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Adding a Root Contract

A root contract in Novatus is a contract that can "stand on its own" as a legal document, binding all parties to its terms and conditions. When you add a root contract, you create a Contract Profile that is able to store basic information on the contract, such as term and renewal data. The Profile also contains links to other program features, allowing you to upload documents, create tasks and projects, set up workflows, schedule events, send messages, store product and payment information, negotiate the contract’s renewal, and rate the performance of the contract using scorecards.

The Contract Profile also provides a view of the "contract family" by displaying the root contract you add, along with any other contracts stored in the Company Profile that are of the same type. Since a Contract Profile is housed in a Company Profile, you can also view the "contract tree" for a company, which provides all of the company's contracts, displayed as a hierarchy with parent contracts (e.g., Master and Individual) at the top level, and child contracts (e.g., Exhibits, SOWs, Purchase Orders, and Schedules) at a secondary level.

A root contract can be added from:

Adding a Contract from the Company Profile

You can create a contract from two locations in the Company Profile: Add Contract button in the Action Bar and the New Contract button in the Contracts browse screen.

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A

Add Contract button

Click to display a screen that allows you to add a new contract.

B

Contracts link

Click to display the Contracts browse screen if it is not already displayed.

C

Add Contract button

Click to display a screen that allows you to add a new contract.

 

Adding a Contract from the Navigation Toolbar

You can quickly add a contract from the Contracts menu in the Navigation Toolbar by clicking on the New Contract link. A contract can be created for an existing company or you can add a company and a contract at the same time.

A

Contract Group list

Click on the list arrow   to display a list of contract groups, and then select the grouping that reflects the kind of contract you are adding. This field provides a security feature that allows you to restrict access to a contract through user roles.

If a question mark icon appears next to a field, there is a Quick Tip available for the field. Click on the icon if you need help populating the field.

B

Legal Entity list

Click on the list arrow to display a list of companies that can act as a legal entity, and then select the appropriate company.

Note:  In the Novatus system, companies are divided into two categories: internal and external companies. Internal companies are all of your "legal entities," which include your main company and any subsidiary or other entity that has the legal capacity to enter into a contract. An external company refers to the "other party" that has entered into a contract with your company. Both categories, external (companies) and internal (legal entities), have a full Company Profile in the Novatus system.

C

Agreement Type list

Click on the list arrow  to display a list of agreement types, and then select the agreement type that best identifies the new root contract.

Note: The agreement type for a root contract reflects its ability to function as standalone contract. Agreement types for root contracts are displayed in bold text, and include Master and Individual.

D

Contract Number field and Currency list

  • The contract number is defined by Novatus and the format is defined by your Administrators. In the example above, the contract number contains the first three letters of the company name, an "IND" abbreviation since the type of agreement selected is "INDIVIDUAL," and a system-generated number.
  • The Currency list is auto-populated with the currency selected in the System window of your User Preferences.

E

Contract Type list

Click on the list arrow  to display a hierarchy of contract types, and then click in the check box for a contract type to select it. Contract type categorizes a contract based on its function, and includes licensing agreements, leases, purchase agreements, acquisitions, and service agreements.

Note:  It is recommended that you drill down if a contract type has more than one level by clicking on the expand image707.png icon to the left of its check box. Click in a lower level check box to select both the top level contract type and the sub-type. For example, you could expand the License contract type, then further expand one of the sub-types (e.g., Software), and then click in the check box for Desktop. This would populate the field with License → Software → Desktop.

F

Term Type list

Click on the list arrow to display the five term types in the Novatus system, and then select the correct term for the contract:

  • Auto-Renewal, Auto-Advance - Novatus system automatically renews the contract by advancing the current contract expiration date to the next renewal date and also sets up new event alerts.
  • Auto-Renewal, Manual Advance - Novatus system automatically renews the contract, but a user must change the current contract expiration date to the next renewal date and set up new event alerts.
  • Fixed, Auto-Inactivate - Novatus system automatically inactivates the contract when it reaches its expiration date by changing the contract's status from Active to Inactive.
  • Fixed, Manual Inactivate - User must change the contract's status from Active to Inactive once the contract reaches its expiration date.
  • Perpetual - A contract with an effective date, but no expiration date. Perpetual contracts are often Master agreements that contain legal terms, as well as schedules with term and renewal information.

G

Status list

Click on the list arrow to display a list of possible statuses for the contract. Click on the appropriate status to select it.

H

Original Exp Date field

Enter the date on which the contract originally expires. You can also click on the icon to use the pop-up calendar to select the date. The Novatus system automatically populates the Current Exp Date field.

I

Event alert icon

Click on the icon to display a window that allows you to add an event alert for the contract's expiration date.

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J

Create Event check box

Select to create an event alert for the contract's original expiration date.

K

Event Owner list

Click on the list arrow to display a list of people who can "own" the event, and click on a user name to select it. The Event Owner will receive Event Notification Reports via email.

L

Notification List

If you want one or more users to be notified of the event, click on the list arrow to display the Address Book. Select all the people you want to be notified. You can also send the event alert to a distribution list in the Address Book.

M

Template list

Click on the list arrow to display a list of available templates, and select a template if its name indicates it is for a contract renewal. The Description and Notification Text fields are automatically populated with information from the template.

Note: If you do not use a template, enter the text you want displayed in the subject line of the email message in the Description field, and then enter the body of the email message in the Notification Text field. If the text you enter exceeds the viewing a field, click the Expand link to display a window that will allow you to view the text in its entirety.

N

Warn Days field

Enter the number of days prior to the event date that you want the email alert to be sent.

O

Use Reminder check box

  • If you want to send out an email reminding individuals about the upcoming event, select the check box and complete Steps P-R.
  • If you do not want to send a reminder email message, proceed to Step S.

P

Reminder List

Click on the list arrow  to display the Address Book. Select all the people you want to receive an email reminder for the event. You can also send the reminder event alert to a distribution list in the Address Book.

Q

Reminder Days field

Enter the number of days prior to the event date that you want the reminder email message to be sent.

R

Reminder Text field

Enter/edit the text you want displayed in the body of the reminder email message. If a template is selected in the Template list, this field is automatically populated with a message, but you can edit the message, if desired.

Note: If the text you enter exceeds the viewing a field, click the Expand link to display a window that will allow you to view the text in its entirety.

S

OK button

Click to create the event alert and close the window.

T

Renewal Interval field

Enter the number of months before the contract is up for renewal. For example, if a contract's effective date is 2.12.16 and it will be up for renewal on 12.12.18, enter "24" in the field, which is 2 years, expressed in months.

Note: This field is not required for contracts that have a contract Term Type of Perpetual, Fixed - Auto Inactivate, and Fixed - Manual Inactivate.

U

Notice Period field

Enter the number of days prior to the contract's current expiration date that you have to provide notice of your intent to terminate or renew the contract. Novatus automatically populates the Notice Date field.

Note: This field is optional for all contract term types.

V

Optional fields

Enter the optional information for the root contract: Contract Purpose, Contract Value, Proposed Value, Location, Description, and Effective Date.

 

W

Contract Additional fields

If your Administrators want you to capture additional information for the contact, there will be required and/or optional fields in this section of the Contract Profile. You must populate any required fields, or you will not be able to save the profile.

X

Add Responsibility button

Click to display a list of the positions of responsibility for the contract (e.g., Contract Manager), and select a position. If there are mandatory responsibilities associated with a contract, they will automatically be displayed, and you will not be able to save the contract without selecting a person for each responsibility.

Y

Name list

Click on the list arrow to display a list of people who can fill the selected position of responsibility. Once you select an individual, the other fields, such as email address and phone number, are automatically populated.

Note:  You can also type the first few letters of a person's first or last name directly into the field, and the system will display possible matches. Click on the correct name to select it, and automatically populate the other fields for the responsibility.

Z

Delete icon

Click on the icon for a responsibility if you want to remove the responsibility from the contract.

AA

Save button

Click to save the information and create the Contract Profile for the root contract.

Note: If a contract flow is linked to the type of contract you are creating, a gray banner displays under the Action Bar in the Contract Profile, showing the current stage of the contract, as well as the first step that you need to take to move the contract through its life cycle. See Completing a Contract Flow Step.