Add a Contract

A contract is a formal agreement between a seller and a buyer that outlines transaction terms, including pricing, duration, and the products or services provided. It helps establish commitments and ensures clarity in the relationship. In Rillet, adding a contract is essential for managing revenue, tracking obligations, and measuring performance. Contracts can also affect revenue schedules and ARR, depending on the associated products.

Create and Configure Contract Details

To add a contract:

1. Go to the client for whom you want to create the contract and select the Contracts tab.

   
2. Click + Add Contract.

   
3. Enter Contract Details:

   1. Customer: This will be automatically filled and cannot be modified.

   2. Contract Name: Enter a descriptive name for the contract (e.g., "Demo Contract").

   3. Contract Type: Choose one from the following:

      1. New Sales

      2. Existing

      3. Expansion

      4. Reactivation

      5. Contraction

   4. Start Date: Select the start date for the contract.

   5. Close Date: Select the date of finalizing the deal.

   6. Duration: Choose from the following options:

      1. 6 months

      2. 1 year

      3. 2 years

      4. 3 years

      5. Open-ended

      6. Custom

   7. End Date (Optional): Select the end date for the contract.

4. Click Next Step.

   
5. Click + Add Product.

   
6. Select the product(s) you wish to include in the contract from the list (e.g., "Demo Product").

   
7. Fill in the product details: Once you select a product, the default pricing details will be filled in automatically.

   Note:

   If you need to modify any details (like price or quantity), you can make changes after adding the product. For additional instructions on how to create or manage products, see the article on Create a New Product.

8. Click Next Step.

   
9. In the Invoicing section, fill in the following fields:

   1. Invoicing Frequency: Select Monthly, Quarterly, or Yearly for invoicing frequency.

   2. Day of the Month: Select the day of the month for invoicing (e.g., 1st, 31st).

   3. Payment Terms: Specify payment terms.

      1. Due on Receipt

      2. Net 10

      3. Net 30

      4. Net 60

      5. Custom

      Note:

      • Define how the revenue will be distributed during the contract period. For instance, if the total commitment is $12.00 over 12 months, it will set up a revenue of $1.00 per month.

      • If you wish to invoice monthly, choose the last day of the month or a specific day according to your preference.

10. Click Next Step.

    
11. Choose the Revenue Pattern that best suits your needs (e.g., Daily, Even Period, Prorated First & Last). Here, you will see the revenue schedule for that commitment.

12. Click Next Step.

    
13. In the Summary, review all contract details, including revenue metrics like MRR, ARR, and ACV, before confirming the creation.

14. Click Confirm contract to activate the contract.

    

See Also

Learn more about working with contracts and related processes:

• Managing Contracts

• How to Create an Auto-Renewing Contract

• Viewing GL Impact: Understanding the Financial Implications of Usage Cycles

• Add a New Customer to Rillet

• Create a Usage-Based Contract