> For the complete documentation index, see [llms.txt](https://docs.rillet.com/EjmEP4KZ9BVp9j2ho4Mh/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.rillet.com/EjmEP4KZ9BVp9j2ho4Mh/accounts-receivable/contracts/add-a-contract.md).

# Add a Contract

A contract is a formal agreement between a seller and a buyer that outlines pricing, duration, and the products or services provided. In **Rillet**, contracts support managing revenue, tracking obligations, and measuring performance, and can affect revenue schedules and **ARR** depending on the associated products. Before creating a contract, make sure you have already created the corresponding **Customer** and **Product**.

### Create and Configure Contract Details

Follow these steps to add a contract:

1. Go to **Accounts Receivable > Contracts**.
2. Click **+ Add Contract**.

   <figure><img src="https://612265232-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FNpXFVFZpTQck3vIrjmHB%2Fuploads%2FzfUFsyWC2lq9RaRyhlXc%2Fimage.png?alt=media&amp;token=af895d34-3426-4c02-abd0-97864b30c05c" alt=""><figcaption></figcaption></figure>
3. Enter **Contract Details:**
   * **Customer:** This will be automatically filled and cannot be modified.
   * **(Optional) Shipping Customer:** Click **+ Add shipping customer** to associate an additional customer who will receive the shipment for this contract (e.g., "Adobe").
   * **Contract Name:** Enter a descriptive name for the contract (e.g., "Demo Contract").
   * **Contract Type:** Choose one from the following: New Sales, Existing, Expansion, Reactivation, or Contraction.
   * **Start Date:** Select the start date for the contract.
   * **Close Date:** Select the date of finalizing the deal.
   * **Duration:** Choose from the following options: 6 months, 1 year, 2 years, 3 years, Open-ended, or Custom.
   * **(Optional) End Date:** Select the end date for the contract.
   * **Currency:** Select the contract's currency (e.g., "US Dollar - USD").
4. Click **Next Step**.

   <figure><img src="https://612265232-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FNpXFVFZpTQck3vIrjmHB%2Fuploads%2FndCyyfzFIRIXQ41j0Jhw%2Fimage.png?alt=media&amp;token=9de5e5b2-047e-4b5b-8e58-54dd0b4adb84" alt=""><figcaption></figcaption></figure>
5. Click **+ Add Product**.

   <figure><img src="https://612265232-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FNpXFVFZpTQck3vIrjmHB%2Fuploads%2FW8WU5XTko6rIb4Hlllnu%2Fimage.png?alt=media&amp;token=6d70fa84-a5bc-40b5-a394-9e85b1223563" alt=""><figcaption></figcaption></figure>
6. Select the **product(s)** you wish to include in the contract from the list (e.g., "Demo Product").
7. Click **Add Product** to add the product to the contract and fill in the product details.

   <figure><img src="https://612265232-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FNpXFVFZpTQck3vIrjmHB%2Fuploads%2FfceNwekFUwz0ypFjh4oI%2Fimage.png?alt=media&amp;token=4242ccc8-f96b-44a4-a3d0-1355090a3860" alt=""><figcaption></figcaption></figure>
8. **(Optional):** Enter a new value in **SSP per unit**, in the product line's **SSP** section, to override that product's SSP for this contract and update the **Allocated Revenue** of every product line without changing the contract total.<br>

   <figure><img src="https://612265232-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FNpXFVFZpTQck3vIrjmHB%2Fuploads%2F2dk06nRMFQlhaBhc0MiQ%2Fimage.png?alt=media&amp;token=51277c70-d32d-4bcc-8155-d6813fa1bcc7" alt=""><figcaption></figcaption></figure>
9. Click **Next Step**.<br>

   <figure><img src="https://612265232-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FNpXFVFZpTQck3vIrjmHB%2Fuploads%2FTwXYNS1JnIhtwQJuGH9E%2Fimage.png?alt=media&amp;token=64dc3230-7766-4a18-b236-9aec10d6c0a5" alt=""><figcaption></figcaption></figure>
10. Fill in the following fields in the **Invoicing** section:

* **Invoicing Frequency:** Select Monthly, Quarterly, or Yearly for invoicing frequency.
* **Day of the Month:** Select the day of the month for invoicing (e.g., 1st, 31st).
* **Payment Terms:** Specify payment terms (Due on Receipt, Net 10, Net 30, Net 60, or Custom).
* **Address:** Select the billing address to use for this contract from the addresses saved on the customer record.
* **Email Recipients:** Select which of the customer's email addresses receive invoices, if more than one is on file, and choose **To**, **CC**, or **BCC** for each one.
* **(Optional) Shipping Address:** If you added a shipping customer, select the address to use for shipping from the addresses saved on that customer's record.

11. Click **Next Step**.<br>

    <figure><img src="https://612265232-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FNpXFVFZpTQck3vIrjmHB%2Fuploads%2FRzIxrTxNhRsWvyySR0Gz%2Fimage.png?alt=media&amp;token=f1b74179-c544-49f3-8f56-a49d4431687c" alt=""><figcaption></figcaption></figure>
12. Choose the **Revenue Pattern** that best suits your needs. Rillet displays the revenue schedule for that commitment. For a milestone product, this step shows a **Milestone plan** instead, which you set up as described in [**Set Up and Track Milestone-Based Revenue**](/EjmEP4KZ9BVp9j2ho4Mh/accounts-receivable/contracts/set-up-and-track-milestone-based-revenue.md).
13. Click **Next Step**.<br>

    <figure><img src="https://612265232-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FNpXFVFZpTQck3vIrjmHB%2Fuploads%2FFBQs0k25nV8DCfNzEUEx%2Fimage.png?alt=media&amp;token=5140bb92-f565-466b-bd79-4c9b36fdc1a6" alt=""><figcaption></figcaption></figure>
14. Review all contract details in the **Summary**, including revenue metrics like MRR, ARR, and ACV, before confirming the creation.
15. Click **Confirm contract** to activate the contract.<br>

    <figure><img src="https://612265232-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FNpXFVFZpTQck3vIrjmHB%2Fuploads%2FoCCi4F6Ad8Wah8cqiqZ2%2Fimage.png?alt=media&amp;token=35800c62-0648-4925-8ba0-73a9f7b53522" alt=""><figcaption></figcaption></figure>

{% hint style="info" %} <mark style="color:$info;">**Note:**</mark>

**Payment Terms** determine how revenue is distributed across the contract period (for example, $12.00 over 12 months sets revenue at $1.00 per month). When filling in the **product details**, you can edit details such as price or quantity after adding the product. See [**Create a New Product** ](/EjmEP4KZ9BVp9j2ho4Mh/accounts-receivable/products/create-a-new-product.md)for more.
{% endhint %}

The contract is now active and ready for invoicing and revenue recognition. If you added a shipping customer, the billing and shipping addresses selected in the Invoicing section carry over to the resulting invoice.

### **See Also**

To learn more about working with contracts in **Rillet**, review these articles:

* [**Managing Contracts**](/EjmEP4KZ9BVp9j2ho4Mh/accounts-receivable/contracts/managing-contracts.md)
* [**Copy Contracts**](/EjmEP4KZ9BVp9j2ho4Mh/accounts-receivable/contracts/copy-contracts.md)
* [**How to Create An Auto-Renewing Contract**](/EjmEP4KZ9BVp9j2ho4Mh/accounts-receivable/contracts/how-to-create-an-auto-renewing-contract.md)
* [**View GL Impact for Usage Cycles**](/EjmEP4KZ9BVp9j2ho4Mh/accounts-receivable/contracts/view-gl-impact-for-usage-cycles.md)
* [**Smart Contract Upload**](/EjmEP4KZ9BVp9j2ho4Mh/accounts-receivable/contracts/smart-contract-upload.md)&#x20;
* [**Generate 606 Analysis in Rillet**](/EjmEP4KZ9BVp9j2ho4Mh/accounts-receivable/contracts/generate-606-analysis-in-rillet.md)
* [**Import Contracts in Bulk**](/EjmEP4KZ9BVp9j2ho4Mh/accounts-receivable/contracts/import-contracts-in-bulk.md)


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