Customer Contracts

A contract is the live, billing form of a signed order. It tracks billed vs earned against total value, keeps a deferred revenue schedule, and — for services deals — burns prepaid hour blocks down as approved hours arrive.

Key capabilities

• Contract lifecycle statuses: awaiting first invoice, active — billing, active — drawing down, paused, completed
• Revenue burndown per contract and per line: billed vs earned against contract value
• Prepaid hour blocks with bought / used / remaining hours and the deferred balance still to recognize
• Deferred revenue schedule tab showing what's billed-but-unearned and when it releases
• Per-contract drill-down tabs: Burndown, Cash, Deferred schedule, and Billings
• Billing driven by your O2C settings: invoice cadence and default net-days terms
• Contract-drafted invoices flow into the Invoice Review queue before anything is sent
• Change orders amend value or hours as versioned, signed amendments
• Tagging for grouping and filtering contracts
• Reports: contract register, deferred revenue waterfall, and hours ledger

How it works

Each billing period the contract drafts an invoice on cadence. Billed amounts split into earned and deferred; deferred releases on the schedule (or as hours burn on prepaid blocks).

flowchart LR
  contract["Active contract"] -->|"on cadence"| draft["Drafted invoice"]
  draft --> review["Invoice Review"]
  review -->|"approve"| open["Open invoice — revenue booked"]
  open --> earned["Earned revenue"]
  open --> deferred["Deferred revenue"]
  deferred -->|"schedule / hours burn"| earned

How to use it

1. Open Order to Cash → Contracts to see live contracts with billed vs earned and hours burndown.
2. Open a contract's burndown drawer to inspect per-line billed, earned, and remaining amounts — and hours on prepaid blocks.
3. Switch to the Deferred schedule tab to see the release plan for billed-but-unearned revenue.
4. Use the Billings tab to see every invoice the contract has produced and its status.
5. Export the contract register or deferred revenue waterfall from O2C Reports when you need the audit-ready view.

Pro tips

• Set the contract's total purchased hours so the hours burndown denominator is right before drawdowns start arriving.
• Pause a contract instead of completing it when billing should stop temporarily — history and burndown stay intact.