Add Agreement

Complete the following steps to add an agreement:

Select Products from the Gotransverse application menu .
Click Agreements in the left pane.

Agreements Window
Click Add to above the Agreement section to open the Add Agreement window.
On the Add Agreement window, enter the required and relevant information:

Add Agreement Window
Required fields are marked with an asterisk.
- Name* — Enter the name of the agreement (maximum 40 characters long).
- Status* — Select one of the following statuses:
  - Draft: Default status for new agreements. Agreements with a status of Draft are not available for active use and can be deleted.
  - Active: The agreement is available for use and can be assigned to a product. Active agreements cannot be deleted.
  - Suspended: A previously active agreement is unavailable to use. Suspend the agreement if you do not want to use it any more. You can change the status from Suspended back to Active.
- Period Type* — Indicates that the period for the agreement is in either months or days.
- Period* — The number of days or months the agreement period is in effect.
- Renew Action* — Select the transitional event that occurs automatically at the end of the agreement period:
  - Renew Agreement: Automatically renews the Subscription and associated agreement rolls over to repeat the length of time period and conditions. For example, if the agreement is for six months, at the end of six months, another six-month agreement for the service begins.
  - Service Only: Continues the service at the same price and the same billing period. No agreement is in effect, and the customer can cancel the product at any time with no termination fee.
  - Deactivate Service: The service ends when the agreement ends. Gotransverse no longer bills for the service.
  - Change Agreement: The Subscription changes to a different agreement.
  - CPQ Managed: The service renewal is managed by the CPQ microservice.
- Renewal Pricing — Required if Renew Agreement is selected in the Renew Action field. Select one option:
  - Product Price: For agreements that are renewed, the new service price reflects the relevant price on the product definition at the time of renewal.
  - Service Price: For agreements that are renewed, the new service price continues to be the same as during the previous agreement period.
- Adjustment Category* — Select an adjustment charge category to be used if the agreement is configured to create a debit adjustment for a termination charge.To define a new adjustment charge category, click Add.
- Termination Charge* — The charge for ending the use of the service before the agreement period ends. Select one of the following options:
  - Flat Amount: (Default) Specifies a flat amount of money that a user will be charged as a termination fee if they end service before the agreement period ends —for example, $50. Enter a numeric value in the adjacent field.
  - Percentage: Specifies a percentage of the recurring charge that a user will be charged as a termination fee if they end service before the agreement period ends (for example, 45% of a recurring charge of $100 would be a fee of $45). Enter a numeric value in the adjacent field.
- Maximum Termination Charge — Required if Percentage Termination Charge is enabled. This amount is the maximum termination charge that the customer owes as a result of canceling service before the agreement end date. Enter an amount greater than zero.
- Prorate On Cancel — Enable this setting to prorate remaining charges in the agreement if a customer cancels the agreement early. The customer would then pay a prorated amount on early cancellation. The prorated amount is determined by the Termination Charge value, the remaining number of billing periods in the agreement, and the Maximum Termination Charge. Refer to Prorate on Cancel with Agreement Examples for more information.
  
  Enabling Prorate On Cancel will impact the amount of the calculated termination charge.
- True Up — Enable this setting to charge a minimum amount on the agreement. If the specified Agreement Minimum is not met over the period of the agreement, the remainder is charged at the end of the agreement. To use this feature, both the Enable Agreement Minimum Amount and Enable Service Invoice Charges Register system settings must be set to TRUE. Refer to System Settings for more information about how to configure system settings in the Admin application. In order for a service to bill the minimum, the two system settings must be set to TRUE prior to ordering the service. The system will bill the minimum amount at the end of the agreement period. If a service is deactivated prior to the agreement end date, you can update the agreement end date to match the service end date to bill the True Up in the bill cycle following the date deactivated. Alternatively, you can leave the agreement end date as is, and the True Up will bill in the bill cycle following the agreement end date.
  
  Edit Agreement Window - True Up Fields
- Charge Types — If True Up is enabled, select the types of charges that are aggregated over the course of the agreement to determine whether the Agreement Minimum (below) is met.
- Agreement Minimum — If True Up is enabled, enter the minimum fee that must be met per the agreement. If the charges do not meet the minimum, then the remainder of the minimum is charged at the end of the agreement.
- Reason — If True Up is enabled, enter a True Up adjustment reason. Reasons are created and managed in the Setup application. Refer to Reasons Module for more information.
When you have completed entering the information, click Finish. The information is saved, and the new agreement is visible on the Agreement section.

Refer to Agreement Notification Actions for information about managing agreement actions.

Topic updated: 09/2024.