> ## Documentation Index
> Fetch the complete documentation index at: https://docs.beaconrevenue.io/llms.txt
> Use this file to discover all available pages before exploring further.
# Contract intelligence — what have we agreed with each customer?
> How Contract intelligence keeps a contract record for every subscription and every open deal, what it produces today, what you see on its page, what it needs, which modules depend on it, and what it does not calculate yet.
**Contract intelligence** answers one question: *What have we agreed with each customer, does it keep to Finance's limits, and how likely is it to renew?* Every morning it makes sure there is a contract record for every subscription in your billing and every open deal in your CRM, checks that every running subscription rests on a contract, adds up what is under contract by segment, and converts anything in another currency into the one you report in. It belongs to the Sales family — see [Modules](/modules/overview).
This page describes the module as it runs today. The contract records, Coverage, the contract totals and Add contract are live. **Contract health, forecast confidence, the Finance guardrail check, template alignment and the alerts are designed and not calculated yet** — how four of the five parts of the health score turn into a number is not yet written down. [Contract intelligence — how it is calculated](/definitions/contract-intelligence) sets out every rule the live figures follow.
## What it does
A contract is where the terms live — how long it runs, when it renews, how often it is billed, how many days a customer has to pay, what discount was given. Billing holds the start date, the product and the revenue, and almost nothing else. Contract intelligence puts the two together.
Once a day, after your tools have synced, it:
* **Opens a contract record for every billing subscription**, once Setup says *Start from billing*. The record carries what billing knows — the customer, the start date, the product, what the subscription brings in a year — and says it rests on **billing alone** until someone adds the signed contract or your standard online terms.
* **Opens a draft for every open deal.** A deal is a contract not yet signed. The draft is the same record, filled in as the deal moves and confirmed at signature. It carries the deal's amount, and its term and billing interval where the deal holds them.
* **Checks coverage both ways** — how many running subscriptions rest on a signed contract or your online terms, and how many signed contracts no subscription is billing.
* **Adds up what is under contract** for the whole company, each size group, each customer-fit band, each country, each status and each basis, in your reporting currency.
* **Draws the 12 months ahead** — what is signed, and what renews weighted by the standard chance of renewing — once your contracts carry a renewal date or a term.
Beacon never writes into your billing or your CRM. A term a person typed in, or read from a signed contract, is never overwritten by the morning run, and nothing is ever deleted.
## What it produces
Its headline is four figures. Two are worked out every morning; two are designed and not calculated yet.
| KPI | What it measures | Today |
| - | - | - |
| [**Contract coverage**](/definitions/contract-coverage-rate) | The share of your running subscriptions that rest on a signed contract or your standard online terms, rather than on billing alone | Produced daily |
| [**Contracted ARR**](/definitions/contracted-arr) | The yearly value of every running contract added up, in your reporting currency | Produced daily |
| **Contract health** | A 0–100 score for each contract from five weighted parts — how complete it is, whether it keeps to Finance's limits, how close it is to its template, renewal confidence and forecast accuracy | Not calculated yet — four of the five parts have no scoring rule written down |
| **Forecast confidence** | How far a contract's forecast can be relied on, from 0 to 100 — the same score that decides whether it may enter the committed pipeline or the board forecast | Not calculated yet |
The first two names link to their definitions, which also say how the [Data API](/api-reference) and [MCP](/mcp-tools) will carry them — neither serves them yet. Contract health and forecast confidence get their definitions when they are calculated.
Behind them it also produces:
| What | What it tells you | Today |
| - | - | - |
| **A contract record for every subscription and every open deal** | Who, since when, what for, what it is worth a year, and what the record rests on | Produced daily |
| **Coverage, both ways** | Subscriptions missing a contract, largest first, each with *Add contract*; and signed contracts that billing is not invoicing | Produced daily |
| **Contract value by segment** | Average and median yearly value of a running contract, by size group, customer fit and country | Produced daily |
| **Contract analytics** | Contract length, payment terms, discount, billing frequency and renewals ahead by quarter | Shown once contracts carry those terms |
| **Renewals within 90 days** | Contracts reaching their renewal date in the next 90 days, and their yearly value | Shown once contracts carry renewal dates |
| **The 12 months ahead** | Monthly recurring revenue from contracts, month by month: signed, renewing × its chance, new business | Signed and renewing shown once contracts carry a renewal date or a term; new business not calculated yet |
| **Suggested templates** | One per size group, from what your billing shows — customers, average a year, usual billing | Produced daily |
| **Contract health, forecast confidence, the five parts** | How sound each contract is and how far its forecast can be trusted | Not calculated yet |
| **Guardrail status and template alignment** | Whether each contract keeps to Finance's limits and how far it strays from its template | Not calculated yet |
| **Alerts** | Six rules — missing fields, a guardrail breach, drift from the template, a renewal at risk, a deal won with no contract, and a disagreement with the Sales forecast | Built, none sent |
## How the records are built
| Rule | What happens |
| - | - |
| **One record per subscription** | Once Setup says *Start from billing*, every billing subscription gets a record marked **Billing only**. It is Active while billing says the subscription is running and Ended when it stops |
| **One draft per open deal** | Every open deal gets a record in the status **In the pipeline**, named *Draft from the deal*. When the deal is no longer open, the draft is left as it is |
| **The yearly value** | Each record carries one line per product, priced at what billing holds for the latest billing month. The yearly value is your data store's own sum over those lines — Beacon's code never adds it up |
| **What a record rests on** | **Billing only**, **Signed contract** or **Online terms**. Saving typed-in terms moves a record to *Signed contract*; *Use online terms* moves it to *Online terms* |
| **Terms are never overwritten** | A term typed in, or read from a signed contract, is kept. The morning run writes only the fields it owns, and only when they changed |
| **Other currencies** | A contract in another currency enters the totals at its value in your reporting currency, converted at the exchange rate for the day of its latest billing date, held until the next. A contract with no currency on record, or no stored rate for that day, is left out of the totals and counted — never assumed to be in your currency |
| **The 12 months ahead** | Signed value is each running contract's yearly value ÷ 12 for every month inside its term. Past the term end, the value renews at the standard chance for that contract year — 80% at the end of a paid pilot, 90% for year 1, 95% year 2, 96% year 3, 97% year 4, 97.5% from year 5 — applied once, never compounded |
Every figure is a count or a sum worked out by fixed, written rules, so the same billing and the same deals always give the same figures. The full rules are in [Contract intelligence — how it is calculated](/definitions/contract-intelligence).
**The scores — designed, not calculated.** Contract health has five parts with fixed weights. Changing the weights is the account owner's decision; Beacon never changes them on its own.
| Part | Weight | What it will measure |
| - | - | - |
| **Complete** | 30% | How much of the contract is filled in with checked values, for the stage the deal is at |
| **Within the guardrails** | 25% | Whether the terms stay inside Finance's limits — discount against the margin it leaves, payment terms, and the contract's size against what a customer must be worth |
| **Close to its template** | 20% | How far the terms have moved from the usual contract for the customer's segment |
| **Renewal confidence** | 15% | The chance of renewing at this point in the contract, against the template's usual chance — moved by churn risk and product usage |
| **Forecast accuracy** | 10% | How closely real invoices and payments have followed the contract's forecast |
Forecast confidence comes from three of the parts — complete 50%, close to its template 30%, forecast accuracy 20%. Under 60 a contract's forecast is flagged and kept out of the committed pipeline without sign-off; under 70 it is kept out of the board forecast unless Finance includes it; under 40 it is indicative only. Finance's standard limits are a gross margin of at least 65% after discount, a discount of at most 25%, payment terms of at most 60 days, and lifetime value of at least 3.0× the cost to win the customer. Only Finance changes them. None of the scores is calculated today, because how four of the five parts turn what Beacon reads into a number from 0 to 100 — and which fields each deal stage needs — is not yet written down.
**Six statuses.** A record is **In the pipeline** (a deal is open), **Expected new deals** (not opened yet — from Sales capacity, not built), **Signed, not started**, **Active**, **Renewing** (within 90 days of its renewal date) or **Ended**. Only signed, active and renewing contracts count as under contract.
## What you see on its page
In Beacon, open **The Brain** and choose **Contract intelligence**. The banner shows recurring revenue on billing by segment, how many of your running subscriptions have a contract on record, and that contract health is not yet calculated. The page has six tabs:
* **Overview** — monthly recurring revenue for the last 12 months on billing, or the 12 months ahead once any contract has a renewal date or term, by total, segment and customer fit; the chain from an open deal to the Sales forecast; and what the module reads and feeds.
* **Dashboard** — contracted revenue by segment and customer fit; renewals within the next 90 days; the module's own charts — contracts by status, renewal risk by contract year, how much of the forecast rests on firm terms, and whether contract intelligence is working — which read **Not yet calculated** or **Needs renewal dates** today; and six contract analytics — contract length, payment terms, contract value, discount, billing frequency and renewals ahead — sliced by segment, customer fit or country.
* **Signals & alerts** — what the module watches, its six alert rules, and that none is sending.
* **Scorecard** — the five parts and their weights, the steps from parts to scores, Finance's guardrails, the standard renewal chances, and the rules. Every score reads **Not yet calculated**.
* **Contracts** — five views. **Contracts**: every record, 25 at a time, with search and filters by status; select one to see its terms, where each came from, and its own forecast and next invoices. **Coverage**: every subscription without a signed contract, largest first, each with *Add contract* — type in the terms, or use your standard online terms — and the reverse check, contracts with no running subscription. **Templates**: a suggested template per size group from your billing. **To review** and **Add contracts** — uploading signed PDFs for Beacon to read — are shown and marked **After launch**. **What a contract holds**: the 28 things a contract holds, and which of them the record keeps today.
* **Setup** — the module's seven questions, with the answers in use. Answers are saved from this tab.
The page reads **Not measured yet** until your CRM is connected, **Coming** until the first morning run has written, and **Running with gaps** once it has. It does not read **Live** yet, because the scores are not calculated.
## What it needs
| Tool | | What it adds | Checked today |
| - | - | - | - |
| **CRM** (HubSpot) | Needed to start | Open deals — each one becomes a draft contract | Yes |
| **Billing** (Stripe) | Adds the records | Every subscription becomes a contract record with its start date, product, revenue and currency; the last 12 months of recurring revenue | Yes |
| **Your contracts** | Adds the terms | Term, renewal date, billing, payment terms and discount — typed in on the Coverage view today; read from uploaded PDFs after launch; from a contract tool such as DocuSign, PandaDoc or Ironclad later | Typed in only |
| **Exchange rates** | Adds detail | The European Central Bank's reference rates, held by Beacon, for contracts in another currency | Read when a contract is in another currency |
| **Accounting** | Adds detail, later | Gross margin by product, for the margin guardrail | Not yet |
See [Connect your tools](/connect-your-tools) for how each connection is made.
## Reads from
| Module | What Contract intelligence uses it for |
| - | - |
| [**Data model**](/modules/data-model) | Your products, subscriptions and deals in one shape, and your reporting currency |
| [**Data integrity**](/modules/data-integrity) | Which fields are filled and how reliable each record is. Under 80, both scores will come down with it — not read yet |
| [**Segments**](/modules/segments) | Each customer's size group, for the totals by segment and the suggested templates |
| [**Customer fit**](/modules/customer-fit) | Each customer's fit band, for the totals by customer fit |
| [**Segment revenue paths**](/modules/segment-revenue-paths) | Usual terms, billing and expansion per segment, before your own contracts build up — not read yet |
| **Deal likelihood** | Each open deal, and later its chance of closing for the Sales forecast |
| **Pipeline velocity** | Stage times and conversion, for when contracts are likely to start — not read yet |
| **Churn risk** · **Usage intelligence** | Renewal chances and how fast customers grow into their contract — not read yet |
| **Cash flow** · **Margin** | When customers really pay, and gross margin by product for the margin guardrail — not read yet |
## Which modules read it
| Module | What it uses Contract intelligence for |
| - | - |
| **Sales forecast** | The confirmed terms of every signed and active contract — it cannot project revenue without them |
| **Revenue forecast** | Contracted ARR, renewals and the future pipeline as revenue events |
| **Revenue records** | Each contract's monthly revenue, invoice dates and deferred revenue |
| **Customer value** | Products, contract value, renewal chances and expansion for each customer |
| **Customer revenue forecast** | Renewal chances by contract year and expected expansion |
| [**Customer fit**](/modules/customer-fit) | Signed terms against what fit expected before the close |
| [**Signals**](/modules/signals) | Contracts signed, started, renewed and ended, as outcomes — a *Renewal completed* signal is admitted and switched off until contracts carry renewal dates |
| **Forecast confidence** | How complete and reliable the contract data under the forecast is |
| **Sales capacity** · **Lifecycle economics** | Template economics for new business, and remaining lifetime margin |
All of these read the scores or the confirmed terms, and today the records rest on billing alone with no score, so none of them receives anything from this module yet. The **Modules** page in The Brain shows which modules are running for you.
## Alerts
Six alert rules are built:
| Alert | When it fires | Goes to |
| - | - | - |
| **Contract missing fields** | A contract is less complete than its deal's stage needs. Urgent for fields needed before *Contract sent* | Deal owner, then the sales manager — on the deal in HubSpot |
| **Terms past a Finance guardrail** | Confirmed terms go past a Finance limit — discount, the margin it leaves, or payment terms. The contract cannot start or count in a forecast until Finance decides. A decision point, not an error | Deal owner, sales manager and Finance lead — Slack and the Finance review queue |
| **Contract far from its template** | A contract scores under 60 on closeness to its template. Kept out of the committed pipeline until reviewed | RevOps lead and Finance lead — Workplan |
| **Renewal at risk** | An active contract's renewal confidence falls under 70. Urgent when the renewal is under 60 days away and confidence under 50. If not recovered in 21 days, the CRO and account owner are told | CS owner, CS lead and Finance lead — Slack |
| **Deal won with no contract** | A deal is marked won and no contract record follows within the hour. The deal goes back to its previous stage until one exists | Deal owner and RevOps — HubSpot and Slack |
| **Contracts and the Sales forecast disagree** | Contracted revenue and the Sales forecast differ by 15 points or more for the same period. Automatic publication of the forecast pauses until it is settled | Finance lead and RevOps |
**No alert is sent yet.** Every contract alert needs the scores, which are not calculated; the first to start will be *Contract missing fields*, once the fields each stage needs are written down. Who gets the alerts is picked from your Beacon users in Setup.
## Setup questions
* **Where are your contracts kept?** Recommended to start: signed PDFs, uploaded and confirmed. Other answers: a contract pipeline in HubSpot; a contract tool; nowhere in one place yet.
* **What about the customers you already have?** Recommended: start from billing, then fill in the terms. This is the answer that opens a contract record for every subscription.
* **Finance's limits on contract terms.** Recommended: use the standard limits — discount at most 25%, payment terms at most 60 days. Finance answers.
* **Your usual contract, per segment.** The starting term, billing and payment terms for each size group — for example 36 months, billed yearly, 30 days to pay for Enterprise; 12 months, billed monthly, 14 days for small business. Every new deal's contract starts from it until the real terms are confirmed.
* **Which contract details must be in by which stage?** Recommended: products and amount by *Proposal*; term, billing and payment terms by *Contract sent*; start date when won.
* **Do you run paid pilots before the subscription?** If yes, contracts carry the pilot's length and price, and the standard chance that a pilot converts is 80%.
* **Who gets the alerts?** The Finance lead, RevOps lead and CS lead, picked from your Beacon users. Waits for your users.
Answers are saved from the Setup tab and the module runs on them. How you segment your customers, whether you have a sales team and which currency you report in are asked once, in Company DNA, and used here too.
## What is not calculated yet
* **Contract health**, **forecast confidence** and the five parts behind them.
* **Whether each contract keeps to Finance's guardrails**, and **how close it is to its template** — there are no templates yet, only the suggested ones.
* **The chance of renewing for your own company** — the standard chances are used until 20 completed contracts per segment let Beacon learn yours.
* **New business in the 12 months ahead** — it comes from Sales capacity, which is not built.
* **Each contract's own revenue forecast and next invoices.**
* **Reading signed PDFs** — *Add contracts* and *To review* are after launch.
* **Alerts** — none is sent yet.
* **Contract coverage and contracted ARR through the Data API and MCP** — defined, not served yet.
## Related
The ten module families and which modules are available today.
Every rule the live figures follow — the records, the yearly value, coverage, typed-in terms, other currencies and the 12 months ahead.
The share of running subscriptions resting on a signed contract or your online terms.
The yearly value of every running contract, in your reporting currency.
How long a contract runs, and the three states it passes through.
One reporting currency, many billing currencies, and the rates Beacon uses.
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