About Contracts

Sage Intacct's Contract Management solution is built to bring speed, efficiency and internal controls to the revenue recognition, billing and reporting demands of SaaS companies from early stage and pre-IPO to public. Using Sage Intacct Contract Management as the single source of truth, teams across your company have access to real-time reporting to make data-driven decisions quicker.

This integrated subscription addresses the needs of the subscription business model and includes:

• Contract Revenue Recognition
• Contract Billing
• Contract Usage Billing
• Contract Expense Recognition

Contract Revenue Recognition

Automatically recognize revenue using templates and schedules with complete support for ASC 606 and IFRS 15.

• Straight-line, daily rate, quantity-based, and custom recognition schedules, independent of billing.
• Create custom reports using the Revenue Forecast object to slice and dice your data to suit your needs.
• Multi-book accounting, allowing you insight into revenue recognition using different reporting methods.

Contract Advanced Revenue Recognition

This add-on subscription includes support for multiple-element arrangement (MEA) allocations. The advantages of Contract Advanced Revenue Recognition over Order Entry Advanced Revenue Recognition include the following:

• Provides an audit trail for MEA executions.
• Ability to process MEA separately for each set of books.
• Allows you to specify an effective date for an MEA execution.
• Ability to execute MEA allocations multiple times.

Contract Billing

The Contract Billing platform lets you tailor billing schedules to fit your business model and supports over 300 billing scenarios. With Contract Billing, you can:

• Set up automated billing schedules to bill when you want - monthly, annually, or define a custom, non-linear schedule.
• Automatically trigger contract renewals as the contract end date approaches.
• Manage open-ended subscriptions (evergreen).
• Automate the accounting for contract add-ons, change orders, and cancellations.
• Use Contract as a standard dimension.

Contract Usage Billing

Contract Usage Billing includes the ability to bill based on the item quantity used each period. Using the billing price list, you can create pricing strategies that work best for your customers, such as:

• Usage-based pricing
• Price by CPM (price per thousand)
• Discount tiers
• Minimum flat fees

Contract Expense Recognition

An expense is the cost incurred to obtain or fulfill a contract with a customer. The ASC 606 accounting rules require you to amortize contract acquisition expenses over the contract term. You can:

• Add expenses to the contract header or to a contract line.
• Recognize the expense immediately when you post the contract or amortize the expense over a schedule.
• Manually post the expense or let the system automatically post the scheduled expense journal entries on each scheduled posting date.