Associating Financial Details with Agreements

The Financials view of the Agreements screen includes the following sections:

• Origin and Renewal Details. This section contains order and quote information for the agreement. In the Agreements view in the List view of the Quotes screen and the Agreements view in the List view of the Service Orders screen, users can click the Auto Contract button to automatically create an agreement by using the quote and order content. Data mapping determines the fields that are copied into the agreement. For more information, see Configuring Data Maps to Copy Specified Data.

  This section also includes renewal information for the agreement line items.

• Total Amounts. This section contains the revenue totals for the agreement and includes net discounts, adjustments, taxes, and shipping. You can synchronize this section with an accounts receivable application to provide suitable visibility for agreement revenue.

• Estimated and Actual Revenue. This section contains revenue and cost information. Base revenue on price lists and cost lists in the Administration - Pricing screen. This estimated and actual information is useful for agreement renewals. For example, an agreement can have estimated revenue that is calculated using all the products with a service agreement up for renewal. However, when the negotiation of the agreement renewal occurs, support for some of the products no longer applies because the products are no longer used, the products are obsolete, or the products are bundled differently.

• Revenue Recognition and Invoice Details. This section contains information about the invoiced amount, the date of the invoice, and the invoice schedule. The Charge and Invoice module can populate this information.

This view is also useful for co-term information. For more information, see Co-Terms for Agreements.

To associate financial details with an agreement

1. Navigate to the Agreements screen, then the List view.

2. Drill down on the Name field for a selected agreement, and click the Financials view tab.

3. In the Financials form, complete the fields as appropriate.

   Some fields are described in the following table.

   Field	Comments
   Term Months	Displays the number of months in the term of the agreement header. This field is calculated as follows: (Agreement End Date - Agreement Start Date)/30.
   Renewal Term	Type the time interval for the next term, if the customer decides to renew the agreement.
   Renewal %	Type the percentage likelihood of the customer renewing.
   Months Left	Displays the number of months remaining in the term. This field is calculated as follows: (Agreement End Date - Current Date)/30.
   Est Margin	Displays the difference between the estimated cost and estimated revenue.
   Actual Margin	Displays the difference between the actual cost and the actual revenue.
   Rev Recognition	Select a value for revenue recognition. Revenue recognition is based on the months remaining in the term. Values include Annually, As Received, Daily Monthly, and Quarterly.