Create Customer Contract QRG

Submitted by hep7p on

Updated July 1, 2022

Create Customer Contract Overview

This Quick Reference Guide (QRG) is designed to walk a Customer Contract Specialist through the Create Customer Contract task for an existing customer in Workday. Customer Contracts in Workday allow you to systematically manage contract terms and create invoices for approved contracts. Creating the contract is the first step. Next step - set up the billing schedule.

Hint: You must have an existing customer in the system to create a Customer Contract for them. Refer to the Create Customer QRG for the steps to create a customer in Workday. 

Note: The Customer ID will always start with “CST-“ and the Customer Name has the Customer ID in parentheses at the end of the name. Ex. Dragonfly Inn (CST-00893). If you need to find the customer number, you can use the Find Customers with Facet Search report.

Procedure

On the Workday Home screen:

  1. Type Create Customer Contract in the search field.
  2. Select the Create Customer Contract task from the search results.

On the Create Customer Contract screen:

  1. Select the Company to which the Revenue will be recorded.
  2. Select the Customer from the drop-down list or type the Customer name or number for whom you want to create a contract.

Note: The Customer Name will always have the Customer number at the end. Ex. Dragonfly Inn (CST-00893).

Caution! - If an entity is both a Customer and a Sponsor, both records will populate in this list. Be sure to select the Customer record, with the (CST-XXXXX) at the end. For example:  Albemarle County Public Schools (CST-00346)

  1. Select the relevant Contract Type from the drop-down list.
  2. Select the appropriate radio button:
    • Create Blank Customer Contract if a customer contract does not yet exist.
    • Copy Details from Existing Customer Contract if a similar contract type for the customer already exists.
    • Copy from Contract Template if an approved contract template exists.
  3. Click OK to proceed.

 

On the second Create Customer Contract screen:

Under the Contract Information section, complete the required fields.

Note: Company, Sold-To Customer, Bill-To Customer, Currency, and Contract Type will auto-populate based on the selection made on the last screen. 

  1. Enter an Effective Date. It will auto-populate with the current date. Select the date from which you want the contract to be effective.

Note: Contract Signed Date is an optional field. Select the Contract Signed Date to indicate the date of agreement as needed.  The On Hold check box is optional. Select the box to indicate that the contract is on hold. 

Under the Contract Detail section, enter the details as needed.

  1. Enter the Contract Name.
  2. Enter the Contract Description.

Note: All fields in the Contract Detail section are optional. It is easier to find the contract in reporting if you enter a Contract Name and Description. 

Under the Contract Amounts and Balances section, enter the required information.

  1. Enter the Contract Amount.  The Contract Amount must be equal to the total amount of all contract items.

Under the Additional Information section, complete the required fields.

  1. Enter the Designated worktag. The Fund will default. Function will default but it is not required.
  2. Enter the Cost Center. The Business Unit will default, if applicable.

Note: The PO Number, Salesperson, and all optional FDM worktags fields are optional. 

Note: Leave Default Tax Code, Discounts and Premiums Applied, Gift, and Grant fields blank. 

In the section at the bottom of the page:

  1. Select the (+) icon to add a Goods and Services line.
Workday screenshot - see step 14

 

In the Line Details sub-tab:

  1. Select a Revenue Category.
  2. Select a Line Type from the drop-down list:
    • Fixed Amount - Agreed upon amount
    • Variable Amount - Non Project - Variable amount.
  3. Enter a Line Item Description.
  4. Enter a Quantity.
  5. Select the appropriate Unit of Measure.
  6. Enter the Unit Price.

In the Notes sub-tab:

  1. Enter an Invoice Memo Line. This memo appears on the resulting accounting journal once invoices associated with the contract have been generated.

Note: All fields in Usage Based, Projects, Contract Notes and Billing tabs are optional.  All fields in Revenue and Billing, Renewal Terms, and Additional Information sub-tabs are optional. 

Hint: If you want to monitor expiring contract lines, you need to check Renewable in the Renewal Terms sub-tab. This does not cause an automatic renewal.

 

Workday screenshot - highlights Line Details and Notes from steps 15-19

 

  1. Repeat steps 14-21 as needed.
  2. Click Submit to submit the contract.

 

You have successfully completed this task. It will now be routed based on the workflow.