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If you define an agreement type and limit revenue, any project funded by that agreement type stops accruing revenue and generating invoices when it reaches the revenue limit. If you define an agreement type and do not limit revenue, any project funded by that agreement type issues a warning when the revenue limit is exceeded, but does not stop accruing revenue or generating invoices. This is referred to as a hard limit or a soft limit.

Defining Agreement Types

Prerequisite

   Define Payment Terms. See: Payment Terms.

   To define an agreement type:

1. In the Agreement Types window, enter a Name and Description of the agreement type you want to define.

If you want payment terms to default when you enter an agreement with this agreement type, enter the Default Terms.

Enable the Default Revenue Limit option if you want the Hard Limit option of the Agreements widow to be enabled by default when you enter an agreement with this agreement type.

2. Save your work.

See Also

Agreement Types Listing

Fremont Corporation enforces revenue limits on purchase orders and change orders, since these types of agreements always cover specific work. The retainer letter and service agreement types are defined with a disabled Revenue Limit option, since the exact amount of these kinds of agreements is usually not known immediately. The terms default for all agreements is net payment within 30 days of receiving the invoice.
Name	Description	Terms Default	Revenue Limit Default
Purchase Order	Customer Purchase Order	30 Net	Enabled
Change Order	Change to a Purchase Order	30 Net	Enabled
Retainer Letter	Retainer Letter	30 Net	Disabled
Service Agreement	Service Agreement	30 Net	Disabled
Verbal Agreement	Non-Written Agreement	30 Net	Disabled