Using Multiple Contracts

Since deferred revenue and unbilled accrued revenue calculations are always performed at the contract level, contracts should be used to reflect real contract conditions. As a general rule, create a new contract for a customer when the financial records are actually for a new contract/license/agreement or a financial arrangement that is deemed by your auditor to be effectively a new contract/license/agreement.

As a generalization, financial records (Transactions, Revenues, and Invoices), associated with a renewal Term within a typical subscription agreement are not placed in a new Contract. The final authority on whether renewal financial records belong in a distinct Contract relative to the financial records for the subscription being renewed should come from your auditor.

Similarly, the decision of whether to separate out schedules and addenda for "locations" or business units participating in master subscription and licensing agreements into separate and distinct Contracts should be guided by your auditor.

Workflow implications of multiple Contracts

The following does NOT apply when Jobs support is enabled and contracts in your Maxio account are defined as Jobs.

When Maxio is connected to a general ledger and you have multiple contracts within a customer, the most efficient workflow is to create invoices in Maxio and then sync those invoices to your general ledger.

Since most general ledgers do not contain a contract object, general ledgers have no knowledge of the existence of contracts in Maxio. If you have multiple contracts in Maxio and you create invoices in your GL, the sync process will place the invoices in the newest contract. You have no control over which contract an invoice is placed in if the invoice is created in your general ledger.