Info: The forms can be configured differently for the various contract types.

Tip: Click the headings below to view an explanation of the fields in the form.

• Supplier: Select the supplier or customer with whom the agreement is made. When linked to a customer or supplier, the agreement will also be displayed on the customer or supplier form.
• Signed by (counterparty): The name of the person who has signed the agreement.
• Date signed by counterparty: The date the counterpart signed the agreement.
• Counterparty's contract: The contact person at the supplier.

• Responsible: The person responsible for the agreement in the company.
• Signed by (Internal): The person who signed the agreement internally.
• Date signed internally: The date the agreement was signed internally.
• Internal contact person: The company’s internal contact person for the supplier.

The responsible person is the one in charge of following up on the agreement’s validity, price adjustments, and content. The internal contact person is the person who maintains direct communication with the counterpart. Signed by refers to the person who has the authority to sign on behalf of the company. In some cases, the same person may hold more than one of these roles in an agreement.

• Start date: The date the contract starts.
• Lasts until: If the contract has a fixed duration, enter the contract’s end date in this field.
• Is ongoing contract: Ongoing contracts are open-ended contracts. These may be contracts with annual renewal unless terminated within a specified deadline, or contracts with a notice period.
• Running time: An ongoing contract can have two types of termination terms. Ongoing contracts may be terminated at any time during the year, typically with a specified notice period. Annual renewal contracts require termination by a specific date each year to prevent them from continuing into the following year. If Annual renewal is selected, a field will appear where you can enter the deadline for cancellation.
• Counterparty's notice of termination deadline: The counterparty’s notice period.
• Own notice period: The internal notice period.

A contract can be linked to departments, locations, projects and equipment.

If the contract includes options, enter an option code, a description and a deadline for exercising the options in their respective fields.

Contract value is used for fixed-term contracts or for ongoing contracts that include a one-off cost. For fixed-term agreements, the contract value represents the contract amount. In the calculated plan, the contract value is distributed monthly over the duration of the contract. If the contract does not have a Lasts until date, the contract value is distributed over the next 12 months.

Annual contract value applies to ongoing contracts and represents the annual cost of the contract. In the calculation plan, the amount is distributed monthly for the next two years, unless otherwise specified on the contract type.

For ongoing contracts that include a one-off cost, the one-off cost can be added to Contract value, and the annual cost of the contract is specified in Annual contract value.
If the contract does not have a Lasts until date, the contract value is distributed over the next 12 months in the calculated plan. If the contract has an expiry date, the contract value is distributed over the duration of the contract.

Note: When a new product line is created, an inventory transaction is generated for the product. This is only possible if sufficient inventory is available.