Fixed Price

Finance > Contracts > New > Fixed Price

A fixed priced contract is not subject to any adjustment on the basis of the provider’s cost experience in performing the contract. A fixed price contract is typically tied to a single project, but some users also use them for support contracts. In many contracts the fixed price is divided into smaller milestone payments.

Creating Fixed Priced Contracts

1. Select the Finance > Contracts page.
2. Click New > Fixed Price.
3. Enter the following in the Contract Information section.
   • Contract Number - Only displays when editing a contract.
   • Contract Name
   • Contract Description
   • Client
   • Start Date
   • End Date - Milestones due dates default to this date.
   • SLA - A contract associated with an SLA overrides the Default SLA when the ticket is linked to the contract.
   • Setup Fees
   • Reference Number
   • Default Contract - Yes or No
   • Accumulating Contract - If Yes, the total contract amount starts at zero (0) and increases each time you add a new milestone. If No, the total contract amount is set to that fixed amount. You can add milestones whenever you like, so long as the total contract amount does not exceed the fixed amount.
   • Alter From Project - If Yes, a project phase milestone is added to the project linked to this contract each time you add a new milestone to the contract.
4. Enter additional information in the Custom Fields section.
5. Click Save.
6. Click Add to add milestone payments in the Billing Information tab.
   • Name
   • Type
   • Amount
   • Due Date - Defaults to the end date of the contract. For milestone payments Billing Review lists billable amounts using this date. You may wish to adjust this date for earlier milestone payments to ensure they display sooner in Billing Review.
   • Description

   Note: The Billing Information tab displays Billed and Posted checkbox columns. Billing Review posts a line item. Generating an invoice using Billing bills that line item.

7. Click Save.
8. Review the following in the Billing Information tab
   • Contract Billing Price - The total of all milestone amounts.
   • Billed Amount
   • Remaining Amount
9. Optionally exclude roles and work types that can report hours to this contract using the Exclusions tab.
   • If hours are reported using an excluded role or work type, the hours are reported against the Default Fallback Contract you specify.
10. Upload files to the contract using the Attachments tab.
11. Click Save.
12. Optionally reopen the contract and click Activate to begin using this contract to create billing entries.