Use this activity to add, modify, or delete contract revision line items.
When a new line item is added, the calculation type, mark up type, and valuation method will be copied to the new line, while the project ID, mark up work, mark up material, mark up miscellaneous, sales part site and report code will not be copied. You can override some default values, if required, in the respective override fields. Note that if a default value is modified on the contract, while a line item has a value for the same in the override field, the change you made will not affect the line item. The values in the override fields will take precedence over the values in the general fields. Therefore the change will only effect items that do not have an override value.
If the valuated item is not a work item or item to be consumed, it is recommended to use a separate line item for the stored material value to prevent mixing the value of the item and the stored material of the same item.
When a line item is modified, only the current revision of the item will be effected.
When deleting a contract line item, the line item is completely removed only if the contract revision is in the Planned status. If not, although the line item will be removed from the Items section, it will be displayed on the Deleted Items sections instead. If Application for Payment is used and applications containing the deleted item exist, the item cannot be completely removed from the contract.
When adding and modifying line items, if Applications for Payment is used and applications in the Planned status exist, it is recommended to refresh the application with the latest contract information.
When an application for payment is created, the currency, supply country, unique project and billing sequence of the item are used to create a unique application. Billing sequence is a numeric value that you can assign to items that you wish to be grouped together, when you create the application for payment for them. A billing sequence can be added to an already existing line item only if it has not been included in any application for payment.
Notes:
If the item is measured in quantities, the calculation
method should be set to Per Unit or Rate Only. If the item depends
on a fixed value the calculation method should be set to Fixed. There
is no functional difference between Per Unit and Rate Only, but
there is a fundamental difference from a contractual standpoint. Rate Only
means that the quantity is only an estimate and is not contractually binding
(e.g. time and material consultancy days), whilst Per Unit would
normally imply that the quantity is fixed and should not be exceeded.
When calculation type
is Sales Value, the value in the
Sales Value field is automatically calculated based on
the quantity and sales rate entered. If the calculation method is Fixed
then you can enter a value in the Sales Value field directly.
When calculation
type is Cost Value, the value in the
Cost Value field is automatically calculated based on quantity, cost
rate and the cost rate factor. If the calculation method
is Fixed, then you can enter the cost value and markup.
The sales value is automatically calculated based on the values in the Cost
Value and Markup fields. The markup value will vary according to
the item type, which can be pre-defined, and can be retrieved accordingly.
To add contract revision line items:
To modify or delete line items: