The Contract Administration module will automatically create billing schedules and revenue recognition schedules based on general contract attributes such as start date, end date, and billing frequency.
There are special billing and revenue recognition screens that allow you to process a large number of transactions at one time. As actual transactions are processed, the billing schedules and revenue recognition schedules are updated to show the current status of your contracts.
The image below shows the screen in which general contract information is entered. You specify the contract start and end dates, the billing frequency, and the day of the month to bill. You can also choose smooth billing and revenue recognition so that equal dollar amounts will be used each period; for example, if you started a contract in the middle of a month.
This shows an example of a contract that will generate deferred revenue because the billing frequency is quarterly.