Defining Contracts

Service Contracts in Commit define the service terms you provide to your customers. Commit's Contract records help you manage your service contracts and track their status (Block of Time, Block of Money, etc.).

The Contracts tool is optional. If you don't have special contract terms with your customers and you bill per activity performed (such as labor, expenses and parts), you can use the default Global System Contract that is automatically created for each Account, and avoid creating and managing contracts yourself.

 
When starting to work with Commit, it is advisable to start with the default system contract and only then begin defining the specific contracts for each service agreement.
 
It is recommended to read about using Contracts in the Introduction to charges and Billing under Using Contracts before starting to work with the specific Contracts for the first time.

 
Contracts Custom Pricing

Custom Pricing lets you set unique prices for different Accounts or Contracts. Once you define custom prices for an Account or Contract, these prices will be used automatically for every charge logged for Accounts or Contracts.
When should I use Custom Pricing?

By default, the standard employee hourly rates and item prices will be used automatically.
You should use custom pricing only when you want to use a different set of prices or rates for a specific Account or Contract.
Account level vs. Contract level Custom Pricing
Custom Pricing can be defined at the Account level or Contract level.
When custom prices are defined for the Contract, the Account's custom pricing settings are ignored, and the Contract's price settings are used.
You can read more about Custom Pricing in the Introduction to Billing, under Custom Pricing section.

Contracts-price Charges

Contract-price Charges provide an easy-to-use and innovative way to ensure that clients get billed for the service contracts you have signed with them, whether they are recurring contracts or ad-hoc contracts/projects.

In the Commit system, a “Contract-price Charge” is a charge for an amount agreed upon in a contract. For example, let’s say you sign a 50-hour (block-of-time) contract with a customer for a price of $1,000. You can then create a Contract-price Charge to represent this amount ($1,000) in the Commit system. A Contract-price Charge only represents an amount listed in a contract—it does not represent a fee for specific work performed under a contract.

It is recommended to review the Contract-price Charges section of the Introduction to Billing user guide, in order to receive a better understanding of this feature.