Contracts transaction definition requirements

You need at least one Order Entry transaction definition set up to use with Contracts. In a multi-entity environment, you must create the transaction definition at the top level. Learn how to create a transaction definition.

Required transaction definition settings

The contract invoice transaction definition must have the following settings:

Field	Required value
Template type	Invoice
Numbering sequence	Must have a defined numbering sequence
Transaction posting	Accounts Receivable
Track line-item discount or surcharge	True
Enable for Contracts	True (this field does not appear on a transaction definition until you subscribe to Contracts)
Document template	Select a printed document template To get a boost creating document templates for contract invoices, see the contract invoice samples.
Create policy (on Security tab)	New document or Convert
Edit policy Delete policy (on Security tab)	Set both to All during development. You can change both policy settings when you’re confident the transaction definition works.

Other transaction definition considerations

Note the following expected behavior for contract invoice transaction definitions for the following:

• Posting configuration
• Subtotals
• Adjustments
• Usage billing
• Custom fields

Posting configuration

Although you’ll have to enter at least one offset pair in the Transaction posting AR account mapping table on the transaction definition, Intacct will not use those accounts for line items originating from Contracts when posting the invoice.

Intacct uses the accounts mapped on the Posting configuration tab of the Configure Contracts page for contract line items.

However, line items that are manually added to a contract invoice in Order Entry will use the Transaction posting AR account mapping on the transaction definition. The best practice is not to add line items to the contract invoice. Instead, add a contract line to the contract for the additional line items and generate an invoice.

Project posting

• If Enable deferred revenue for time and materials projects is turned off in Configure Revenue Management: the billable transactions related to projects (Timesheets, Employee Expenses, AP supplier invoices, and Purchasing transactions) will use the GL account mapping from the transaction definition for billing.
• If Enable deferred revenue for time and materials projects is turned on in Configure Revenue Management: the Project time contract lines will use the Configure Contracts posting configuration for timesheets and the Project materials contract lines will use the transaction definition's posting configuration for all other billable transactions.

Subtotals

• You do not need to add a discount subtotal as discounts are handled on the contract.
• You can add other subtotals like shipping or handling as applicable.
• Set Apportioned = false for any subtotals.
• The Contracts tax calculation logic is the same as Order Entry for Basic Tax, Advanced Tax, and Avalara AvaTax.
• Invoices generated from contracts will use the GL accounts specified for subtotal lines for which Is tax is set to true on the transaction definition.
• The best practice is not to assign a GL offset account to that subtotal. Intacct will use the AR Billed account as the offset account.

Adjustments

Although technically you could define a contract invoice to be allowed to be converted to an adjustment transaction, the adjustment transaction will not affect contract journal balances as the contract invoice does not use the transaction definition account mapping.

The best practice is to create a negative contract line on the contract to handle adjustments. Learn more about crediting a contract.

Usage billing

If you want usage billing that uses tiered pricing to be split into separate lines on an invoice, set the Split tiers into invoice lines option to true in the Configure Contracts page.

Custom fields

You can have a custom field on the contract that also displays on the contract invoice.

• There must be at least two instances of the custom field: one on the contract and one on the contract invoice transaction definition.
  • If you want the custom field on the invoice header, create the field on the Contract and the Order Entry transaction objects.
  • If you want the custom field on the invoice line item, create the field on the Contract line and Order Entry transaction detail objects.
• The custom field on the contract and the custom field on the contract invoice transaction definition must have the same Field ID. For example, say you want to create a field named Service period. The Field ID for the two custom fields could be CUSTOM_SERVICE_PERIOD.
• The best practice is to use a value for the Field ID that's not already used by Intacct. For example, say that your company name is Pacific Computers and you want to create a custom field named Message. There's already a MESSAGE field on transaction definitions. In this case, use PC_MESSAGE as the Field ID on both the contract and the contract invoice transaction definition.

Learn more about creating custom fields.