Creating Contracts

You can create a contract with contract line items created from products and plans in your Salesforce Org Salesforce organization. A contract must contain one or more contract line items. The company you choose is copied to the related billing documents when they are created. If your organization uses Avalara AvaTax to calculate tax for billing documents, the Company field must contain a valid company.

To create a contract:

1. Click New or New Billing Contract on the Billing Contracts tab.
2. Enter a name for the contract.
3. Enter the account to which the contract belongs.
4. [Optional] Enter a description for the contract.
5. [Optional] Select the company or legal entity in your organization to which this contract belongs. The company you choose is copied to the related billing documents when they are created. If your organization uses Avalara AvaTax to calculate tax for billing documents, the Company field must contain a valid company when you do so.
6. Enter the contract start date.
7. Enter the contract end date if there is one. When you save the contract, the Renewal Reminder is set automatically based on the End Date if your administrator has entered a value in the Renew Reminder Days Before Contract End field in the Billing Central Settings custom setting. See Renew Reminder Days Before Contract End.
   
8. Enter the date of the first bill.
9. [Optional] Select the engagement Represents a single customer engagement that can include diverse revenue streams. It links together related products for a customer within a given time frame, such as professional services, subscriptions, and goods. to which this contract belongs. The engagement you choose is copied to the related billing documents when they are created. For more information about engagements, see Engagements.
10. [Optional] Enter a proration policy if you don't want to accept the default (if set), or clear the field to have no proration policy.
11. [Optional] Enter a renewal reminder date. When this field contains a date it does not change if the contract's end date changes.
12. Complete any other required fields. See Billing Contract Fields for information about specific fields.
13. Click Save.

The following steps explain how to add contract line items using the BC Contract Line Items Lightning component. Additional information about using this component, including how to customize the fields displayed, is provided in Lightning Component Related Lists.

1. Click Add in the Billing Contract Line Items related list on the Billing Contract Detail page.
2. Select the price book that you want to obtain the default unit price from. The available products in that price book are listed.
3. [Optional] Enter the name of the product or service you want to search for, then press Enter. Results that match your search term are listed.
4. Select the products you want to add to the contract.
5. When you have selected all the products you want to add to the contract, click Next to display the Edit Selected Products page.
6. Complete the fields on the Edit Selected Products page for each contract line item. If the page lists the default fields:
   • Select the billing type. If the line is to be billed on a recurring basis, select the billing type "Recurring Fixed". If the line is to be billed once, select "One-off". If the line is to be billed based on customer usage, select "Recurring Variable".
   • [Optional] Edit the first bill date if it is different from the first bill date on the contract header.
   • [Optional] Edit the start and end date if they are different from the contract's start and end date.
   • [Optional] Edit the unit price or select a pricing structure. You can create a new pricing structure by using the +New Pricing Structure option.
   • [Optional] Select a discount or create a new one using the +New Discount option.
   • Enter a quantity if the Billing Type is "One-off" or "Recurring Fixed".
   • [Optional] Select a charge term or create a new one by using the +New Soft Date option. You only need to enter a charge term if the line is to be charged at a different frequency from the billing term. For more information, see Charge and Bill Contracts at Different Intervals.
   • Select a billing term or create a new one by using the +New Soft Date option.
7. Click Save.
8. If necessary, edit each contract line item to complete the following information:
   • [Optional] Enter a unit of measure if the line is to be billed based on usage.
   • [Optional] Enter a description for the line.
9. Save each line item after editing.