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Documentation Index

Fetch the complete documentation index at: https://docs2.zenskar.com/llms.txt

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In Zenskar, a contract is the central digital schema that represents a commercial agreement between a service provider and a customer. It serves as the single source of truth for the system, defining the parameters for generating invoices and calculating recognized revenue. A contract ensures consistency across financial operations by centralizing:
  • What is being sold (products and features)
  • The pricing and billing cadence
  • The rules for revenue recognition
  • Audit trails for financial compliance

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Data architecture

A contract is structured as a hierarchy. This design allows Zenskar to handle everything from simple flat-rate subscriptions to complex, multi-year enterprise agreements with varying terms.

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Phases

A phase is a time-based segment within a contract. It defines specific commercial terms for a set duration, and a contract must contain at least one. Because customer relationships often change over time, phases allow you to model those transitions within a single contract rather than creating separate agreements. Common examples include:
  • Trial periods: A phase with a fixed duration (e.g., 14 days) where products are priced at zero.
  • Step-up pricing: An initial phase with discounted rates followed by a phase at standard pricing.
  • Contract amendments: A new phase capturing updated pricing or product composition mid-term.

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Products and features

Each phase acts as a container for the items being sold:
  • Products: The core units of value, such as subscriptions, usage-based services, or one-time fees. These define the primary pricing models.
  • Features: Specific commercial modifiers or configuration settings, such as tax rules (e.g., Avalara) or volume discounts, that enhance or modify the behavior of products within the phase.

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Parallel workflows

Zenskar operates every contract through two distinct, concurrent workflows. This design supports organizations at various stages of financial maturity.
WorkflowFunctional focusPrimary output
BillingOperational execution of payment terms.Invoices, credit notes, and payment receipts.
Revenue recognitionAccounting compliance (ASC 606/IFRS 15).Revenue schedules and deferred revenue reports.

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Background execution

The revenue recognition workflow runs automatically for all contracts. Early-stage organizations or those using simple cash accounting may not require this output immediately, but the data remains available to support future audits or transitions to accrual-based accounting without requiring system reconfiguration.

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The revenue recognition framework

For businesses subject to ASC 606 or IFRS 15 standards, Zenskar automates the technical execution of the five-step revenue recognition model.

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System boundaries

Zenskar manages the automated transformation of contract data into financial reports, but does not replace professional legal or accounting judgment regarding the validity of an agreement.
  1. Identify the contract: (Out of scope) The user must determine if a legally enforceable agreement exists.
  2. Identify performance obligations: Zenskar identifies distinct obligations based on the products and features configured within each phase.
  3. Determine transaction price: The system calculates total consideration, accounting for fixed and variable components.
  4. Allocate price: Zenskar allocates the transaction price across performance obligations.
  5. Recognize revenue: Revenue is recognized as obligations are satisfied, based on the schedules defined in the contract.
Important: Zenskar manages the commercial structure and financial logic of a contract but does not assess its legal enforceability.

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Contract ingestion methods

To support various quote-to-cash (Q2C) pipelines, Zenskar provides three methods for instantiating contracts. Each suits a different operational context.
  • Automated sync: Direct ingestion from external systems such as CRM (e.g., Salesforce), CPQ, or ERP platforms. Best suited for organizations with existing commercial tooling that should remain the system of record.
  • Manual configuration: Creation via the Zenskar administrative interface for physical or non-standardized agreements that fall outside automated pipelines.
  • Programmatic creation: Use of Zenskar APIs to instantiate contracts directly from custom application logic. Best suited for organizations building proprietary Q2C workflows or requiring fine-grained control over contract structure.

Create a contract via dashboard

Step-by-step guide to creating a contract manually in the Zenskar UI.

Create a contract via AI

Let Zenskar extract contract terms from a raw document automatically.

Create a contract from a plan

Use a pre-built plan template as the starting point for a new contract.

Contract renewal

Configure how contracts behave when they reach their end date.

API reference

Create and manage contracts programmatically via the Zenskar API.