Change in the lease rate during the operation of the contract

Introduction

The document describes the method of changing the lease rate during the contract. In some cases, the supplier changes the terms of the lease during the performance - usually the lease rate changes. This document shows how to modify the data in the system to keep the entire history of calculating the lease with the old rates, but at the same time enable the performance of the contract with the new rates.

A description of the change you need to respond to

During construction, the supplier changes the lease rate for the scope of the contract being implemented. The material that is on the construction site will be calculated on the basis of the rate of 1.3% instead of 1% from July 1st. All settlements for the lease from July are to be calculated according to the new rate and the old settlements (until June 30) according to old rate.

Method of implementation

We create new accounts and work orders (structural elements). For new orders, we set the lease rate to 1.3%. Using the MM operation (transfer between warehouses), we transfer material from old accounts to new ones with the date of June 30 (the last day of the lease).

Steps:

Change the name of the old account in the configuration, e.g. by adding information about the 1% rate

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Figure 1. Editing an account in the view of ledger accounts

In the configuration, we add a new account with the same name as the old account. We create accounts that will match the new lease rate.

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Figure 2. Editing a new account

We close the old order, which was responsible for the execution of the contract in accordance with the old lease rate and the old billing account. We change the status of the order to closed or canceled. You can also archive them - then they will not appear on the list of orders by default (unless you mark this option in the filter)

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Figure 3. Closing the order

We add a new order that will carry out work with a new lease rate. It is important to add a new account created in point 2 as a checking account.

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Figure 4. Creating a new order via the contract view

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Figure 5. Definition of an account in a new order

We change the name of the old order. We do this to avoid accidentally selecting an old order as a billing element in the future.

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Figure 6. Rename an old job

As a result, we have two accounts/storage locations - one old and one new image::images/construction_change_lease_rate_on_ongoing_project-c0737.png[]

The purpose of this activity was to prepare new accounts and work orders to store information as part of the new settlements and to modify the old accounts/work orders accordingly, which will store all information regarding the old settlements.

Stock transfers

In order to complete the activities of changing the lease rates, we still need to make changes to the stock levels. After completing the previous steps, all new order/delivery operations will be handled by the new accounts/new lease rates.

In contrast, there is still material in the old accounts/warehouses that should be billed on a specific date with the new lease rates. To do this, it is enough to prepare a warehouse transfer for items in warehouses that were created before the date of the change in the lease rate.

To do this, we carry out transfers between related warehouses. We select the material from the old account and call the transfer MM/

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Figure 7. Transfer

We select a new account in MM AND set the transfer date to the end date of the old lease rates

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Figure 8. Generation of the transfer document

As a result, we get a transfer of quantities between warehouses. Warehouses after changes: we have 0 quantities in one place and transferred items in the other.

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Figure 9. The state of warehouses after the transfer

The date of the transfer must also take into account the billing mechanism with the supplier. Depending on the settings for calculating the lease validity date, we set the appropriate dates for documents.

Lease calculation settings for the contractor, which we define in the contract for this instance, indicates that the last day of the lease is included in the lease value. Therefore, if the start date of new accruals is July 1, we create transfer documents with the date of June 30 so that the lease is calculated accordingly.

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Figure 10. Lease rates

Finally, we edit a new order, set a new lease rate and supplier

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Figure 11. Edition of formwork data

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Figure 12. Tenant and provider setting

Effect

We have history for old jobs as calculated for 1% and new accounts/structural elements are used to calculate the lease with the new rate and have the current construction status. You can continue all activities with full history and correct settlement of all costs also when generating historical data.

Howto was created based on system version 1.20.0.0 (01/2023) and presents functions that may not be available on your system. Ask AMAGE about providing this functionality.

Due to ongoing development of the system, some screens or configuration files may look slightly different, but will still retain the full functionality described here. This does not affect the core functionality described in this document.