Welcome to PC361: Managing Customer Contracts

Please set cell phones and pagers to silent Refrain from side discussions. We all want to hear what you have to say! Feel free to ask questions. If your question is off-topic or will be discussed later in the training course, we will write it on a flip chart (parking lot) to be sure we cover it later Two breaks and a one hour lunch are planned Bathrooms / Snacks  First Things First Welcome

Who are you? Where are you from? What are you looking for?  Ice Breaker Welcome

Training Materials Overview

Produced in Microsoft Word Contains key concepts, processes, and task information required to complete a user’s role in SMART Process flows and screenshots of the SMART system are included This is a great reference to use after training! Training Materials Overview  Participant Guide

Used to help the Trainer facilitate the course materials Produced in Microsoft PowerPoint Contains key content and graphics Generally used at the beginning or end of each Lesson Training Materials Overview  Concept Slides

Used to present the flow of either business processes or information within SMART Training Materials Overview  Business Process Flows

Produced in Microsoft Word Contains a scenario for each activity completed in the training database Provides data that you must enter for the exercise Organized by classrooms and users Take note of the user ID assigned to you Training Materials Overview  Activity Guide

Demonstration – instructor only (hands off) Walkthrough – instructor leads and participants complete exercise with instructor (hands on) Exercise – Participants complete on their own Challenge – Participants complete on their own Training Materials Overview  Activity Types

An online help tool that contains user procedures for completing tasks in SMART Used in training to perform a simulation of a SMART task or to be used during an activity as a help guide UPKs are also available after training on the SMART Training website UPKs are simulated to have the look and feel of SMART, but do not impact the production environment. It is a safe way to practice tasks that you perform in SMART. Training Materials Overview  User Productivity Kits (UPKs)

A short document that contains key concepts or steps involved in a course  Can be content or system related Available for all participants to use during training Used after training for quick reference from the Training Portion of the SMART website Referenced as often as possible during training to indicate the “handiness” of the material Training Materials Overview  Job Aids

Are conducted using the SurveyMonkey tool Please complete a course evaluations for each new course that you attend Trainers also complete a course evaluation at the end of each class Training Materials Overview  Course Evaluations

 Questions

 Course Objectives Create and maintain contracts Work with billing and revenue recognition plans Manage revenue and contracts billing Process prepaid amounts Integrate contracts with other SMART modules Upon completion of this course, you will be able to:

Lesson 1 Lesson 1: Understanding Contracts

 Lesson Objectives After completing this lesson, you will be able to: Define key terms Explain the end-to-end process for contracts and describe how managing contracts fits into the end-to-end process for Projects/Grants Explain contract integration with other SMART modules List roles involved in the contracts process and describe tasks performed by each role Lesson 1: Understanding Contracts

 Defining Key Terms for Contracts Contract – The document related to a grant that defines how the Grantee bills and recognizes revenue from a Sponsor Product – The goods and services that you sell to your customers on a contract Amount-Based Products - Select this type of product if you want to define how much you bill for and when. After you define your contract and add the products that make up your contract, the next step is to allocate the contract's fixed price amount across any eligible amount-based contract lines Rate-Based Products - Select this type of product when you want the system to bill as costs are incurred. Rate-based contract lines are priced using SMART Project Costing rate sets and rate plans. Once defined, in most cases, the rate set or rate plan defaults onto the rate-based contract. Lesson 1: Understanding Contracts

 Defining Key Terms for Contracts Billing Plan – Stores the timing of when billing occurs, how bill lines should appear, and what notes should relate to the bill. You can assign contract lines with similar billing requirements to the same billing plan. Each contract has at least one billing plan and a contract may have more than one billing plan. Revenue Plan – When Customer Contracts manages revenue for a contract line, you associate each contract line with a revenue plan. The revenue plan contains a list of events defining when revenue is recognized for each contract line assigned to that revenue plan. Milestone – An activity, the completion of which marks an important event in a project. Achieving a milestone can result in sending a bill or recognizing revenue. Lesson 1: Understanding Contracts

 Defining Key Terms for Contracts Amendment – A contract amendment is any change made to an active contract where you are altering certain obligations and entitlements of the contract. This could include modifications to the data contained in the contract entry component and monetary changes. Using amendment processing, Customer Contracts enables you to maintain an audit trail, as well as a historical record, of certain changes made to the contract throughout its life cycle. Contract Status – Provides you with a visual indicator of where your contract is within the contract life cycle and it designates when a contract is available for lookup and processing Lesson 1: Understanding Contracts

 Understanding Contracts Processes End-to-End Projects, Grants and Contracts Process Lesson 1: Understanding Contracts

 Understanding Contracts Processes Integrating contracts with other SMART modules SMART Contracts is designed to fully integrate with SMART Project Costing, Billing, General Ledger and Grants. Lesson 1: Understanding Contracts

 Integrating Contracts with other SMART Modules SMART Contracts integrates with SMART Billing and SMART Project Costing, enabling you to generate invoices for all of your contract lines SMART Contracts sends billing information for fixed amount and rate contract lines to SMART Billing SMART Project Costing send billing information for rate-based contract lines to SMART Billing SMART Billing then generates invoices for the contract lines and sends information regarding the invoices back to SMART Contracts and SMART Project Costing. Contract Managers must enter revenue received from billings as deposits within the Accounts Receivable module. This training will be provided separately. Lesson 1: Understanding Contracts

 Understanding Contracts Processes Contracts Process Roles Agency Customer Contracts Manager - Enters, reviews, and analyzes customer contracts and understands the integration with other SMART modules Kansas Customer Contracts Viewer - Views customer contracts information only Agency Customer Contracts Maintainer – Maintains configurations to agency-maintained customer contracts tables Lesson 1: Understanding Contracts

 Lesson Summary In this lesson you have learned to: Define key terms Describe the processes and activities contained within the Contracts module List roles involved in the contracts process and describe tasks performed by each role Lesson 1: Understanding Contracts

Lesson 2 Lesson 2: Creating and Maintaining Contracts

 Lesson Objectives Explain contracts, milestones, amendments, and products Enter and activate a contract Create and manage milestones Create an amendment and understand the amendment process to update the contract Explain the Contracts/Billing Interface Use the billing worksheet Lesson 2: Creating and Maintaining Contracts

 Understanding Contracts, Milestones, and Amendments A contract consists of two components, the contract header and the contract lines The contract header contains information relevant to the entire contract A contract line corresponds to an individual product Contracts can have a status of “Pending”, “Active”, and “Closed” Lesson 2: Creating and Maintaining Contracts Header Line

 Understanding Contracts, Milestones, and Amendments Creating and maintaining contracts Contracts can be created manually using Customer Contracts link or automatically via the Grants module. We will review creating a contract manually. Amendments and updates may be made to contract while the contract is active. Lesson 2: Creating and Maintaining Contracts

 Creating Contracts A billing plan stores the schedule of billing events (when to bill) and the corresponding bill lines (what to bill) for these events. Each contract line product is tied to a billing plan, and you can associate contract lines with similar billing requirements with the same billing plan Billing plan events depict how much to bill based on a percentage of the billing plan total, and when to bill using the event status A revenue recognition plan enables you to define, administer, and maintain accounting schedules and rules for the products and services under a contract Revenue plans are contract-specific, i.e., you cannot use the same revenue plan across multiple contracts Lesson 2: Creating and Maintaining Contracts

UPK – Creating Rate-based Contracts UPK – Creating Amount-based Contracts Activity 1 – Creating & Activating Contracts Lesson 2: Creating and Maintaining Contracts

 Managing Contract Milestones A milestone is a significant event in the life of a contract Milestones can have a status of “Pending”, “Ready”, “Completed”, and “Cancelled” You can use milestones to control billing or revenue recognition in amount-based contracts. To do that, you need to link the relevant milestones to your contract For some products, the milestone template defaults on to the contract Set the Milestone Status field to “Ready” Milestone Conditions must be met Lesson 2: Creating and Maintaining Contracts

Activity 2 – Managing Contract Milestones Lesson 2: Creating and Maintaining Contracts

 Creating Amendments A contract amendment is a change made to an active contract where you modify the original terms and conditions of the contract Amendments can have a status of “Pending”, “Ready”, “Complete”, or “Cancelled” This is a new version of an active contract that you can edit and modify Reasons to amend a contract Addition or subtraction of overall contract and contract line amounts Addition of new lines to the contract Modification of billing and revenue events in “Pending” status Lesson 2: Creating and Maintaining Contracts

Activity 3 – Creating Amendments Activity 4 – Maintaining Contracts Lesson 2: Creating and Maintaining Contracts

 Understanding the Contracts/Billing Interface The Contracts Billing Interface process is divided into two major parts: rate- based contract line billing (controlled by SMART Project Costing), amount- based contract line billing (controlled by SMART Contracts), After the Contracts Billing Interface process is run as a batch process, agencies use the billing worksheet to review and approve or delete temporary bills created by the process Lesson 2: Creating and Maintaining Contracts

 Understanding the Contracts/Billing Interface Lesson 2: Creating and Maintaining Contracts

Activity 5 – Understanding the Contracts/Billing Interface Lesson 2: Creating and Maintaining Contracts

 Lesson Summary In this lesson you have learned to: Manually create and activate a contract Manage contract-specific milestones Update a contract using amendments Approve bills through the billing worksheet Lesson 2: Creating and Maintaining Contracts

Lesson 3 Lesson 3: Processing Prepaid Amounts

 Lesson Objectives Define a prepaid amount and associate it with a contract Define utilization criteria and review prepaid utilization history and prepaid activity for a contract Set up prepaid billing and deferred revenue distribution for a contract Lesson 3: Processing Prepaid Amounts

 Understanding Prepaids Processing prepaid amounts Customers can prepay for rate-based goods and services. The prepaid amount can be applied to one or more rate-based contract lines. In addition, the amount can be used against all or a portion of the billing activity for the applicable contract lines. Lesson 3: Processing Prepaid Amounts

Activity 6 – Processing Prepaid Amounts Activity 7 – Processing Prepaid Amounts Lesson 3: Processing Prepaid Amounts

 Lesson Summary In this lesson you have learned to: Explain prepaid amounts, including types, related statuses and processing Define a prepaid amount and associate it to a contract line Define utilization criteria, view prepaid utilization history, and monitor prepaid activity Set up Prepaid Billing Lesson 3: Processing Prepaid Amounts

Lesson 4 Lesson 4: Closing Contracts

 Lesson Objectives Close a contract Lesson 4: Closing Contracts

 Closing Contracts Setting a contract status to “Closed” requires the following Revenue and Billing plans must be at “Completed” status Rate-based vs. Amount-based Manually set the contract status to “Closed” Lesson 4: Closing Contracts

Activity 8 – Closing Contracts Lesson 4: Closing Contracts

 Lesson Summary Close a contract Lesson 4: Closing Contracts

Closing the Day

 Use the following resources SMART Training Website  SMART Training Team  Contact us at SMART materials  Review, Review, Review your SMART materials after training!! Resources Available

 Questions

 Evaluation Please fill out the evaluation for today’s instructor led training session!

Thanks for coming and participating today!