Fixed period contracts have an ongoing commitment. This creates a certain liability (obligation). Let’s say you sign a 12-month contract with the following fees:
Start-up fee € 1,000
Monthly contract fee € 500
Annual fee € 1,000
This would mean that at the start of the contract term you have a liability (remaining fees) of € 8,000. As the months go by and you pay the fees, the contract’s liability (remaining fees) decreases.
In Contractpedia only Fixed period expense contracts create a liability. No fixed period contracts would usually be pay-as-you-go services with no long-term commitment.
When you create a Fixed period contract, Contractpedia creates a Liabilities list found on the Contract details page. If you scroll all the way down, you will see a tab called “Liabilities”. Here is how it looks like:
Date: This is the start date of the contract and then each following month during the contract’s lifecycle.
Remaining fees: Contract’s remaining liabilities which are the remaining money that should be paid on this contract.
Total fees: This is a total of all fees to be paid on the contract during a particular month.
Fees hover: You can create more than one fee per contract. Then, if you hover your mouse over an amount in the “Total fees” column, you will see a pop-up window containing a broken-down list of the various fees on the contract.