Contracts
Package: BRAINX.APP
The Contracts module is exclusively available in the CRM version brainX APP!
1. General
Contracts in brainX represent service or license agreements and display an overview of the services and conditions for a product, a service, a license and a contingent.
Contracts can be referenced to a product, as well as to an organization, an order and a partner.
Contracts can also be selected in invoices. All linked invoices for a contract are thus displayed in the Relations tab of the contract.
A company concludes an annual maintenance contract with a customer. The contract is created in brainX with contract start, billing interval and the corresponding line items. brainX automatically creates an invoice at the respective billing time and transfers language and tax type from the contract.
A SaaS provider manages license contracts for multiple customers. Via the Modify Contract action, quantities or prices of individual line items can be adjusted without having to recreate the entire contract. With the Revenue Forecast, the expected revenue for the next months or quarters can be graphically evaluated.
This section only describes special fields or functionalities of the module, as all general brainX functionalities are described elsewhere in the manual.
2. List View
The list view in the Contracts module has the usual functionalities of a list view. For more detailed information, see the section Structure/Layout – List View.
2.1. Actions
In the list view, general actions are available depending on the module. An overview and description of all general actions can be found in the section Actions (List View).
The following module-specific actions are also available:
| Action | Prerequisite | Functionality |
|---|---|---|
| Revenue Forecast | none | After clicking, the popup of the same name opens, displaying the expected revenue for the selected records and the selected time period graphically. Detailed information see section Revenue Forecast. |
3. Detail View
3.1. Fields
The following table describes required fields and fields with non-obvious functions. All other fields are self-explanatory.
Basic Data Block
| Field | Description |
|---|---|
| Contract Title * | Name of the contract |
| Contract Start | Start date of the contract. Once at least one invoice for the contract exists, this field is locked and can no longer be changed. |
| Status |
|
| Billing Interval |
|
| Advance Billing in Days | Number of days by which billing is to be advanced. |
| Payment Term in Days | Payment term of invoices generated from the contract in days. |
| Price Increase | Amount or percentage of the periodic price increase. |
| Price Increase Interval |
|
| First Price Increase from |
|
| Override Price Increase | Indicates whether the automatic price increase for this contract may be manually overridden. |
| Billing Time |
|
| Notice Period |
|
*Required field
Line Item Group – Basic Settings Block
| Field | Description |
|---|---|
| Currency | Selection list of all active currencies in brainX – see Global Settings – Currencies & Taxes |
| Tax Type | Tax type (none, Group, Individual) that is automatically transferred to the product block when creating a record |
| Language |
|
Terms and Conditions Block
In the Terms and Conditions block, individual terms and conditions for the contract can be stored. When creating a new record, the terms and conditions are automatically pre-filled with the standard terms and conditions stored in Global Settings – Information.
Line Item Group Block
The description of the fields and functionalities of this block can be found in the section Product Block in Billing Modules.
Contingents are automatically created when the Automation "5.2 | Create Contingent for Order / Contract" is set up and active. If a contract contains line items of type "Services" in this case, the automation automatically creates contingents for them.
If the quantity of a line item changes, the quantity of the corresponding contingent also changes upon contract renewal or with the next invoice.
Summary Block
The description of the fields and functionalities of this block can be found in the section Product Block in Billing Modules.
3.2. Actions
The following actions are available in the detail view:
3.2.1. General Actions
- PDF Export
- Recommend
- Copy
- Delete
- Change Tracking
For detailed information on the actions, see the section Actions (Detail View).
3.2.2. Module-Specific Actions
| Action | Prerequisite | Functionality |
|---|---|---|
| Modify Contract | none | Opens the Modify Contract Line Items popup, via which quantities, prices, status, line items and the billing interval of the contract can be adjusted. Detailed information see section Modify Contract. |
| Revenue Forecast | none | Opens the popup of the same name with a graphical display of the expected revenue for the current record and the selected time period. Detailed information see section Revenue Forecast. |
| Create Upgrade Deal | none | Creates a new deal in the Deals module from the current contract, based on selected line items and additional quantity specifications. Detailed information see section Create Upgrade Deal. |
| New Email | none | Opens the form for composing a new email and links it to the current contract. |
Contracts module – Actions
3.2.2.1. Modify Contract
After clicking the Modify Contract action, the Modify Contract Line Items popup opens.
Modify Contract Line Items Popup
In the popup, five action buttons are available:
3.2.2.1.1. Change Quantity
After clicking the Change Quantity action button, the Change Quantity section with additional fields is displayed in the popup.
Modify Contract Line Items Popup – Change Quantity
3.2.2.1.2. Change Price
After clicking the Change Price action button, the Change Price section with additional fields is displayed in the popup.
Modify Contract Line Items Popup – Change Price
3.2.2.1.3. Change Status
After clicking the Change Status action button, the Change Status section with additional fields is displayed in the popup.
Modify Contract Line Items Popup – Change Status
3.2.2.1.4. Insert Line Item
After clicking the Insert Line Item action button, the Insert Line Item section with additional fields is displayed in the popup.
Modify Contract Line Items Popup – Insert Line Item
3.2.2.1.5. Change Billing Interval
After clicking the Change Billing Interval action button, the Change Billing Interval section is displayed in the popup.
Modify Contract Line Item Popup – Change Billing Interval
3.2.2.2. Revenue Forecast
After clicking the Revenue Forecast action, the popup of the same name opens, displaying the expected revenue for the selected time period graphically. In the list view, the revenue forecast refers to the selected records; in the detail view, to the respective record.
Revenue Forecast Popup
In the popup, the following selection lists are available for adjusting the revenue forecast:
- View → display of the revenue forecast (Groups, Revenue or Groups and Revenue)
- Interval → selected time period of the revenue forecast (Year, Quarter or Month)
- Period → number of the time units selected in Interval (values from 1–12)
3.2.2.3. Create Upgrade Deal
An "upgrade deal" can be created from an existing contract. For this, one or more line items from the contract can be selected and the additional quantity of the line item(s) entered. After execution, a new record is created in the Deals module.
After clicking the Create Upgrade Deal action, the Deal from Contract popup is displayed.
Deal from Contract Popup – one line item group
Deal from Contract Popup – two line item groups
Using the checkbox in the first column, one or more line items can be selected. The additional quantity of each selected line item is entered in the add. Quantity field.
If a line item group contains multiple line items, new quantities can be entered for all line items in the group via the add. Quantity for all field.
The Create button is active regardless of whether line items have been selected. A deal can thus also be created without line item selection – e.g., when a new package or a new line item is to be configured in the deal itself.
After clicking the Create button, the new record is displayed in the edit view in the Deals module. The new deal can be reviewed once more and corrected if necessary. After clicking the Save button, the new deal is created.
Which fields – in addition to the line items – are transferred to the new deal can be configured in Module Management – Layout in the Edit Actions settings.
4. Notes
4.1. Interim Invoice Process
The interim invoice is used when the By Calendar Quarters value has been selected in the Billing Time field. In this case, an interim invoice is first created for the period from the contract start to the end of the current calendar quarter. From the following quarter, regular billing occurs according to the set billing interval.
Contract billing is executed daily (background task "Billing – Contract Billing"). Interim invoices are calculated to the day, with discount tiers correctly determined based on the respective quarter boundaries.
If the contract contains line items of type Services, these are billed proportionally in interim invoices. If a line item is a contingent, a timesheet is automatically created for the period elapsed in the interim invoice interval.
In the Billing from field of a line item in the product block, an individual billing date can be recorded that may differ from the contract start. If the contract start changes, the date in all line items is automatically updated. Once at least one invoice for a contract exists, the contract start is locked and can no longer be changed.
4.2. Billing From
When adding line items, the contract start is automatically transferred to the Billing From field. If the contract start changes, the date in all line items is updated accordingly. Once at least one invoice for a contract exists, the contract start is locked and can no longer be changed.
4.3. Billing of Services
Services in line items are billed proportionally in interim invoices. If the line item is a contingent, a timesheet is automatically created for the time elapsed in the interim invoice interval.
4.4. Individual Billing Date
In the Billing From field of a product block entry, any date can be recorded. Contract billing is executed daily (background task "Billing – Contract Billing"), and interim invoices are calculated to the day. If billing is performed by calendar quarters (Billing Time field), the system correctly determines the start of discount tiers based on the respective quarter boundaries.
4.5. Language and Tax Type for Automated Invoice Creation
For automated invoice creation from a contract, language and tax type are transferred from the contract by default.
If the invoice recipient differs from the recipient stored in the contract, language and tax type are automatically loaded from the differing invoice recipient. This ensures that the generated invoice corresponds to the settings stored at the recipient.
4.6. Interim Invoice upon Reactivation of a Line Item
If a line item is set from Inactive to Active status via the Modify Contract action, this change is automatically taken into account for an interim invoice. The period from the reactivation date to the next regular billing is billed proportionally.
5. Practical Examples
1 – Creating an Annual Maintenance Contract with Automatic Invoice Creation
A company concludes an annual maintenance contract with a customer. In the Contracts module, a new record is created, the Contract Start is entered and the Billing Interval is set to annually. The Payment Term in Days is stored according to the agreed conditions. In the product block, the maintenance services are recorded as line items, tax type and language are set according to the customer settings.
brainX automatically creates an invoice at the respective billing time via the background task Billing – Contract Billing. Language and tax type are automatically transferred from the contract. After creation, the invoice is referenced in the Relations tab of the contract and viewable for the team.
2 – Adjusting a License Contract for a SaaS Customer via Contract Modification
An existing customer expands their software license by five additional users. Instead of recreating the contract, the Modify Contract Line Items popup is opened in the detail view of the existing contract via the Modify Contract action.
Via the Change Quantity button, the new user quantity is entered and given an effective date. Additionally, via Change Price, an adjusted price can be stored if the contract contains a new price agreement. The change is saved and takes effect on the automatically generated follow-up invoice from the defined date.
3 – Evaluating the Revenue Forecast for Multiple Contracts
Management wants to estimate the expected revenue from running contracts for the next quarter. In the list view of the Contracts module, all active contracts are marked via checkbox and the Revenue Forecast popup is opened via the module-specific action of the same name.
The Interval is set to Quarter and the Period to 4. The graphical display shows the expected revenue per quarter for all selected contracts – broken down by groups, revenue or combined. This allows the contract revenue to be estimated at a glance for planning and management purposes.
6. Frequently Asked Questions
Is the Contracts module also available in brainX CRM?
No. The Contracts module is exclusively available in brainX APP and is not available in the brainX CRM version.
How are invoices automatically created from a contract?
Contract billing is executed daily via the background task Billing – Contract Billing. At the respective billing time – based on the contract start and the set billing interval – an invoice is automatically generated. Language and tax type are transferred from the contract.
Can I change the contract start afterwards?
No. Once at least one invoice for a contract exists, the Contract Start field is locked and can no longer be changed. The same applies to the Billing From field of the individual line items.
What is the difference between "Individual" and "By Calendar Quarters" for the billing time?
With Individual, billing occurs depending on the contract start at the set billing interval. With By Calendar Quarters, an interim invoice is first created for the period from the contract start to the end of the current quarter; subsequently, regular billing occurs according to the set interval.
How can I adjust quantities or prices of a running contract?
Via the module-specific action Modify Contract in the detail view, the Modify Contract Line Items popup opens. There, the actions Change Quantity, Change Price, Change Status, Insert Line Item and Change Billing Interval are available. Changes can be given an effective date and take effect on the follow-up invoice from this date.
What is an upgrade deal and when is it used?
An upgrade deal is created via the Create Upgrade Deal action from an existing contract. One or more line items of the contract are selected and the additionally desired quantities are entered. In the Deals module, a new deal with the selected line items is created – e.g., when a customer wants to upgrade or expand their license and the sales process should be restarted.