What are Multi-contract Proposals?
Most proposals will be converted into a single contract when members accept them but this may not always be the case. On occasion you may find the need to create proposals for customers who want to join a plan for a period of time and agree to upgrade or downgrade to another plan after a while. Or, typically when renting out private offices, customers will agree from day one to a step-up in price after an initial period of time.
Multi-contract proposals allow you create a single proposal with all this information. When the proposal is accepted multiple contracts will be created and scheduled to start and end based on the start and cancellation dates for each of the proposal contracts included in the proposals.
How to create a multi-contract proposal?
Start by creating a regular proposal and saving it. Access the details of the new proposal and click on the "Contracts" tab.
You will find a contract has been created for you based on the details you added when creating the proposal.
From this screen click on "Add Proposal Contract" to create an additional contract in this proposal. In the form presented select a plan, start date, billing day and, optionally, price and desks or offices for the contract.
A very common scenario takes place when a proposal represents a deal that changes price every a number of months, for example, a private office may be rented at a price for the first year, a different price for the second year and a final price for the third year. You can use multi-contract proposals to represent these deals and present them to your customers as part of the proposal acceptance process. To do this, create a regular proposal ensuring you select a cancellation date for when first part of the deal ends. For example, in this case we have have added a proposal that starts on the 1st of February 2019 and ends on the 1st of February 2020.
Accessing the details of the proposal and listing the existing contracts in it at this stage looks like this.
Now, you could add a new contract starting on 1st of February 2020 and ending on 2021 for the second term of the deal but there is an simpler and quicker way, as long as you have selected a cancellation date for the first term of the deal. You can select that first proposal contract in the list and use the "more actions" menu to create a new price term.
This automatically creates an exact copy of the proposal contract setting the start date to match the cancellation date of the previous contract. All other items of the contract, such as the plan and desks are copied.
The last step is simply amend the proposal contract price according to how much the customer should be charged during that second period. You can do this by clicking on the edit button in that line and amending the existing price. Saving that proposal contract record will get you back to the list of the contracts showing the new price.
If you needed to add a third term, ensure you set a cancellation date for the proposal contract representing the second term. You do this in exactly the same way as you just set the price up.
You can then use the "more actions" menu as you did earlier and create the third term.
This will create a third proposal contract starting on Feb 2021 and with no cancellation date. We can amend the price as we did for the second term.
Accepting a multi-contract proposal.
Customers are sent and accept proposals of this type in exactly the same way as they do regular proposals. The only difference is that they will be presented with the information about each of the terms in the proposal when they review and accept it.
A contract value is reflected in the upgrade and downgrade reports that show when a member changes to higher or lower price plans. This does not have any effect in monetary terms but is useful for comparing the relative values of different price plans. If you leave the Value field empty, the platform considers the price plan rate as the value.