Reference: Contract Line Types for Customer Contracts

Workday provides these contract line types that you can use to create customer contracts:

Contract Line Type	Actions	Billing Options	Revenue Recognition
Cost Reimbursable	Create installment billing schedules to deduct cost reimbursable amounts from prepayments. Create transaction billing schedules to bill direct costs and facilities and administration incurred throughout the billing cycle. Use this line type on award contracts only.	Installments for prepaid billing consumption Transactions	Transaction completion or settlement
Fixed Amount	Set the amount for goods and services independent of activity or resources.	Installments Transactions for order fulfillment	Installments Transactions for order fulfillment
Fixed Amount - Billing Only	Set the total amount to bill for a sales item bundle. Example: You sell a laptop bundled with a docking station and monitor.	Installments
Fixed Amount - Revenue Only	Set the amount to recognize revenue for individual items in a sales item bundle. Use this contract line type with the Fixed Amount - Billing Only line type or for revenue recognition linked contracts. Example: You sell a laptop bundled with a docking station and monitor and want to recognize revenue on the individual items.		Installments
Fixed Fee Project	Set the project value based on the scope and product when you create the contract. Contracts created from Services CPQ quotes support this contract line type. See Reference: Quote Line to Contract Line Mapping.	Installments Milestones	Installments Milestones Percent Complete
Intercompany Expense	Set the expense rates between legal entities of global organizations for intercompany expenses.	Intercompany transactions
Intercompany Supplier Invoice	Set the supplier invoice rates between legal entities of global organizations for intercompany supplier invoices.	Intercompany transactions
Intercompany Time	Set the worker rates between legal entities of global organizations for intercompany time.	Intercompany transactions
Prepaid	Apply prepayments towards installment and transaction contract line amounts. When you select this option, Workday populates Deferred as the Revenue Treatment on the customer contract.	Installments	You don't need to create a revenue recognition schedule.
Project Time and Expense	Charge the project as you incur time and expenses. Contracts created from Services CPQ quotes support this contract line type. See Reference: Quote Line to Contract Line Mapping.	Installments Milestones Transactions	Milestones Transactions
Recurring - Fixed Term	Use this contract line type with variable lines to manage minimum commitments that bill as a set amount on a recurring basis. Example: You create a contract for technical support with minimum monthly fees and other usage-based transaction lines.	Installments	Installments
Subscription		Installments	Installments
Usage-Based	Process your transactions as they occur.	Transactions	Installments Transactions
Value-Based Project	Create revenue installment lines that are based on an estimated amount and aren’t transaction driven. The revenue amount is an estimate. You'll need to balance the difference between final billed and revenue recognition amounts. Bill for projects with variable values based on external factors. Set the amount for the contract item, independent of resources used or time expended, and track the recurring transactions. Use this line type on projects contract lines. Use a revenue recognition method that isn't Transaction .	Installments Milestones	Installments Milestones
Variable Amount - Non Project	Create revenue installment lines based on an estimated amount for goods and services. The revenue amount is an estimate. You'll need to balance the difference between final billed and revenue recognized amounts. Use this line type on goods and services contract lines.	Installments	Installments Milestones

Setup Considerations: Prepaid Billing Using Consolidated Billing Schedules

Create Customer Contracts