Contract Terms specify what conditions the customer agrees to meet.
Once a Contract has been assigned to a customer, specific products or services must be associated with a Contract Term. If a Contract is assigned to a service, the products assigned to that service can be associated with a Contract Term, but no additional services can be associated. See Contract Associations.
There are four types of Contract Terms. A contract must have at least one Contract Term and can include up to one of each type. Each of the Contract Terms has at least one Penalty associated with it.
Minimum Guarantee
The Minimum Guarantee contract term type is based on usage or product charges. It may be a minimum dollar amount of usage, a minimum number of occurrences, or a minimum number of minutes that the customer has agreed to use in each bill period.
Minimum Guarantee type will have Contract Term Details defined in the Product Catalog.
Minimum Guarantee type terms (and their penalties) can be prorated, if the contract is set up as prorated in Product Management.
Minimum Guarantee terms have services associated with them. See Contract Associations.
Valid Penalty types are Fixed Fee, Minimum Fee, and Multiplier Fee. See Penalties.
Maximum Guarantee
The Maximum Guarantee contract term type is based on usage or product charges. It may be a maximum dollar amount of usage, a maximum number of occurrences, or a maximum number of minutes that the customer has agreed not to exceed in each bill period.
The Maximum Guarantee contract term type can have Contract Term Details. Products are considered only when the term unit is Currency.
Maximum Guarantee terms have services associated with them. See Contract Associations.
Valid Penalty Types are Fixed Fee (can be used with all units) and Multiplier Fee (limited to Minutes and Occurrence units). See Penalties.
Term Commitment
The Term Commitment contract term type is based on length of service. The Value and Units are the same as the Contract Duration and Duration Type of its Contract Specification.
Term Commitment term types cannot include Corporate Children.
If a contract with a Term Commitment term is assigned at the service number level, and the service number is disconnected before the end of the contract, the contract is broken and the penalty is applied.
Term Commitment terms have products associated with them. See Contract Associations.
Valid Penalty types are Fixed Fee and MRC Multiplier Fee. See Penalties.
Service Count Commitment
The Service Count Commitments contract term type is based on the number of services that the customer has agreed to have active for the length of the contract. A contract with this contract term type can be assigned at the customer level only, not at the service level.
The Service Count Commitment term type can have services associated with it. See Contract Associations.
Valid Penalty types are Fixed Fee and Multiplier Fee. See Penalties.