> 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="/files/wO5MqxEaMTE67CPSXQYZ" 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="/files/ekZ54zlfkEKnwg6MC6My" alt=""><figcaption></figcaption></figure>
5. Click **+ Add Product**.

   <figure><img src="/files/So2pEHpLaI40J0xRhigb" 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="/files/bXznoK9TmguJ2iu9iKTN" alt=""><figcaption></figcaption></figure>
8. Click **Next Step**.

   <figure><img src="/files/jw9MD39bxxslzGQ5Gda9" alt=""><figcaption></figcaption></figure>
9. 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.
10. Click **Next Step**.

    <figure><img src="/files/bqQ79YldA6DLX1lwyZSz" alt=""><figcaption></figcaption></figure>
11. Choose the **Revenue Pattern** that best suits your needs. Rillet displays the revenue schedule for that commitment.
12. Click **Next Step**.

    <figure><img src="/files/FW1MU4rmX4ex3graRIE9" alt=""><figcaption></figcaption></figure>
13. Review all contract details in the **Summary**, including revenue metrics like MRR, ARR, and ACV, before confirming the creation.
14. Click **Confirm contract** to activate the contract.

    <figure><img src="/files/XmJvZyi6r8AlIZfJG27h" 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/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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