Adding Account Contracts

Last Updated: Aug 04, 2020
  1. Under the Account Contracts heading on the left click the (emoji) icon

  2. Under the Add Account Contract heading on the right enter the account contract details and terms (see the edit account contract panel section for details on each field)

  3. Adding Commitments (optional)

    1. Load the Commitments tab

    2. Select the Commitment Type at the bottom left of the tab. The commitment options are:

      • Usage: a commitment based on the usage class (data, voice, etc.)

      • Service: commitment on all account-services or relating to a particular account-service across all account-packages

      • Package / Service: a commitment on an account-service that is used in a particular account-package

      • Package: a commitment on a particular account-package (e.g. a requirement to have ten of 'Package X' active on the account)

      • Invoice Amount: a commitment (minimum charge) on the invoice amount

    3. After you have specified the type click the + Add button and a Add Commitment pop-up will appear

    4. Specify the Transaction Service that will be used when charges are applied for failing to achieve the commitment set (optional)

    5. Enter a Transaction Description which describes the charge applied

    6. Specify the Commitment Period Charge where charges for failing to meet the commitment will apply. You can select Full Term or uncheck that option to specify a portion of the contract term (e.g. a commit frequency of 2 months over 3 commitment occurrences would cover 6 months and require the commitment to be met every two months). The commitment period will be reflected below these settings (e.g. [ From 3/15/2019 To 5/15/2019 ]). Commitment periods dates are not impacted by the contract start and end dates being modified

    7. Specify the Commitment Unit (note: this option will not be present if you selected a Commitment Type of 'Invoice Amount'). The commitment unit options shown will vary depending on the Commitment Type you selected, the options are:

      • Data: sets the commitment to be data usage specific (e.g. a 2 GB data usage commitment per commitment period). The Usage Services section below allows you to limit the data usage commitment to particular account-services if desired (e.g. if three account-services consume 3 GB, 4 GB and 10 GB of data in the commitment period then the in period data usage is 17 GB. If 17 GB is less than the 'Minimum Commit' value then the 'Under Commit Charge' will apply)

      • Average Data: sets the commitment to apply to the average data usage instead of a total. The total number of account-services applicable (determined by the usage class and the usage services specified when adding the commitment) is divided against the total amount of usage in the commitment period (e.g. 100 GB usage across ten account-services averages 10 GB usage per service). The value you set in the 'Minimum Commit' field is compared against the average data usage to determine if the under commit charge should be applied (e.g. if you set the minimum commit to 12 GB over the commitment period and the average data usage is 10 GB then the under commit charge will apply)

      • Time: sets the commitment to be time specific (e.g. a 100 minute airtime usage commitment per commitment period). The Usage Services section allows you to limit the time usage commitment to particular time based account-services if desired

      • Average Time: sums the time usage of the account-services that the commitment applies to and compares the average time against the minimum commitment value set on the commitment. If the average time does not exceed the minimum comment set then the under commit charge is applicable

      • Charge: sets the commitment to a minimum charge. If the charge for the account-services/account-packages is below the minimum commitment value entered then a charge will be applied to reach the minimum commitment value

      • Count: sets a minimum account-service/account-package total to be met. If the count is not met the minimum commit charge for the commitment period will be applied for each unit below the count value (e.g. if you set a minimum commit count of 1,000 units of Service X, with 900 Service X services active at the time billing the account, the under commit charge would be multiplied by 100)

    8. If desired add additional tiers on the commitment by clicking the (emoji) icon next to the Under Commit Charge field (note: tiers are not applicable to 'Charge' based commitments). Tiers allow you to apply multiple minimum commitments on particular commitment type. For instance, a commitment for 1 GB of data usage could be set up with a $100 under commit charge and a second tier commitment for 2 GB of data usage could be setup with a $50 charge. There is no limit to the number of tiers that can be set up

    9. When you have finished configuring the commitment click the Add button

    10. At this point you can add additional commitments for other commitment types if desired. You can also add ramp up/multiple commitment periods on an existing commitment shown on the Commitments tab. To add additional commitment periods to an existing commitment click the (emoji) icon shown on the existing commitment in the list (note: the plus will be greyed out if the commitments configured already cover the entire contract period). Configure the new commitment that will come into effect when the first commitment period is finished. Repeat the process to create multiple commitment periods for a portion or full length of the contract. E.g. an annual contract could have a 0-3 month commitment with no obligations, a 3-6 month commitment with a 10 GB data obligation, a 7-9 month commitment with a 20 GB obligation and the final 10-12 months with a 30 GB obligation

  4. Adding Termination Penalties (optional)

    1. Specify the Transaction Service (for Flat Fees) if you plan to charge flat rate termination fees (vs. a percentage of remaining commitments). If you are not applying flat fees this field can be left empty

    2. If desired specify a transaction description for the fee

    3. Click the (emoji) icon to add a new termination penalty

    4. On the pop-up that appears specify the penalty configuration

      • Remainder of Term: select this option if the penalty fee is applicable for the entire remainder of the contract term. Once you add a termination penalty with this option set you will be unable to add additional termination penalties

      • Frequency & Period: specifies the time period where the penalty fees configured are applicable. E.g. if you setup one penalty with a setting of 'Frequency: 6, Period: Month' then cancelation of the contract in the first six months of its term would result in the fees that are setup on the penalty being applied. Continuing with this example, if you setup no other termination penalties then no contract termination fees would apply should the contract be canceled after six months into its term. Alternatively you can also setup multiple penalties to apply different fees depending on when the contract is canceled (for instance lowering termination fees the further the contract goes into its term). Each penalty configured covers a specific period of the contract term, penalty periods cannot overlap. For example, if you setup a two year contract that requires different termination fees for cancelation in the first twelve months, following six months and final six months then you would need to create three termination penalties. The first penalty would be for 'Frequency: 1, Period: Year', the second 'Frequency: 6, Period: Month' and the final penalty 'Frequency: 6, Period: Month' or 'Remainder of Term' (both settings would have the same result in this scenario, as they cover a period that reaches the end of the contract term)

      • Flat Fee: specifies the flat fee charge that will apply if penalty comes into effect due to early contract termination

      • % of Remaining Commitments: allows you to charge a percentage of all the commitments configured on the contract should the contract be terminated early. E.g. if a commitment is configured on the contract to purchase $200 worth of Service A on the account per month then a 50% value in this field would result in a $100 penalty multiplied by the number months left on the contract term. Additional penalty fees would also apply depending on how many other commitments are configured on the contract. You can also configure this value above 100% if you wish to impose a penalty fee that exceeds the standard commitment charges configured on the contract

    5. Click Add on the penalty configuration pop-up when you have finished

    6. Add additional termination penalties if desired

  5. Click Save to add the account contract to the account when finished