Agreements (Oracle Service Help--Production)


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Agreements

In Oracle Order Entry/Shipping, you can define customer agreements that represent commitments made with a customer for existing and future products and services. Agreements indicate the payment terms, price list, discounts, accounting rule, and invoicing rule to apply to customer orders. An agreement that you indicate on an order will be copied automatically to the installed base for each serviceable product on the order.

Each agreement that you set up can have an accounting rule and an invoicing rule. Accounting rules are used by Oracle Receivables for revenue recognition purposes. You can recognize revenue in the following ways:

all at once when the product is sold

periodically (for example, monthly) for a certain number of periods

in arrears after a certain number of periods

Invoicing rules are used by Oracle Receivables to determine whether to bill in advance or in arrears.

You can designate an agreement at the sales order header level to apply to all serviceable products on an order. In addition, you can designate a different agreement for each service program on an order.

Note that the agreement you designate at the sales order header level is copied to the installed base and is called the product agreement. The agreement you designate for a particular service program, called the service agreement, is not copied to the installed base.

Agreements

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