About fixed-price contracts

You may offer services at a price that is not based on the service's usage, as with a fee for internet connection or domain name registration. You generally collect such a fee on a schedule, for example, once a year or on a monthly basis.

Consider an example: You offer domain name registration and maintenance for a year with renewal.
To implement such a scenario, do the following:

1. By using the Non-stock items (IN202000) window, create Domain name registration and Maintenance non-stock items that represent services you offer.
2. In the Contract items (CT201000) window, configure a contract item as follows:
   • In the Setup item field, select the Domain name registration non-stock item, and specify the pricing policy for the setup item. You provide a domain name and invoice for it during the contract setup stage.
   • In the Renewal item field, select the Maintenance non-stock item, and specify the pricing policy for the renewal item. You provide a maintenance item only after renewal and invoice for it when the contract is renewed.
   • To invoice the customer for maintenance during the first year, select the Collect renewal fee on activation check box.
     The fee for the renewal item will be included in the first invoice.
   • Fill in other required parameters (and any optional ones) at your discretion.

   For details on configuring contract items, see: Configure a contract item.

3. By using the Contract templates (CT202000) window, create a contract template as follows:
   • Set the Contract type to Renewable and the Duration to 1 Year.
   • Specify Year as the invoicing period.
   • In the Invoicing schedule starts on field, select setup date.
   • Fill in other required parameters (and any optional ones) at your discretion.
   • Add the contract item you have configured to the contract template.

     For details on configuring a contract template, see: Configure a contract template.

4. Set up and activate the contract. An invoice for domain name registration and maintenance is issued automatically as the result of the setup procedure. For more information, see: About contract setup and activation.
5. Renew the contract in a year. An invoice for maintenance only is issued automatically as the result of the renewal procedure.
   For details, see: About contract renewal.

You can combine fixed-price contract items with ones that are invoiced based on usage.
For example: Suppose that you provide bandwidth or disk space along with a domain name. In this case, you could include in one contract item a domain name as the setup item and some quantity of disk space as the recurring item, or you could create separate contract items.