JC Contracts
Company Tracker action: implementation-setup-jc-contracts
Milestone: Job Cost / Module Setup (milestone_id=5, core_milestone_id=2)
Order: 9
Estimated duration: 2 hours
Typical owner: Controller
Purpose
Create JC contracts and Items (schedule of values), set department and customer defaults, bill type, JB Info, forecasts, and Customer POs. Every JC job must have a contract number. Soft/hard close is a later process, not this Module Setup card.
Prerequisites
- JC Departments exist. Customer and payment terms exist when you will invoice.
- Bill type agreed: Progress (P) vs T&M (T) (items can also use Both or None).
- Schedule-of-values / bid item detail ready for Progress contracts; JC Standard Item Codes when used.
- Know whether historical closed contracts are needed for cutover reporting or only active go-live contracts.
Vista configuration article
See the detailed Vista guide:
Field meanings and form steps live there. Do not restate them on this page.
Implementation guidance
Decide (client / kickoff)
- Info tab defaults (apply to all new contract items): department, default retainage %, default bill type, and tax code. Set these before adding items so items inherit the right starting values.
- Tax code default: set on the Info tab when sales tax must apply to all (or nearly all) contract items. If only a few items need tax, leave Info tax blank and set the code on those items only.
- Contract Items = schedule of values (SOV): load item number, description, and original amount for what must appear on the contract.
- Change-order items: set Original Amount = 0. The real dollars come from entering the change order — do not put CO value in Original Amount.
- Description = internal. Bill Description = what shows on the invoice. On first add, Description defaults into Bill Description; after save, changing Description does not update Bill Description — keep Bill Description in sync yourself.
- Retainage default: enter the client’s true default when one exists (often 10%) so new items inherit it. Override at item level when needed. If the default later changes (for example to 5%), change it on the Info tab — on save, Vista asks whether to update existing items too; use that for a clean one-pass update.
- Work Complete (WC) maximum retention: optional. Set a % of contract or a maximum retainage amount when customer contracts require a cap.
- Bill type values: Progress, T&M, Both, None.
- Use Progress or T&M when the client has clear strict splits (some contracts are only progress, others only T&M).
- If they are unsure or may mix methods, use Both — safest default and the usual recommendation.
- What to load: all open contracts plus any with activity in the year (same rule as jobs) so WIP ties to GL.
- Contract numbering and SOV / item depth before load. Progress-style billing: one item per separately billed SOV / bid piece. Pure T&M often needs only one item.
- Whether JB Info, Forecasts, and Customer POs are in Phase 1 scope.
- PM Contracts share the same JCCM file. Pending PM data becomes available in Job Cost after the project is interfaced; then either form updates the other.
Load / accept (implementation defaults)
- Load contracts and items for go-live jobs. Department on the header defaults to items but can be overridden per item.
- Changing header Department, Retainage %, Tax Code, or Default Bill Type prompts whether to push to existing items that still hold the old value.
- Changing department after revenue or costs have posted does not move prior GL amounts. Plan manual GL if reclass is required.
- Changing bill type after an item has been billed warns that Previous Billed amounts in JB may differ; the save still proceeds.
- Load scope (hard rule): bring all open contracts/jobs and any contract/job that had activity in the current year. That is required so the WIP report can tie to GL balances. Skipping year-activity work leaves a permanent WIP-to-GL gap — do not do that.
- Prefer TAD for bulk contract / item bring-live. Closed jobs with no year activity can stay out unless reporting explicitly needs them.
- Accept means contract amounts, items, customer, and bill type match the signed job for go-live.
Tips and gotchas
- Contract Items are the SOV: item #, description, original amount. CO items → Original Amount 0. Description = internal; Bill Description = invoice (stop auto-syncing after first save — update Bill Description too).
- Job bring-live pack order: Contracts → Jobs → Job Phases → Original Estimates / Job Phase Cost Types → Contract Items (SOV) (open + year-activity scope).
- Soft close and hard close belong on Contract Close / Company Parameters, not this setup card.
- Without contract Customer POs, PO entries on field tickets are informational only.
- Resync Total Contract Amount is usually unnecessary. Use only to reconcile original / current contract totals to item totals.
- Info tab department / retainage / bill type / tax are defaults for new items — set them before item load.
- Retainage: put the real client default on Info (often 10%); header change can push to items on save. Use WC max retention (% or $) when customer contracts require a cap.
- Tax: Info-tab default only when almost every item is taxable; if only a few need tax, leave blank and set on those items.
- Load all open contracts/jobs and any with year activity so WIP ties to GL; skipping year-activity work creates a permanent accounting gap.
- Bill type: Progress or T&M when splits are clear; Both when unsure (safest / typical recommendation). Wrong bill type early forces JB rework — lock with Billing before load.
Done when
- Open contracts and any with year activity are loaded with accepted Info-tab defaults (department, retainage, bill type, tax), customer, and SOV — enough for WIP to tie to GL.
- Ready to link from JC Jobs.