You can enter an agreement representing a purchase order, retainer letter, or any other funding agreement you make with a customer in any currency regardless of your project functional currency. When you record an agreement, you can specify payment terms for invoices against the agreement, and whether there are limits to the amount of revenue you can accrue and bill against the agreement. See also Agreement Templates and Quick Agreement/Funding Projects.
If it is required by your business, you can apply advance receipts to an agreement.
From the Agreements window, you can open the Funding window to allocate funds to one or more projects (or to top tasks within a project), and to see how much unused funding remains for an agreement. Each agreement that funds a project can be entered in a different currency.
For any agreement, you can review the revenue and billing activity associated with the agreement, such as the amount of revenue accrued, the amount invoiced, and the amount of funding that is allocated and has a baseline.
All revenue and invoices in Oracle Projects are recorded against an agreement, and all items that accrue revenue against an agreement subsequently bill against the same agreement.
To enter an agreement
Navigate to the Agreement window.
Enter the Customer who is providing the agreement funding.
Enter the name of the operating unit to which the agreement belongs.
Enter a Number to identify this agreement, such as the customer's purchase order number.
The agreement number must be unique for this customer and agreement type, although two customers can each have an agreement with an identical agreement number.
Attention: You cannot change this number once you create an invoice against this agreement and interface the invoice to Oracle Receivables.
Enter an agreement Type.
Choose the currency code of the agreement from the list of values. The list of values is restricted to the currencies defined in Oracle General Ledger.
Note: The currency field can only be updated if the Multi Currency Billing implementation option is enabled at the operating unit and the funds have not been allocated.
Enter the Amount of this agreement.
Enter the payment terms (defined in Oracle Receivables) for any invoices funded by this agreement.
Choose the Revenue Hard Limit or/and Invoice Hard Limit check box to impose a hard limit on revenue accrual and invoice generation for projects funded by this agreement. Otherwise, Oracle Projects imposes a soft limit.
A hard limit prevents revenue accrual and invoice generation beyond the amount allocated to a project or task by this agreement. A soft limit issues a warning when revenue accrual and invoice generation exceed the amount allocated to a project or task.
If advance receipts application is required by your business, enable Advance Required.
Enter a start date and an expiration date for the agreement. You can leave the expiration date blank if you do not want the agreement to expire. If you generate draft revenue or an invoice for projects funded by this agreement after the agreement expiration date, Oracle Projects creates distribution warnings for revenue and invoices.
Optionally enter a Description of this agreement.
Enter the administrator of the agreement.
Note: An agreement administrator can be a future-dated employee. However, this is not recommended or likely, because agreement owners are almost always current employees.
Enter the name of the organization that owns the agreement.
Note: You can choose any project owning organization (in the project owning organization hierarchy assigned to the operating unit) as the organization that owns the agreement.
Enter a Creation Date.
If you want to control the order in which the Agreement funding is consumed, then enter a Billing Sequence Number.
Optionally enter Customer Order Number and Line of Accounting.
Save your work.