How to Create an Auto-Renewing Contract

An auto-renewing contract, also known as an open-ended or evergreen contract, is designed to automatically generate invoices at specified intervals without a defined end date. This allows for continuous revenue collection and maintains a seamless billing process for your customers.

To Create an Auto-renewing Contract:

1. Go to the client for whom you want to create the contract.

   
2. Click the Contracts tab and then select + Add Contract.

   
3. Enter Contract Details:

   • Contract Name: Enter a descriptive name (e.g., "Auto-Renewal Contract").

   • Contract Type: Select New Sales or another relevant type.

   • Start Date: Set a start date for the contract (e.g., January 1, 2025).

   • Duration: Select Open-ended to allow for automatic renewals without a specified end date.

4. Click Next Step →.

   
5. Click + Add Product.

   
6. Choose a Fixed Recurring Product from your list (e.g., "Demo Product").

   

   Note:

   Ensure that the product is fixed and recurring. One-time products will not automatically renew.

7. Set Product Details:

   • Pricing: Input the price per month (e.g., $100) and specify the quantity (e.g., 2 users).

   • Start Date: This will typically default to the contract start date.

   • Tax Settings: If applicable, you can toggle taxes on or off, depending on your agreement.

8. Click Next Step to proceed to the Invoicing section.

   
9. Choose how often you'd like invoices to be generated (e.g., Quarterly).

10. Click Next Step →.

    
11. Once more, click Next Step →.

    
12. Click Confirm Contract to finalize.

    

Automatic Invoice Generation

Once the contract is established, the system will automatically generate the first set of invoices corresponding to the defined schedule. For instance, if you have set quarterly invoicing, you can expect invoices to appear periodically in the system, maintaining up to 12 months of future invoices in the queue.

To End Contract:

1. Click the three dots (...) next to the contract and select End Contract.

   
2. Specify the desired end date and confirm. This process will remove future invoices beyond the selected date.

   

Additional Notes

• One-Time Fees: You can add one-time fees (e.g., for implementation or setup) to the contract. It's important to note that these fees will not recur, meaning they will not generate future invoices. This feature is beneficial for upfront costs or activation fees.

• Tax Settings: It may be advisable to turn off the tax option in your instance if taxes are not applicable. This will simplify the invoicing process, as you won’t need to select this option each time you create a contract.

• Recurring Fees: Only the fixed recurring products will continue to generate invoices. Ensure that the products selected for the auto-renewing contract are set as fixed and recurring to maintain consistent billing.