Master Contract

Master Contracts

Purpose

The Master Contract functionality is designed to streamline the management of multiple contracts of single customer. It serves as a central hub where contracts, sharing the same financial product, customer, originator, and supplier, can be efficiently managed.
Key features of the Master Contract functionality include:
Creation of Multiple Contracts: Users can generate multiple individual contracts from a single master contract.
Group Management: Contracts can be organized into distinct groups within the master contract, allowing for separate management of each group.
Document Generation: Instead of generating a document for each contract, users can create various documents for entire groups.
Approval Process: Groups can be submitted for approval or reopened for resubmission.
Customer Modification: The customer associated with all contracts can be updated through the master contract.
Document Tracking: The master contract allows for the tracking of documents on a per-group basis.
This functionality aims to simplify and enhance the contract management process, providing a more organized and efficient system for leasing providers.

1. Leasing Setup

Begin by navigating to the Leasing Setup. Once there, locate the Numbering tab. In this tab, you will need to create a new Number Series. After creating the series, you should assign it to the Master Contract Nos. and Contract Group No. Series fields.

Figure 1. Leasing Setup

2. Financial Product Setup

Navigate to the Financial Product Setup. In the Workflow tab, there is a group called Master Contract Application Assessment. Assign a workflow template to the Template for Assessment field. Workflow Step for Approval and Workflow Step for Declined fields should be assigned their respective workflow steps.

Figure 2. Financial Product Setup

3. Status Setup

Navigate to Status Setup and set up statuses for Master Contract like in the picture below. Field Target Table ID should have a value 17021279 (number of Master Contract table), Trigger Field No. should be set to 15. Status Field No. should be set to 16.

Figure 3. Status Setup

4. Documents Selection Setup

To start working with documents in master contracts, document templates must be set up first for each financial product. Navigate to Documents Selections page and assign document templates to these fields:
Master Contr. Gr. Contract Template – template for master contract agreement.
Master Contr. Gr. Purch. Agr. Template – template for master contract purchase agreement.
Master Contr. Gr. Repurch. Agr. Template – template for master contract repurchase agreement.
Master Contr. Gr. Delivery Act. Template – template for master contract delivery act.

Figure 4. Document Selections Setup

5. Creating Master Contract

Master Contracts can be created in two ways: by creating a new master contract or by navigating to application card and using action Create Master Contract. To create a new master contract, navigate to Master Contracts by using actions in the Role Center page or by using Search functionality.

Figure 5. Master Contracts in Role Center

Once in the Master Contracts list, use New action to create a new master contract.

Figure 6. Master Contract List

In the Master Contract Card page fill in mandatory fields:
Description – brief description of the contract.
Contract Date – date of the contract.
Customer No. – select already existing customer from the list.
Contact Person – enter contact person for the customer if the field is empty.
Financial Product – select financial product from the list.
Originator No. – select originator from the list.
Originator Type – select originator type from the list if the field is empty.
Originator Brand – select originator brand from the list if the field is empty.
Originator Salesperson No. – select originator salesperson No. from the list.
Supplier No. – select existing supplier from the list.
Supplier Salesperson No. – select supplier salesperson from the list.

Optional fields:
Contract Inception – date of contract inception.
Public Tender Code – code of public tender.
Credit Line No. – select credit line no. from the list.
Combine Invoices – select invoices should be combined or separate for contracts.
Officer – officer, responsible for the master contract, code.

Figure 7. Master Contract Card General Tab

To create master contract from already existing application, navigate to application card and use action Create Master Contract. It will create a master contract with the information from the selected application: financial product, customer details, originator details, supplier details. This action can only be used if application does not have Contract document generated and does not belong to a master contract.

Figure 8. Application Card, Create Master Contract Action

6. Creating Applications

1. Creating a New Application: To create a new application from the master contract, follow these steps:

• Navigate to the Contracts subpage within the Master Contract Card.
• Use the “Create New Application” action.

2. Editing Application Details: Once the first application is created, the application card page will open. You can edit additional details as needed.
3. Copying Similar Applications: If you require multiple similar applications:

• Select an existing application from the list on the Contracts subpage.
• Use the “Copy Application” action.
• Specify the desired number of applications you want to create.

Figure 9. Contracts Subpage, Create New Application and Copy Application

7. Managing Contracts

7.1. Creating and Assigning Groups

In master contract, applications and contracts should be managed in groups. There are 2 ways to create a group:
1)Using action “Assign Selected Contract to Group”.
2)Using other Group actions from the Contracts subpage.
To Create a group using “Assign Selected Contract to Group” action, select one or multiple applications from the list and then use the action.

Figure 10. Contracts Subpage, Assign Selected Contracts to Group Action

Setup Wizard: When the setup wizard page opens, you will see the first step. Choose one of the following actions for the selected applications:

• Create New Group
• Add to Existing Group

Click the Next button to proceed. Follow the setup wizard to completion.

Figure 11. Group Wizard

Note that the Contracts subpage “Groups” field was updated with abbreviation of the group that was created or assigned. If you need to review contracts that are in the group, click on the flowfield “Number of Contracts” in the Groups subpage.

Figure 12. Groups Subpage

Contracts that belong to selected group can also be review in the Group Contracts factbox:

Figure 13. Group Contracts Factbox

Once the group is created, there are several things that can be done:

• Group can be submitted for approval.
• Group can be opened for resubmission.
• Documents can be created for the group.

7.2. Creating and Managing Documents

To create documents for the group instead of each contract, in the Groups subpage select a group that you want to create documents for, navigate to Create Documents action tab select one of the actions:
Contract Agreement - creates contract document with template selected in Documents Selections
Repurchase Agreement - creates repurchase document with template selected in Documents Selections
Purchase Agreement - creates purchase document with template selected in Documents Selections
Delivery Act - creates delivery document with template selected in Documents Selections
Selected Documents… - allows user to select document template from the list and then creates a document with selected template.

Figure 14. Contracts Subpage, Create Documents Actions

Created documents can be found in Master Contract Card Documents subpage or in the Group Documents factbox of the selected group. By default, document description will contain Group Code to know which document belongs to which group.

Figure 15. Documents Subpage and Group Documents Factbox

Additionally, these documents can be found on every contract that belongs to the group. Navigate to contract or application card Documents subpage to review these documents. Contract documents subpage will show documents related to Master Contract, Contract Group (or multiple groups) and Contract.

Figure 16. Contract Group Documents in Application Card

7.3. Submitting Group for Approval

7.3.1 Automatic Submission for Approval

Master contract allows easier submission for approval for multiple contracts, instead of approving them one by one. There are 2 ways multiple contracts can be submitted for approval:
Creating group and then using action “Submit for Approval” in Groups subpage.
Selecting multiple contracts and using action “Create Group & Submit for Approval” in Contracts subpage.
Let’s say the group is already created, but there is a need to submit only 2 out of 3 contracts. Select contracts that need to be submitted for approval in Contracts subpage and use action “Create Group & Submit for Approval. Notice a few things:
A new group was created with standard description and abbreviation “APPROVAL”.
Group abbreviation was added to Groups field in Contracts subpage to selected contracts.
One of the contracts was approved, while the other was referred for further review. The reason for the referral was that the financed amount for one of the contracts exceeded the limit that the decision tree could automatically approve.
Workflow was created for the contract group, and it can be seen in Active Workflows field.

Figure 17. Submit for Approval Functionality

7.3.2. Referred Submission for Approval

In case all contracts could not be approved automatically, this has to be done by the officer. To easily access workflow card, navigate to field Active Workflows in Groups subpage and click on the workflow.
In the Assessment Workflow tab, you will find general information about the workflow. Notice fields Master Contract No. and Contract Group Code. These fields indicate for which group this workflow is created.
Group Summary tab contains fields:
Originator – originator of master contract.
Customer – customer of master contract.
Assets – list of assets which belong to the contracts in this group.
Programs – list of distinctive programs of the contracts in this group.
Credit Line No. – credit line no. if it was set on the master contract.
Contract Currency – currency of master contract.
Total Capital Amount – total capital amount of contracts in this group.
Total Downpayment – total downpayment of contracts in this group.
Total Amount Financed – total amount financed of contracts in this group.
Total Residual Value – total residual value of contracts in this group.

Figure 18. Workflow Card General Information and Group Summary

Contracts subpage shows all contracts in the group, Contract Group Documents shows all documents which belong to the group only and Workflow History shows history of current workflow.

Figure 19. Workflow Card, Contracts and Documents

After workflow information was reviewed, follow standard workflow procedure to approve or decline all contracts in the current group

Figure 20. Workflow Card, Approve and Decline Actions

When the workflow is approved, go back to the master contract card, and check the status of the contracts in the group. All contracts should be Approved. In the Groups subpage notice that there is no active workflow in the field Active Workflows. If the workflow is declined, contracts status will change to Declined.

Figure 21. Approved Contract

7.4. Open Group for Resubmission

If there is a need to open contracts for resubmission again, it can be done in 2 ways:
Creating group and then using action “Open for Resubmit” in Groups subpage.
Selecting multiple contracts and using action “Create Group & Open for Resubmit” in Contracts subpage.
To open group back for resubmission, navigate to Groups subpage and use action “Open for Resubmit”. Notice how contracts in the group you chose to resubmit changed statuses to Re-Submission. After all the changes necessary are made for the contracts, they can be submitted for approval following the Submitting Group for Approval process.

Figure 22. Re-Submission Process

8. Changing Customer

To change customer for all contracts, including master contract, create a group which includes all contracts in the master contract following Creating and Assigning Groups process. Then use action “Change Contract Customer” in Groups subpage.

Figure 23. Change Contract Customer Action

Change Master Contract Customer card has 3 groups:
Current Customer – contains information about current customer on master contract.
New Customer Data – contains information about new customer.
Direct Debit – contains information about direct debit payment, only visible if payment method is direct debit.
In the New Customer Data group you will find these fields:
Customer No. – number of new customer for the contracts.
Customer Name – name of the customer, field is not editable.
Customer Payment Method – list of payments methods for the customer.
Effective Date – date when customer change will happen. This field is not editable and by default has a date of workdate.
Direct Debit group fields:
DD Bank Name – name of the bank, use assist edit to select bank from the list or create new one.
DD Bank Branch No. – branch no. of the bank.
DD Bank Account No. – bank account number.
When new customer information is filled in, use action Confirm to change customer for master contract and all contracts in the master contract.

Figure 24. Change Master Contract Customer Card

Notice that customer information was changed in the General group of Master Contract card.

Figure 25. Customer Change in Master Contract

Customers were also changed in all contracts:

Figure 26. Customer Change in Contract