Bookshelf v8.0: Financials View

The Financials view for the agreement references the quotes and orders corresponding to the agreement. From the Quotes screen > List > Agreements view and the Service Order screen > List > Agreements view, users can click the Auto Contract button to automatically create an agreement based on the quote and order contract. The data mapping will determine what fields are copied into the agreement. See Configuring Data Maps to Copy Specified Items for more information.

The Origin and Renewal Details section contains the origins of the agreement—the order and quote information. Renewals are done at the level of the agreement line items.

The Total Amounts section contains the revenue totals for the agreement including net discounts, adjustments, taxes, and shipping.

NOTE: The Total Amounts section should ideally be synchronized with the Accounts Receivable system to provide suitable visibility for contract revenue.

This information is particularly useful for contract renewals. For example, a contract may have a possible revenue of $700,000 based on all the products which have a service agreement up for renewal. However, when the negotiation of the contract renewal takes place, support for some of the products is dropped because the product is not being used any more, the products are obsolete, or because they are bundled differently.

Both of these are defined in the price list and the cost list, using the Administration - Pricing screen.

Finally, the Revenue Recognition and Invoice Details section contains information about the amount invoiced, the date of the invoice and the invoice schedule. This information is supplied by the Charge and Invoice module. Table 54 describes items in the Financials view.

Table 54. Selected Items in the Financials View
Item	Description
Term Months	A calculated field, which displays the term of the agreement header.
Months Left	A calculated field, which displays the number of months left for the term.
Renewal Term	The duration of the next term should the customer chooses to renew.
Renewal %	The percentage likelihood of the customer renewing.
Actual Margin	A calculated field, which uses the preceding actual cost and actual revenue figures to calculate and display the margin between both.
Est Margin	A calculated field, which uses the preceding estimated cost and estimated revenue figures to calculate and display the margin between both.
Rev Recognition	Revenue recognition is based on the months left of the term. This is a drop-down list with the following options that the user can select from: Annually, As Received, Daily Monthly, Quarterly, and so on.

This view is also useful for co-term information. See Using Co-Terms for more information.