Smart Contracts on PayDocker are essentially a digital contract. It facilitates the establishment of a binding partnership between users and governs the way you transact on PayDocker with another user.
Once a smart contract has been created between a buyer and supplier, it is self-executable (Takes into effect immediately). This makes your transactions safe, efficient and irreversible.
On PayDocker, it is important to understand the roles in a transaction. We have 2 roles - Buyer and Supplier. A Buyer procures services/inventory from a Supplier. By the nature of how travel related transactions work, a travel agency can assume both buyer and supplier roles. Property businesses can only assume the buyer role in a transaction.
This article will cover both roles, what to do and how to manage smart contracts from the perspective of both travel agencies and properties.
You can navigate the contents of this article here:
- Set up smart contract with your supplier
- Set up smart contract with your buyer
- Configure your smart contract details
- Send out your smart contracts
- Negotiate your smart contracts
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Set up smart contract with your supplier
1. Access this page by clicking Setup (1), then Demand (2) in the left panel.
2. On the Demand Setup Page, select the same purpose as your connection to the buyer.
2.1 Room Procurement & Booking Related Services - Select Bookings (1)
2.2 Any Other Services - Select Services (2)
3. Click on the buyer (1) for whom you intend to begin the setup process. You'll recognize it by the To Start status (2).
Configure your smart contract details
1. On the Setup Management page, select Edit (1), and input the Internal ID (2) utilized by your company for that specific buyer. Then, you can optionally assign a name (3) to the smart contract with that buyer.
2. Below, you'll commence the setup of the Smart Contract details, where all the information previously prepared in the Settings section will be displayed.
3. Under Branch (1), select the branch (2) that will be transacting with the buyer and click Next Step (3).
4. Under Model (1), select the relevant payment model (2) applicable to this partnership with the property and proceed by clicking Next Step (3).
5. Under Terms (1), choose 1 payment term and 1 dispute term (2) that are applicable for transactions with this buyer, then proceed by clicking Next Step (3).Do ensure that the selected terms meet these criteria:
| Ref # | Area | Criteria |
| a | Category |
If you're a supplier, by default, only Receivable will be displayed. |
| b | Type | You must select 1 Payment & 1 Dispute. |
| c | Details | Must be the same for both payment and dispute terms. |
6. Under Taxes (1), choose the tax model relevant to this buyer, then click Next Step (2). If there are no applicable taxes, simply proceed by clicking Next Step (2).
Another important concept to understand is the relationship between Model and Terms. The type of models selected will have an impact on the type of Terms that you can select due to the nature of the contract. If the wrong pairing is selected, you may not be able to move to the next step.
Please refer to this table for more information:
| Model Selected | Terms you can select |
|
Hotel Collect |
Payment terms: Receivable Dispute terms: Receivable |
|
Agency Collect |
Payment terms: Payable |
|
Delivery Split |
Payment terms: Payable |
Send out your smart contracts
1. Under Connection (1), now that the smart contract has been drafted (2), click Submit Changes (3) to send the proposal to the buyer. They'll receive it promptly in their account.2. Once the buyer accepts your Smart Contract Proposal, the status displayed on the Smart Contract entry will change to Accepted.
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Set up smart contract with your buyer
1. Access this page by clicking Setup (1), then Supply or Property (2) in the left panel.
For this section, we will use supply as an example.
2. On the Supply Setup Page, select the same purpose when you connect to your supplier.
2.1 Room Procurement & Booking Related Services - Select Bookings (1)
2.2 Any Other Services - Select Services (2)
3. All Smart Contract proposals sent by service providers will be displayed on this page. The proposal status will indicate New Terms (1). To view a proposal, simply click Manage (2) on the desired Smart Contract entry.
Accepting Smart Contract
In the popup, review the transaction terms provided by the Service Provider. Then, input the ID utilized by your company for that specific supplier
If they meet your approval, click Accept Proposal to finalize the agreement. You can then proceed to conduct transactions with the service provider on PayDocker.
Negotiate your smart contract terms
As a buyer, you can choose to re-negotiate the terms if you disagree with the proposed terms. You can initiate re-negotiation by sending messages in the message box, before accepting the proposal. This will change the status of the Smart Contract entry to Request Update.
As a supplier, to view the message,
1. Click Request Update.
2. Within the Smart Contract entry, select Connection (1), and you will be directed to the message box where you can review the message they sent.
As a supplier, if you agree with the requested modifications, proceed to the relevant sections under Settings to make changes according to their requests. If you already have existing entries that can meet their requests, you can skip this step.
E.g. We agree to extend payment terms to 14 days for this buyer. However we do not have any terms that match this request. Therefore we navigate to Settings (1) and access the Terms Page (2). Then, we create a new payment term (3) specific to this Smart Contract.
4. Once done, return to the Smart Contract entry and choose the section requiring modification (1). Make the necessary adjustments (2) and click Next Step (3) till you reach Connection section (4).
E.g, we chose Terms (1), checked the box for the new payment term (2), and clicked Next Step (3) till we reached Connection Section (4).
5. When you're ready to send the updated proposal and have accessed the Connection section, you can send a reply (1) and/or directly click Submit (2) to dispatch the updated proposal. Your buyer will then receive the updated proposal.
6. The entry status will then change back to Waiting approval.
7. Once the buyer accepts your Smart Contract Proposal, the status displayed on the Smart Contract entry will change to Accepted.
💡 Feel free to renegotiate and revise the Smart Contract Proposal as many times as needed. Utilize our message box and internal notes to keep track of the negotiation progress effectively.