Contract Administration can be used to manage rev rec for parts of your business. The key functionality that makes it good for certain revenue recognition applications is that if you invoice your customers less than monthly, the module has a built-in deferred revenue recognition process that will create and post monthly revenue recognition entries.
It’s relatively easy to use.
You create a new contract by navigating to: Transactions >> Contract Administration >> Contract Entry/Update.
In this example, I am invoicing annually.
Click on the “Contract Lines” button and this screen pops up. In this screen you can either select items from the item master file, or just key in an item. The pricing can be set up to default from a separate price book if you wish, or you can merely key in the amount you want to charge.
Click on the “Invoices” button and you get a list of all the invoices that are planned to be created according to the schedule you’ve set up. In this case there is only one, because this is a one year contract, invoiced on an annual basis. This screen will just show the amount to be invoiced for the selected line item in the schedule above.
To invoice the contract, navigate to: Transactions >> Contract Administration >> Contract Billing.