Contracts

Purpose: Contracts are useful when you want to:

• Reserve sales inventory
• Record an agreed sale price

Example: Beer Bar XYZ calls and says they would like you to put aside 3x 15 Litre Kegs of your new Pale Ale, and you agree to a discount with them of $100 per keg.

What is a Contract?

A typical contract can look like this

Reserving

Once approved:

• A Non Reserving contract cannot be changed to a Reserving contract
• You can no longer add or remove line items
• You can still update unit prices
• You can update remaining quantities on line items

Price tiers

This section answers:

• What is a Billing Account?
• What is a Price tier?

Billing Accounts

A billing account (referred to as a Contact in Xero) is a business address. Many customers can have the same Billing Account.

For example:

Company A (billing account)

• Bar 1 (customer)
• Bar 2 (customer)

When you create a contract, you create it for the billing account.
When you create an order, you create it for the customer.

Price Tier

A billing account can have a Price tier. A price tier is used to define additional prices on products. In the following example, Wholesale A and Wholesale B are two different price tiers.

Company A (Wholesale A)

• Bar 1
• Bar 2

Company B (Wholesale B)

• Bar 3
• Bar 4

When you create a price tier, you can create variant prices for that price tier.
Once you assign a Billing Account to this Price Tier, you will see the Price Tier prices on the Contracts you make.

Assigning a Price Tier

Variant	Wholesale A Price	Wholesale B Price
6 Pack of IPA	$10	$12

Example Contract line item for Company A

Product	Unit Price	Wholesale A Price	Quantity
6 Pack of IPA		$10*

Example Contract line item for Company B

Product	Unit Price	Wholesale B Price	Quantity
6 Pack of IPA		$12*

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Creating an Order from a Contract

If you have approved contracts for a billing account, the contracts will appear when you start making an order for a customer, and appear as line items you can add quantity to

New Order

• The user can input a quantity to take from a contract, and edit the unit price before approving.
• The user can also add new line items to the order by pressing the Add Button.

Order Approve Process

1. An order is created
2. Remaining quantities are adjusted on the Contracts
3. Contracts with zero remaining quantities are marked as completed
4. If you have auto-archive set, completed contracts are archived
   You can set auto-archive in Sales > Settings -> Shop Settings in the Contracts subsection.

Status

A contract can have 1 status at a time, therefore statuses have priority. The priority is written below.

• Deleted
• Archived
• Cancelled
• Completed
• Approved
• Draft

For instance, if you have a draft contract and you approve it, it is now Approved.
If you then Complete that draft, it is now Completed.
If you then Archive it, it is now Archived

There are rules that guide the workflow of a contract. Below is a table which shows what can or cannot be done to a contract from different statuses.

	Delete	Cancel	Archive	Complete	Approve	Updated	Unarchive
Draft	✅				✅	✅
Approved		✅ 1		✅		✅
Completed			✅			✅ 2
Archived						✅ 2	✅
Cancelled			✅
Deleted

View remaining contract items for an account

To see which current contracts and a breakdown of the products for an account, navigate to their Billing Account > Contracts

This page gives you two different views of the contracts for this billing account.

“Contracts” tab shows all approved and open contracts with quantity available

• R means this contract is reserving stock
• Clicking on the contract name will open a preview of the contract

The “Breakdown” tab shows you the item names and quantities still available to the account at a quick glance.

Clicking on the ‘Copy’ button will copy and paste this information in a simple format, allowing you to paste them in an email or messenger app. Below is an example of the text given from the above screenshot.

Chiaki's KBC Test Contact
CON-75
- 一期一会 新 (DO NOT TOUCH) Eco-Keg - 15.5L x5
- 一期一会 新 (DO NOT TOUCH) Eco-Keg - 20.5L x7
- 一期一会 新 (DO NOT TOUCH) Eco-Keg - 10.4L x9
CON-65
- ハレとケ「ケ」 Can - 350ml x230
CON-49
- 今 (Kon) Can - 350ml 24 Pack x50
CON-48
- ハレとケ「ハレ」 Bottle - 750ml 3 Pack x3

Common Questions and Answers

Do contracts need to reserve inventory?

It does not. When creating a contract, do not check the “Reserves” checkbox

Can I change a contract from reserving to non-reseving?

Once a contract is approved, you cannot change the quantity, or whether it reserves stock. You also cannot remove or add line items.

What if I want to add more line items to an approved contract?

Create a new contract. You can create as many contracts as you need.

Footnotes

1. This will move all reserved stock R -> U ↩

2. You can update a note on the contract ↩ ↩²