Our platform provides admins with the ability to set limitations in regards to length, deposit, discount and notice periods when creating new or editing existing contract agreements. If any of these limits have been exceeded, and the user setting up the contract does not have approver permissions, instead of ‘Add and Approve’ they would only be able to send the contract for approval to a preselected group of users with ‘Approver' permissions.
To be able to benefit from this feature, you will need to navigate to Settings/Platform/Contracts and enable the option ‘Approval Process’. Once enabled, more options will appear allowing you to set who will have approver access, as well as the option to customize the approval rules themselves. Please note, that although unified, some of the contract approval rules have different behavior for the different types of contracts. Currently, the available approval rules are:
1. Require approval when the discount exceeds XX %
This option is applied to each of the contract types as follows:
- License and Lease Agreements: When adding a resource, if the entered price is more than 20% cheaper than the list price, or if the selected discount option exceeds 20%, the user creating or editing the contract will not be able to approve it and will have to instead send it for approval. For these contract types this approval rule only applies to resources’ price and does NOT apply to plans’ price. In addition, if a resource’s list price is 0, it will trigger the rule and prompt the user to send the contract for approval.
- Membership Agreements: As membership agreements do not have resources, this rule applies to the selected plans in the same way it is applied for the resources in the other agreements. Please note, as the memberships can be created without an end date, if the agreement does not have an end date this rule will not apply, regardless of the price.
2. Require approval when the notice period is less than XX month(s).
This option will trigger when the user has set a notice period that is less than the chosen approval rule minimum. Once enabled, this rule works for all contract types equally and the Membership Agreement’s end date scenario described above does not alter the behavior of this approval rule.
3. Require approval when the contract length is more and/or less than XX month(s).
These two rules are applied to each contract type as follows:
- License and Lease Agreements: When either of these options is enabled, if the contract length does not satisfy the chosen limitations, the user creating or editing the contract will be prompted to send it for approval. Please note that a 12-month contract starting on September 20th, for example, will have and an end date of September 19th the following year. If the minimum rule has been enabled and the contract’s end date is changed to September 18th instead of the 19th, the rule will be triggered. Similarly, if the maximum duration rules have been enabled and in the scenario above the contract end date is set to September 20th, 2 years from the start date, the rule for maximum duration will be triggered.
- Membership Agreements: The rules apply identically to license and lease agreements with the exception when a membership agreement does not have an end date. In this case, these two approval rules will inherently not apply to said agreement.
4. Require approval when the deposit is less than XX times the highest step of an office
This rule is applied to each contract type as follows:
- License and Lease Agreements: Similarly to the discount rule, this rule is applied only to the steps of the resources and if any plans are added, their step price/deposit does not trigger this approval rule. This rule takes an office’s step’s highest price (if more than one) and compares it to the deposit to be held for the office.
Note: The approval rules use the list price of the resource you're assigning in the contract. If you're applying a discount you'll need to account for that.
If you're manually editing the price of the step, without applying a discount you won't need to account for that.
If you apply a discount, the list price will be used for the comparison to the deposit.
Let's say that you have a rule that contracts require approval if their deposit is less than 2 times the highest step of an office.
For example, if the list price of the resource is 550$/month and you discount the resource to 450$/month in the contract steps, if you try and enter a deposit that is less than 2x550$(1100$) the contract will require approval, even though it's discounted.
The following scenario will be able to provide a context as to how the rule works - The rule is enabled and the default option of 2 times is applied. If an office’s step’s price is 500, and the deposit is 999, the rule will be triggered. If the deposit amount is changed to 1001, the rule will no longer be triggered. If another step is added, and its cost is 600, the rule will trigger once more, as the required deposit now will have to be 2 times 600, which is 1200 minimum.
- Membership Agreements: This rule applies to membership agreements identically to the other contract agreements with the core difference that it works for plans and not offices. If enabled, the rule is applied even when the membership does not have an End Date set.
Please note that if the user setting up the new contract or amending an existing one is an approver and any of the rules are triggered, they would still see the warning messages, however, those will be only for information and they will still be able to ‘Add and Approve’ the contract agreement.