Accounting of Agreements

An agreement is a contract with a customer/vendor on the terms of cooperation. Each agreement under which the purchase/sale is carried out must be registered in the agreement card. The agreement card contains information about the terms of cooperation with a customer or vendor. On the agreement card, it is possible to set the default agreement terms, which will be filled out automatically in the purchase or sale documents. For example, contact information, currency code, or VAT business group of a customer or vendor.

In terms of agreements, it is possible to generate a G/L Source Turnover, G/L Account Correspondence Analysis, Reconciliation Act for a customer or vendor.

Setting up an agreement on the Sales & Receivables/Purchases & Payable Setup page

Before registration of new sales agreements, it is necessary to configure some settings. To do this, follow the steps outlined below:

1. Choose the icon, enter Sales & Receivables Setup, and then choose the related link.
2. On the Dimensions tab, fill out the fields listed in the following table:

Field	Description
Customer Agreement Dim. Code	Select a dimension code for agreements.
Synch. Agreement Dimension	Select this field to create a dimension value code after agreements are created. The dimension value codes are equal to the agreement codes.

3. On the Number Series FastTab, specify the number series for automatic numbering of customer agreements in the Customer Agreement Nos. field.

To register purchase agreements, follow these steps:

1. Choose the icon, enter Purchases & Payables Setup, and then choose the related link.
2. On the Number Series FastTab, specify the number series for automatic numbering of vendor agreements in the Vendor Agreement Nos. field.

Creating a new agreement

The procedure outlined below shows how to create a Customer Agreement, but the procedure for a vendor is similar and is carried out on the Vendor Card page.

1. Choose the icon, enter Customers, and then choose the related link.
2. On the Customers page, select the required customer.
3. On the Customer Card page, select Navigate > Agreements.
4. On the Customer Agreements page, select Create. A new customer agreement card will open.
5. The agreement number will be assigned in accordance with the configured number series on the Sales & Receivables Setup page.
6. Fill out or change the field values in the customer agreement card.
7. Enable the Active option so that the agreement is available for selecting in the sales documents.
8. If the customer agreement is set up to synchronize with dimensions, click Related > Agreement > Dimensions to verify that the appropriate code and dimension value have been created for the customer agreement.

Creating an agreement based on Incoming document

With the Incoming Document, you can add necessary files to the system, which can later be converted into records. For more detailed information about incoming documents, refer to the Incoming documents article.

To create a Vendor or Customer Agreement based on an Incoming Document, follow these steps:

1. Choose the icon, enter Incoming Documents, and then choose the related link.
2. On the Incoming documents list page, click New
3. On the Incoming Document page, attach the relevant file by clicking Prepare > Attach File. In the window that appears, drag and drop or upload the file from your computer.
4. The name of the uploaded file will automatically be populated in the Description field on the General tab, and you can modify it if needed.
5. On the Financial Information tab, select:

• Account Type - vendor or customer,
• Account No. - vendor or customer system number.

6. To create an agreement, click Home > Create Manually. In the window that appears, select the type of document you wish to create - Vendor Agreement or Customer Agreement - and click OK. This will open the Agreement Card.
7. In the Agreement Card, under the Incoming Documents section, a record will be added with a link to the Incoming Document.
8. In the Incoming Document from which the contract was created, on the General tab, the Record field will display a link to the corresponding agreement card.
9. If necessary, you can delete the record in the Incoming document. To do this, click Incoming Document > Remove Reference to Record and confirm the deletion.

Setting up Customer and Vendor Agreements

The following procedure shows how to set up an agreement for a customer. The procedure for a vendor is similar and is performed on the Vendor Card page and on the Purchases & Payables Setup page.

Setting up an agreement on a customer card

1. Choose the icon, enter Customers, and then choose the related link.
2. Select a related customer from the list.
3. On the Agreements fastTab, fill out the fields listed in the table below.

Field	Description
Agreement Posting	Select the Mandatory value to post customer agreements. With this setting, the Agreement No field is required for posting sale documents. The Optional value allows you to carry out transactions with the customer without having to enter the agreement number in the documents. This is useful if, in general, accounting with the customer is maintained in terms of agreements, but some individual operations are carried out without an agreement. The No Agreement value is used if accounting with customer isn't maintained in terms of agreements.
App. With Agreements	Select this option if you want to apply a customer’s operation based on agreements. This means that applying will be possible only if entries have the same agreement number.

Agreement Approval Workflow

Automating the approval of agreements with customers or vendors before their activation is possible using Workflows. This process is crucial due to the information contained within the agreements, such as the agreement currency code, agreement amount, payment terms code, overall business group, VAT business group, and more.

Setting Up Approval Workflows for Agreements

Before starting to use the approval workflow for agreements, you need to:

1. Configure Workflow Users,
2. Configure Approval Users,
3. Determine how users will receive notifications for the steps in the workflow.

The setup is similar to other approval workflows.

1. Open Workflows through the Search function.
2. Select the New Workflow from Template option.
3. Choose the appropriate template — Customer Agreement Workflow or Vendor Agreement Workflow, as applicable.
4. Select the users who will be responsible for approving the agreements.
5. Set the response to the Approval Request event to Activate Customer Agreement (or Vendor Agreement), as applicable.
6. Configure the necessary filters (by currency code, agreement amount, dimensions).
7. Check the Enabled box for the workflow.

Business Process for Agreement Approval

To activate an agreement with a customer or vendor, you need to Send Approval Request from the agreement card. Once the agreement is approved, it will immediately change its status to Active = YES.

See Also

G/L Source Turnover
G/L Account Correspondence Analysis Incoming documents
Set up a sequence of workflow users
Set up approval workflows
Set up approval users
Create workflows to connect tasks in business processes
Approval workflow notifications