Use Contract Types to control certain Billing and Revenue Recognition behaviors for projects that are associated with the Contract Types. Contract Types typically mirror Revenue Recognition Methods. In some cases, users may want to have multiple posting patterns for a particular Revenue Recognition Method. In this case, they can assign multiple Contract Types to each Revenue Recognition Method.
Go to Projects | Setup | Contract Types.
Click New to create a new contract type. The Revenue Recognition tab appears.
In Description, type a description for this contract type.
Revenue Recognition tab
Select a revenue recognition method in Revenue Recognition Method. The valid options include the following:
Fixed Price – Choose to recognize the project revenue as a fixed amount
Fixed Price Plus Expenses – Choose to recognize the project revenue as a fixed amount plus all expenses
Time and Expenses – Choose to recognize the project revenue based on the time multiplied by the rate plus all expenses
Time and Expenses to a Maximum – Choose to recognize the project revenue based on the time multiplied by the rate plus all expenses up to a specified maximum amount.
In Revenue Accrual Project Account, select the account that you want to set up as the default revenue accrual project account for use throughout the project screens. You can also create a new Account by using the Quick Add feature. For more information, see Quick Add.
In Revenue Adjustment Project Account, select the account that you want to set up as the default revenue adjustment project account for use throughout the project screens. You can also create a new Account by using the Quick Add feature.
To specify the Revenue Accrual Offsetting Account Group, select the account in Acct, the department in Dept, the territory in Ter, and the product in Prd. You can also create a new account group by using the Quick Add feature.
In Invoice Project Account, select the account that you want to set up as the default invoice project account. You can also create a new Account by using the Quick Add feature.
In Write-Off Project Account, select the account that you want to set up as the default write-off project account for use throughout the project screens. You can also create a new Account by using the Quick Add feature.
In Accrual Account, select the account that you want to set up as the default accrual account for use throughout the project screens. You can also create a new Account by using the Quick Add feature.
Click Save and New, or click Save and then click New, to save the current contract type and start adding the next.
(Optional) After you save the contract type, you can add billable project accounts to the contract type by using the Billable Project Accounts tab.