Contract Configuration reference data

Manage Contract Type reference data

A Budget Process Owner or Admin can define rules to control how contract types are accounted for in OpEx budgets. You can specify that a given contract type always accrues to a specific OpEx account with a specific amortization method.

1. Enable the Contracts and VAT features in the Company Profile (see Edit the Company Profile.
2. In the navigation menu, select Configuration > Reference Data > Contract Type.
3. Select in the top right corner of the table, select Export > Export All.
4. Update the data table values as required in the .csv file:

   • Contract Type - Provide a name for the combination of the general ledger account and amortization method. Meaningful contract type names can help Cost Center Owners allocate their contract expenses to the correct general ledger account codes.

     For example, contract types with names that are meaningful to the Cost Center Owner, such as Hardware Maintenance, can all map to the same Vendor Services general ledger account code.

   • Contract Amortization Method - Specifies how your contract will be amortized over the life of the contract. The amortization of contracts allows you to spread costs over the course of the life of a contract instead of accruing the full amount of the contract on the start date of that contract. Amortization Start Offset delays the beginning of amortization, changes the number of periods, and keeps the same end date for contracts. Because it delays the start date, the number of periods in the amortization schedule change. However, the final period of the schedule does not change. All calculations for each day are based on the standard Gregorian calendar. The following methods are available:
     • Manual Amortization - allows you to manually import, enter and edit the per period amortized expense amounts for a contract.
     • Straight Line Even Periods - (Default method) Amortizes expenses evenly for each period. The amortization period is defined by the start and end month of the contract.

     • Straight Line By Duration - Amortizes expenses evenly for each period. The amortization period is defined by the number of months in the contract.

     • Straight Line Prorate First and Last - Amortizes equal amounts for periods other than the first and the last period. For the first and last period, amounts are prorated based on the number of days in each period.
     • Straight Line Using Calendar Days - Amortizes amounts individually for each period based on the number of calendar days in each period.
   • Account - Specifies the general ledger account code where the contract will accrue. The available options are provided by the Chart of Accounts reference data.
5. Now, Configuration > Reference Data > Contract Type, and then import the updated .csv file

Contract amortization example

The following example uses these starting values:

• Amount - $400.00
• Start Date - August 20, 2017
• End Date - December 19, 2017
• Duration calculated using month only (used by Even Periods method) - 5 months
• Duration calculated using month and day (used by Duration method) - 4 months

Manage VAT Rates reference data

Once the Budget Process Owner or Admin enables the contract planning and VAT features, the Apptio planning application can calculate a value-added tax (VAT), also known as a goods and services tax, for contracts and manage the VAT Rate. See Edit the Company Profile. The VAT Rate (a built-in dimension) specifies the taxed percentage applied to each location. VAT is based on the contract line-item Location value in reference data. Therefore, before importing VAT Rates reference data, you must update the Location reference data to include all locations for which you plan to enter a VAT Rate. See Reference data dimensions.