Create a contract rate card

You can create rate cards to track contract expenses. Rate cards help to record and allocate costs.

Before you begin

You must activate Cost Management plugin to use rate cards.

Role required: financial_mgmt_user, asset, or contract_manager

About this task

A contract rate card provides detailed price information for a contract and enables you to generate expense lines for recurring expenses automatically. There can be multiple rate cards for the same contract.

Consider the following case: an organization has a contract with a third-party company, which oversees technical operations in the organization's datacenters. The contract costs to use a specific server model in the New York datacenter are different from using the same server model in the London datacenter. There are two rate cards to detail these costs separately.

Procedure

  1. Navigate to Contract Management > Contract > All.
  2. Select a contract.
  3. In the Contract Rate Cards related list, click New.
  4. Complete the form.
    Field Description
    Number The contract rate card number.
    Contract The internal contract number.
    Summary type The contract rate card type. Categorizing rate cards can be useful for reporting. Select Grow Business, Run Business, or Transform Business.
    Name A descriptive name for the contract rate card.
    Active Check box that indicates whether the rate card is available for use.
    Short description A brief description of the contract rate card.
    Start date The date on which the contract rate card becomes active. Expense lines are generated for costs incurred beginning on the date specified. For financial calculations to work, the date cannot be before the start date of the contract.
    End date The date on which the contract rate card becomes inactive. No expense lines are generated for costs incurred after the end date. For financial calculations to work, the date cannot be after the end date of the contract. The date is automatically set to the end date of the contract if no value is entered and the contract has an end date.
    Interval The amount of time between rate card charges. For example, Monthly, Quarterly, or Annually.
    Cost center The cost center financially responsible for the rate card.
    Last processed The most recent date on which the rate card was charged.
    Next process The next date on which the rate card will be charged.
    Description Detailed information about the rate card.
    Sales tax Check box that indicates whether to apply sales tax to the total cost.
    Tax rate The effective tax rate to apply to the total cost. Tax rate is usually the average tax rate charged.
    Distribute cost The method for distributing the amount listed in Base cost and generating expense lines.
    Value Type of value to use when Allocate and distribute cost based on value is selected in the Distribute cost field.
    Base cost The amount that must be paid before taxes.
    Tax cost The total cost of the tax.
    Total cost The final cost of the rate card after adjustments, such as taxes, have been applied.
  5. Click Submit.