Closing and Renewing Master Contracts

When renewing a contract that has a task list with inactive tasks, only the active task codes will be assigned to the contract. This applies to maintenance contracts, master contracts, as well as mass renewing contracts. You can print a report before renewing by selecting Print > Contract Inactive Tasks that shows any inactive tasks or task lists on the contract(s). This report will automatically print after renewing if there are any inactive tasks or tasks lists that were not added to the new contract(s).  See Setting up Maintenance Task Codes and Task Lists.

If the Customer is inactive, you will not be able to renew master contracts. If a contract that is linked to the master contract is associated with an inactive location, that contract will not be renewed but will still be linked to the master contract.

To close and renew master contracts:

1. When you close or renew a master contract, the system checks the validity of all assigned maintenance contracts.
2. Select Cards > Service Management > Service Manager.
3. Select a customer and select the Master Contract indicator.
4. Select a contract and select Close or Renew. The Requesting Process displays in the Process Master Contracts window, along with all maintenance contracts assigned to the master contract. You can select to view All maintenance contracts, or only those that have a Caution or Invalid designation. You cannot close or renew a master contract that has an invalid maintenance contract attached. All attached contracts must display a green valid indicator or a yellow caution indicator before the close or renew process can be committed.
5. Address all problems that impact processing. The indicator in the Valid field shows whether the contract will be processed:
   • Green
     A green indicator displays if the maintenance contract is valid and will be processed. This means the contract contains forecast costs, has been 100% billed and recognized, the amount billed equals the contract amount, all service calls are closed (Renew process only), and the contract and customer are not on hold or inactive (Renew process only).
   • Yellow
     A yellow caution indicator displays for contracts that may require further review before committing. The process will still be committed even though the caution indicator is present. Maintenance contracts displaying a yellow caution indicator will still be committed, but you may want to address their problems. The contract will have a caution indicator if any of the following are true: 
     • The amount billed does not equal the contract amount.
     • The contract is not 100% billed and recognized.
     • There are open service calls (Renew process only). 
   • Red
     A red invalid indicator displays for maintenance contracts with problems that must be corrected before the process can be committed. Any of the following conditions make the contract invalid: 
     • The contract is closed.
     • It does not contain forecast costs.
     • It contains open service calls (Close process only).
     • The contract or customer is on hold. (Renew process only).
     • If the customer or location is inactive (Renew process only).

6. You can use the Show Details button to expand the scrolling window and view all fields; any field containing a problem is marked so that you can correct the problem. You can double-click a maintenance contract to open that contract in the Maintenance Contract window. If the master contract has billing control, all its assigned contracts are renewed for the same date range, even if their start and end dates did not previously match those of the master contract. When renewing multi-year master contracts, the renew process looks at the anniversary date and not the expiration date of the master contract and attached maintenance contracts when calculating the new contract information. Once the contract's anniversary date is equal to the expiration date, the contract is renewed as a single-year contract.

7. If you are renewing the master contract, mark the Leave Contracts Open checkbox if you do not wish to close the attached maintenance contracts as the master contract is renewed. If you are renewing a master contract when any open service calls exist on a contract, you will need to leave the prior contract OPEN.

8. Select Print to print the Master Contract Process report.
9. Select Commit to continue processing all validated master contracts. Invalid contracts are temporarily removed from the window. If you make changes to a maintenance contract by zooming on the Contract No. field, you must select Redisplay in the Master Contract Process window to update the window with your changes.
10. When renewing, if the dates of any maintenance contract did not match those of the master contract and therefore had to be adjusted during the renewal process, you are prompted to print the Master Contract Process Exception report. This report detects inconsistencies in the master contract renew and master contract edit/roll down processes and helps you identify any assigned contracts that you may need to edit after the master contract has been renewed.

For example, a contract that runs for six months, from 7/1/2008 through 12/31/2008, is assigned to a master contract that runs for two years, from 1/1/2006 through 12/31/2008. When the master contract is renewed for 1/1/2009 through 12/31/2011, all assigned contracts are renewed for the same two-year date range, including the contract that previously ran for six months. The contract amount, however, remains the same. Such issues are identified on the exception report.