The Dynamics GP Contract Administration module allows you to easily manage your contracts with your customers. You can have multiple lines of detail contract items that can include inventory items and non-inventory items. The Contract Administration module will automatically create billing schedules and revenue recognition schedules based on general contract attributes such as start date, end date, and billing frequency. There are special billing and revenue recognition screens that allow you to process a large number of transactions at one time. As actual transactions are processed, the billing schedules and revenue recognition schedules are updated to show the current status of your contracts. The image below shows the screen in which general contract information is entered. You specify the contract start and end dates, the billing frequency, and the day of the month to bill. You can also choose smooth billing and revenue recognition so that equal dollar amounts will be used each period; for example, if you started a contract in the middle of a month. This shows an example of a contract that will generate deferred revenue because the billing frequency is quarterly.
This screen allows you to enter the details of the contract. Detail lines can have different start and end dates if desired. A pricing book can be used to determine the monthly price, or you can merely type it in.
On the bottom of the Contract Maintenance Lines screen, there are buttons to display the billing schedule (Invoices) and the revenue recognition schedules (Revenue). This is what these screens look like when some of the scheduled transactions have been posted:
The Dynamics GP Contract Administration module is fairly easy to use, and has a lot of functionality. For example you can have new contacts generated from SOP orders/invoices as they are posted and the line detail from SOP will transfer to the new contract. Related service items can be linked and automatically priced on the contract. Serialized inventory items will automatically crate equipment records when related invoices are posted, and will be linked to new contracts.
Take a look at this useful video demonstrating how to use the Contract Administration module to manage contacts with deferred revenue and quarterly billing. By Steve Chapman, Senior Account Executive, Armanino's Microsoft Dynamics GP Practice
