You can enter an agreement representing a purchase order, retainer letter, or any other funding agreement you make with a customer. When you record an agreement, you can specify payment terms for invoices against the agreement, and whether there are limits to the amount of revenue you can accrue and bill against the agreement.
From the Agreements window, you can open the Funding window to allocate funds to one or more projects (or to top tasks within a project), and to see how much unused funding remains for an agreement.
For any agreement, you can review the revenue and billing activity associated with the agreement, such as the amount of revenue accrued, the amount invoiced, and the amount of funding that is allocated and baselined.
To enter an agreement:
1. Navigate to the Agreement window.
2. Enter the Customer who is providing the agreement funding.
3. Enter a Number to identify this agreement, such as the customer's purchase order number.
The agreement number must be unique for this customer and agreement type, although two customers can each have an agreement with an identical agreement number.
Attention: You cannot change this number once you create an invoice against this agreement and interface the invoice to Oracle Receivables.
4. Enter an agreement Type.
5. Enter the Amount of this agreement.
6. Enter the accounts receivable Terms (defined in Oracle Receivables) for any invoices funded by this agreement.
7. Choose the Hard Limit check box to impose a hard limit on revenue accrual and invoice generation for projects funded by this agreement. Otherwise, Oracle Projects imposes a soft limit.
A hard limit prevents revenue accrual and invoice generation beyond the amount allocated to a project or task by this agreement. A soft limit issues a warning when revenue accrual and invoice generation exceed the amount allocated to a project or task.
8. Enter the date this agreement expires. If you do not want to enforce an expiration date, leave this field blank.
If you generate draft revenue or an invoice for projects funded by this agreement after the agreement expiration date, Oracle Projects creates distribution warnings for revenue and invoices.
9. Optionally enter a Description of this agreement.
10. Enter the administrator of this agreement.
11. Enter a Creation Date.