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Agreement Types

Agreement types categorize the various kinds of agreements you negotiate with clients. For example, you can define one agreement type for all verbal agreements and another for all agreements using purchase orders.

If you define an agreement type and limit revenue, any project funded by that agreement type stops accruing revenue and generating invoices when it reaches the revenue limit. If you define an agreement type and do not limit revenue, any project funded by that agreement type issues a warning when the revenue limit is exceeded, but does not stop accruing revenue or generating invoices. This is referred to as a hard limit or a soft limit.

Defining Agreement Types

Prerequisite

   To define an agreement type:

See Also

Effective Dates

Agreement Types Listing

Fremont Corporation enforces revenue limits on purchase orders and change orders, since these types of agreements always cover specific work. The retainer letter and service agreement types are defined with a disabled Revenue Limit option, since the exact amount of these kinds of agreements is usually not known immediately. The terms default for all agreements is net payment within 30 days of receiving the invoice.
Name Description Terms Default Revenue Limit Default
Purchase Order Customer Purchase Order 30 Net Enabled
Change Order Change to a Purchase Order 30 Net Enabled
Retainer Letter Retainer Letter 30 Net Disabled
Service Agreement Service Agreement 30 Net Disabled
Verbal Agreement Non-Written Agreement 30 Net Disabled


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