If multiple Terms match an income line, which Term will be applied?
A Contract always applies the Income Term that is deemed the most specific, regardless of the term creation order. Specificity is determined by three sequential rules:
Rule 1: Condition Hierarchy
The system prioritises the term with a condition highest in the following left-to-right hierarchy:
Cat Type > Cat Group > Territory > Channel > Configuration > Source
Rule 2: Direct Condition Priority
If terms are tied by Rule 1, the term using a direct condition is prioritised over a Contract Term Group.
Example: A Territory condition for the US will be deemed more specific than a Territory condition for a Territory Group US & CA
Rule 3: Subsequent Condition Check
If terms remain tied after Rules 1 and 2 (equally high and same condition type), Curve evaluates the first following condition in the hierarchy (Rule 1) to determine the most specific Term.
Understanding the logic behind these rules is key to ensuring the correct rate is applied to each revenue line during distribution. We provide more information about this logic in this article: