The value of a Contract is an important attribute of most financial agreements. Intelligentcontract provides features to allow you to accurately record the value of a Contract. Contract Values can be specified in a simple way - by typing the value of the Contract and having that value displayed as it has been entered - or advanced options can be used to calculate the value of a Contract based on a breakdown of a Contracts Value. Additional Advanced options also give you more ways to display the Contract Value.
Simple Contract Values
For most Contracts using the standard Contract Value will be sufficient. You are able to specify a value for the Contract and then whether that value is a "one off" value or a regular amount, for example, monthly.
For example, for a rolling Contract that has a value of £100 per month, you are able to specify exactly that charge. The screen below shows how this contract value can be specified.
Fig 1 - Contract Value
The "No Value" option allows you to specify that a contract has no financial value. This allows you to distinguish between a zero value contract and a contract that has no financial value.
Note: If your Contract Value is a single payment and it doesn't recur, then you are able to specify that the Contract Value has a frequency of "once"
Advanced Display Options
By clicking on "Show Advanced Options", you will see additional options that allow you to control how the contract value is displayed. You are presented with 5 display options to be selected you can choose one or more of these display options at once. So you are, for example, able to display an annual value along with the value "spent" on a Contract up to end of last month.
Fig 2 - Contract Value Advanced Display Options
|Display Contract Lifetime Value||Displays the total value of the Contract taking into account the start and end date of the Contract. Please note: If you are specifying anything other than a "Once" value, this option is not available if either the start or end date are not specified.|
|Display average <monthly> value over Contract Lifetime||This option displays the average value of the Contract over its lifetime. You can select whether you wish to see an average "Annually" or "Weekly" value for example.|
The options are: <Daily>, <Weekly>, <Monthly>, <Quarterly>, <Bi-annually> (i.e.every 6 months) and <Annual>
|Display value relating to <this> <month>||This option displays the contract value that relates to a specific period such as the Last Quarter. The system will calculate, based upon the dates of the contract, the value for the specific period.|
The options are: <Last>, <This>, <Next> and then <Month>, <Quarter>, <Year> , <Financial Year>.
Please note: For this display option to work, you must specify a Start Date.
|Display value up to <end of> <this> <financial year>||This option displays the value of a Contract up to a specific period such as end of next year. The system will display the value up to that period taking into account the Contract start date.|
The options are: <Start of>, <End of> then <Last>, <This>, <Next> and then <Month>, <Quarter>, <Year> , <Financial Year>.
Please note: For this display option to work, you must specify a Contract Start Date. If you are using Financials you must either specify Contract Start Date or at least one Financial record should contain a Start Date
|This is an approximate value||Tick to indicate if the value is only an approximate amount|
When a value is displayed an icon will be displayed next to the value to indicate the period to which that value is applicable. Figure 3 below shows examples of the icons. L indicates a Lifetime value, A indicates an Annual value, TM indicates a This Month value and FY indicates a Financial year value.
If you hover over these icons, information will display detailing the specifics of the value. For example 'Contract value relating to this month 01-July-2018 - 31-July-2018'
Fig 3 - Contract Value Display options selected
Choosing the Value to display on the Summary Screen
Having used the tick boxes to decide which of the display options you would like to use, you can also decide which of these options will be displayed on the Contract Summary screen. Whilst the field is in edit mode you are able to click on the "star" next to the option to be used on the Contract Summary screen. These can be different value options for each Contract. By default, the Lifetime value is selected. The hover information will also appear on the Summary screen
Fig 4 - Value on the Summary screen
You may see that the Contract Value specified as being approximate. This is indicated when the value is preceded by a "~" symbol. Approximate values are displayed when the display option chosen is of a different frequency to the specified value. For example, When a "Daily" value is requested when the value is specified as a "Monthly" value. Values are approximate due to the varying numbers of "days in a month" and "weeks in a month".
Calculate Contract Value from Financials
If a Contracts value is more complex and you need to capture more detail about the pricing then you can use the "Use Financials to Calculate Value" option. When this has been checked, the system will use the records in the Financials tab in order to calculate the value of the Contract.
To create a Financial record, click on the Financials tab at the bottom of the contract record and then press [New], a Create Financial pop up screen will appear for you to complete. Any of the fields on the Financial form can be removed or added to if required. Complete the fields and [Save] the record.
Exclude a Record from the Value Calculation
You may wish to exclude one or more values in the Financials tab from the overall calculation of a Contracts Value. This may be when a "set up" fee or another type of one-off payment is recorded in the Financial tab, but you don't want this value to distort the monthly or annual values or it may be that new pricing for a Contract comes into operation and you want to preserve the old pricing but not include it in the current Contract Value.
Add a Discount
If the Contract value is discounted then this can be identified on the financial record concerned, you can enter either numeric or percentage values.
Start and End Dates
If the price of a Contract does vary over time (for example, the price may change from year to year) then you are able to specify the start and end dates for each Financial record. This will allow you to put an an end date against the old price and a start date against the new price. For example, if you had a £300 2-year Contract, where year 1 had a value of £200 and year 2 had a price of £100 then you could create two Financial records:
|Value: £200 ||Start: 1-Jan-2017||End: 31-Dec-2017 |
|Value: £100||Start: 1-Jan-2018||End: 31-Dec-2018|
By providing Start and End Dates for the financials allows the system to select the correct record based upon the date, the contract value for the above in 2017 would be £200, however when you view the contract value in 2018 then the value would be £100.
Fig 5 - Financials Tab
You are able to add as many records as required to detail the price of a Contract, as each record is added to the financials tab, the Contract value will update accordingly.
Fig 5 - Financials Tab
Note: Where a start date for a Financial record is not specified (i.e. left blank), then the Contract start date is assumed. Similarly, if a Financial record end date is not specified (i.e. left blank) then the Contract end date is assumed. In addition, if the Contract start or end dates are left blank but a Financial record is provided with a start or end date, then these will be assumed for the contract start or end dates.