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--- setting_up_a_new_contract [2025/06/18 18:11] – tina.robles
+++ setting_up_a_new_contract [2026/08/13 19:16] (current) – tina.robles
@@ Line 81: / Line 81: @@
 {{:pasted:20240802-132302.png}}
-**Contract Title:** Enter in a Title for this contract.
+**Contract Title:** Enter in a Title for this contract.  Choose a contract title that matches how the partner or parent entity will reference the program on submitted claims.
+**Best Practices for Contract Titles**
+**Distributor-Direct Programs**: Include the distributor's company name and location (e.g., Ben E. Keith Little Rock Marketing Program or Ben E. Keith Little Rock Fall Foodshow).
+**Indirect Operator Programs**: Align the title with the submitting entity. If an operator operates under a parent company that handles billing, reference the parent company to ensure smooth billback processing (e.g., use Darden instead of Olive Garden if Darden submits the claim).
+**Omit Dates for Renewable Programs**: Avoid putting years or dates in the title (e.g., use Ben E. Keith Little Rock Marketing rather than Ben E. Keith Little Rock 2022 Marketing). Retaining dates causes confusion when agreements renew, and system searches automatically match billbacks using both the specific date range and the contract name.
 **Contractee:** To select a Contractee, click the search button to open the Company Search.
@@ Line 344: / Line 352: @@
 __Contract Management: Key Functional Tabs__
-**Products**
+__**Products**__
 Purpose: Input SKUs/Product IDs associated with the contract
-**Lumpsum**
+__**Lumpsum**__
 Function: Record event-based financial allocations
 Application: Ideal for transactions not requiring specific SKU tracking upon claim submission
+Remaining Balance: Contract lump sum amount minus the paid claims against the lump sum
-**Distributors**
+__**Distributors**__
 Relevance: Applicable to contracts with deviated rebates (indicated by blue columns on the product tab)
 Purpose: Designate eligible distributors for the contract
-**Exclusions** (Autopay contracts only)
+__**Exclusions** (Autopay contracts only)__
-Function: Specify partial or complete exclusions of contracted business for designated companies
+__Purpose__: Exclusions modify standard contract rates for specific entities within the contract, accommodating tiered memberships or existing manufacturer agreements. These adjustments can range from reduced rates to complete payment exclusions.
+**Important**: Companies in the exclusion list must be either:
+The contractee (primary contract holder)
+A distributor that falls under the contractee's group (if the contract is set up as a company group)
+What Are Exclusions? Exclusions allow you to define situations where companies under a contract that normally receive the standard rate (X rate) instead receive a reduced rate or no earnings for some or all products. This accommodates scenarios where certain contractees or distributors require different payment structures.
+Example Scenario: In buying group contracts with tiered memberships, some distributors may receive 50% of the standard contract rate, while others may be excluded from payments entirely due to pre-existing manufacturer agreements.
+__Configuration Process__
+**Company-Level Exclusions:**
+  * Use the filter tools to locate the company
+  * Select and drag the company row to the grid
+**Specific Exclusions:**
+  * Company-Product: Select both company and product rows
+  * Company-Product Grouping: Select company and relevant product group
+  * Drag selected combinations to the grid
+**Exclusion Configuration Results**
+Upon successful entry, the grid will display:
+  * Company details
+  * Product information
+  * Percentage adjustment fields for each entry row
+**Rate Reduction Calculation Guide**
+The entered reduction percentage decreases the standard contract rate proportionally.
+Example:
+  * Standard Contract Rate: 4%
+  * Desired Rate: 3%
+  * Required Reduction: 25%
+Formula: To achieve a lower target rate, enter the percentage reduction that will decrease the standard rate to the desired level.
+__**Backouts** (Autopay contracts only)__
+__Purpose:__ Backouts reduce earnings for direct contractees under a direct deal by subtracting volume claimed under indirect contracts set up with exclusion companies (operators). This mechanism ensures accurate financial
+reconciliation across multiple agreements and prevents double-payment scenarios.
+**Important:** Contractees in backout configurations must be indirect (Operator) customers.
+What Are Backouts? Backouts adjust earnings on the current contract based on volume claimed under separate contracts, preventing double-payment scenarios when the same volume is claimed across multiple agreements. The system calculates reductions by identifying volume purchased by direct contractees that has already been claimed through indirect contracts with excluded operators.
+Scenario Example: USF Corp contract backout for Outback Corp on cheese products:
+  * Any cheese volume claimed on Outback billbacks by USF distributors
+  * During the USF Corp contract period
+  * Will be deducted from earnings on the USF Corp contract
+This ensures USF Corp doesn't receive duplicate payments for the same cheese volume claimed under both their direct contract and the Outback indirect contract.
+__Configuration Process__
+**Company-Level Backouts:**
+  * Utilize filter tools to locate the relevant company
+  * Select and drag the company row to the grid
+**Specific Backouts:**
+  * Company-Product: Select both company and product rows
+  * Company-Product Grouping: Select company and applicable product group
+  * Drag selected combinations to the grid
+**Backout Entry Results**
+Upon completion, the grid displays:
+  * Company information
+  * Product details
+  * Percentage adjustment fields per row
+**Backout Rate Calculation Guide**
+The entered reduction percentage decreases the standard contract rate proportionally for backout calculations.
+Example:
+  * Standard Contract Rate: 4%
+  * Desired Backout Rate: 3%
+  * Required Reduction: 25%
+Formula: To achieve the target backout rate, enter the percentage reduction that will decrease the standard rate to the desired level.
-**Backouts** (Autopay contracts only)
+Note: The reduction percentage represents the proportion by which the original rate should be decreased, not the final backout rate itself. This ensures accurate adjustment of earnings based on cross-contract volume claims.
-Purpose: Define percentage-based payout reductions for specific company/product combinations
-**Client Defined Fields**
+__**Client Defined Fields**__
 Nature: Customizable fields as per manufacturer requirements
 Function: Capture contract-specific data points
-**History**
+__**History**__
 Purpose: Comprehensive log of all contract modifications
-**Notes & Attachments**
+__**Notes & Attachments**__
 Function: Repository for original contract documentation and internal communications
 Users: Contract creators and approvers
-**Letters**
+__**Letters**__
 Content: Contract type-specific correspondence options
 Availability: Enabled post-contract save
 Note: Varies by manufacturer
-**Contact**
+__**Contact**__
 Purpose: Track customer communication details for future reference
 Fields: Email, Name, Phone Number
 Status: Optional information
-**Exposure**
+__**Exposure**__
 Content: Projected exposure, actual figures, and stacked reporting data
-**Claims**
+__**Claims**__
 Function: Display all claims generated under the current contract

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