Set up a new contract

Information

There are two types of contracts:

• Active contracts are customer contracts
• Standard contracts are templates for setting up future Active contracts

Before you set up your contracts for the first time, confirm that you set up your contract IDs properly. Verify the settings in Contracts, File, Company Settings, Custom Descriptions, CN Contract. After you set up your first new contract, you can’t change the contract ID format. The same is true for a contract item and its ID format.

If you’ll be using AIA-type billings and the Billing application for invoicing, be sure to read the Billing Help topic titled "AIA-type billing considerations." To print AIA-type billings correctly, you need the correct setup on the contract. You need to apply these considerations when setting up contract items and when initially determining the contract item sectioning.

Contract status

The contract status on the contract General tab allows you to track the development of a contract from its proposal through completion. You can change the status of a contract from any setting to any other setting, if you’re authorized to do so.

A contract must have an Approved status before you can generate an invoice in the Billing application. This applies to both contract-based and cost-based invoicing.

When you use task security, you have to release the contract before you can approve it. If you’re authorized to both release and approve contracts, changing the status to Approved also automatically releases the contract.

Set up a contract

Use these steps to set up a contract that doesn't use taxes. Setting up a contract with taxes follows a different process. 

1. Go to Contracts, File, New Contract.
2. Select the type of contract to set up: Active (customer) or Standard (template).
3. Type the ID of the new contract.
4. To base an Active Contract on a template, select the Standard Contract from the Based on section.
5. Click OK.
6. Complete or change the applicable information on the contract tabs as needed.
7. Add contract items as needed and complete their information.
8. Select the appropriate status for the contract. You can approve the entire contract and all the items simultaneously. You can also approve the contract and the contract items separately.

How do I set up finance charges for a new contract, job or customer?