Service, Freight and Finance Contracts

Service Contracts

Service contracts are used when a company needs to contract general services from an external organisation or internal company; for example, inspection, loading, surveying and umpiring. Service contracts are associated with a service activity performed by the organisation.

Freight Contracts

Freight contracts are used when a company needs to contract freight services from an external organisation or internal company to transport a particular material. The origin and destination are recorded, as is the associated freight activity performed by the organisation.

Finance Contracts

Finance contracts are used when a company needs to contract financial services from a bank; for example, a bank loan to finance a purchase of material. Finance rates can be invoiced using service invoices.

Integration with Material Contracts and Despatches

Service, freight and finance contracts can have one or more contract rates. The applicability of contract rates in service and freight contracts can be limited by date range (the 'rate period'). Multiple rate details can be defined for each contract rate.

A rate detail can be added as a service charge to a sales or purchase contract, a despatch order, or to a despatch. If a service charge is added to contract terms in a sales or purchase contract, the service charge potentially applies to all despatch orders that use that set of contract terms. Whether the service charge actually applies depends on whether all criteria are met, such as freight locations, or a reference date that falls within a rate period. Depending on the invoice scope of the rate detail, service charges may be invoiced separately (for example, as a freight invoice) or included in sales or purchase invoices.