A Contract is a ScaleXP created object that contains parameters about an individual agreement with a customer or subscription.
Contracts house information like Contract Start Date, Contract End Date, Issued and Expected Invoices based on the term.
Contracts can be created automatically using ScaleXP Invoicing For Hubspot. This takes the parameters of your closed won hubspot deal as well as the complete invoice schedule created in the Hubspot deal to build your contracts.
If you do not use ScaleXP Invoicing, you can still manually create your contracts via Invoice Matching, or by manually adding a contract at the top right of the Contracts page.
The primary purpose of a Contract is to build a renewals schedule based on the current active agreements/contracts with your customers.
These articles may help you:
View/Manage your Renewals Schedule
Invoice Matching/Booked vs. Billed
Contracts contain the invoice schedule associated with a given agreement for both issued and expected invoices.
Go to Customers (Top Navigation Menu) > Contracts (Left Sidebar)
Here you'll see a list of existing contracts which you can filter by Customer or by Contract Status.
To create a new Contract, either follow the steps in Invoice Matching or click Add Contract in the top left.
Here you'll select an Accounting Customer and fill in the parameters of this contract.
| Field | Description |
| Start Date | When this Contract should Start |
| Term in Months | How long this Contract will run for |
| Invoice Frequency | How frequently you will be issuing invoices for this deal. The term in months must be compatible with the invoice frequency. (You can’t choose 4 months and Quarterly) |
| Contract Value | The total value of all the invoices you expect on this deal. |
The parameters make it possible to create very simple invoice schedules for your contracts but you have full control to create, delete and modify the invoice schedule in the next step.
The “Add Booked MRR” button at the bottom allows you to recognize “Interim” MRR between the current date and when the contract is expected to start. This is in case you’d like to record this customer in your total customer count and MRR, even before you’re actually earning revenue from them. While not common, some businesses record these as customers in their SaaS metrics because they have an agreement in place.
Do not use this feature if you only count this customer and the associated revenue based on the invoices.
| Field | Description |
| MRR Start Month | The month which you’d like to start recording MRR for this customer for SaaS Metric Reporting. Must be before the Contract Start Date |
| Booked MRR value | The monthly amount you’d like to record for this customer in the interim between the MRR start month and the Contract Start Date. |
Note in this example a start date of 01/05/2024, a term of 12 months, invoiced monthly for £12,000. We have issued the 1st invoice for this contract and expect 11 more based on these parameters.
Clicking Next will progress you to the next step where you review and validate the invoice schedule. Here you’ll see that based on the logic you input in the previous step, ScaleXP has created 12 pending invoices and appropriately set the end date.
Here, you can add/remove/change the pending invoices and the start date and end date before saving. You can also include other issued invoices into this contract using the “Add Issued Invoice” button at the bottom.
When you’re happy with the complete Invoice Schedule, click Save. You’ll now see that a Contract has been created on the Contracts tab and a Renewal has been created on the Forecast Renewals Tab.
Contracts
