A contract is an optional overlay on a plan assignment. It can be applied to a master or supplemental plan. By default, plans are assigned to an account in perpetuity unless a change in account status or plan assignment causes the plan to be removed from the account.
By creating a contract, you can specify a duration for which a plan should be assigned to an account and what action should be taken after the contract has expired. You can offer your customers a plan at a special discounted rate for one year. To do so, you can create a plan with a discounted alternate rate schedule, assign a 1-year contract to the plan, and select the option to continue service without contract with standard rates after the contract expires.
Contracts settings determine how proration end dates, invoices for unbilled usage, and contract expiration notices are managed in your Aria system. Contract end actions can suspend the service and billing and generate a pro-rated invoice on the last billing date before the contract expiry date.
When an account's contract expires after the last billing date, account holders can still incur usage based charges before the contract ends. To ensure that these charges are properly billed, select the Generate invoice for unbilled usages on contract end date option.
An account holder can also purchase a new plan that has an end date after the current contract expires. To ensure that contract end dates and plan end dates are in conformance, select the Align proration end date with contract end date option.
The following examples illustrate how these settings can affect billing, proration, invoice generation.