window displays contract lines that have been changed or added in the version of the contract that is highlighted in the Contract Details table window and the previous version of the contract. Each changed line is followed by the previous version of that line, so that you can see the changes.

For further details regarding contract status, refer to IBM Maximo User Guide:

http://publib.boulder.ibm.com/tividd/td/ITSerDsk/sdug621/en_US/PDF/621_

mx_ug.pdf

Deleting contracts

IBM Maximo Asset Management does not offer the option to delete a contract.

You are supposed to keep the contract for reference purposes, even after it is no longer in use.

Note: If you approve a contract revision that has a Start Date is in the future, IBM Maximo Asset Management changes the revision status to WSTRART (Waiting to Start) and the original contract does not change status from APPR to REVISD.

Tip: During a database search for a contract record, the contract that has the highest revision number is the most recent version of the contract.

The status of the contract can be set as:

򐂰 SUSPND (Suspended)

The contract cannot be edited. You can change a contract’s status from SUSPND to APPR, CAN, or CLOSE.

򐂰 EXPIRD (Expired)

The end date (End Date field) of the contract has passed without the contract being renewed. The contract cannot be edited, but a revision can be created against an expired contract. You cannot change a contract’s status from EXPIRD to any other status.

򐂰 CAN (Canceled)

Cancelling a Lease/Rental Contract or Warranty Contract cancels any outstanding scheduled payments for the contract. IBM Maximo Asset Management notifies you if unapproved purchase orders exist against a contract. Unapproved purchase orders cannot have their status changed to approved after the contract is cancelled. You can only cancel a Master Contract if all of its associated contracts are closed or cancelled. When you change a contract’s status to CAN, the contract becomes a history record and cannot be edited.

򐂰 CLOSE (Closed)

Closing a Lease/Rental Contractor Warranty Contract cancels any outstanding scheduled payments for the contract. IBM Maximo Asset Management notifies you if unapproved purchase orders exist against a contract. Unapproved purchase orders cannot have their status changed to approved after the contract is closed. You can only close a Master Contract if all of its associated contracts are closed or cancelled. When you change a contract’s status to CLOSE, the contract becomes a history record and cannot be edited.

Example: Purchase Contract

Because the Purchase Contract allows many more configuration options than other contracts, we discuss it in more detail in this section. (An overview of the contract types is given in 5.1, “Contract module applications” on page 74.) After you have created and specified the basic information for your Purchase Contract, you are allowed to add several more records to this particular contract.

You may add records to the Contract Lines tab in the Purchase Contracts application to review and modify the lines on a contract (Figure 5-4 on page 83).

Chapter 5. Contracts 83 Figure 5-4 Purchase Contract - Contract Lines

Using this tab, you also may create a payment schedule, add vendor items, or other standard services:

򐂰 Payment Schedule

Click Payment Schedule to open the Payment Schedules dialog box and create a schedule of payments for contract line items. You create a schedule at the line item level. The schedule can be created when the contract is approved.

򐂰 Vendor Items

Click Vendor Items to open the Vendor Items dialog box and select items supplied by that vendor. This dialog box is accessible from multiple applications.