---
title: Account Contract Example
description: "## Summary In this example, we will set up an account contract on an account and bill a package in order to trigger contract commitment charges. We will also cancel the account in order to apply contract termination fees. For…"
url: "https://learn.logisense.com/docs/971341868/"
updated: "2026-03-18"
category: Accounts / Account Examples
tags:
  - "lsb-configuration-process"
---

# Account Contract Example

## Summary

In this example, we will set up an account contract on an account and bill a package in order to trigger contract commitment charges. We will also cancel the account in order to apply contract termination fees.

For additional details on the fields presented on the account contract screen see the [account contracts](https://learn.logisense.com/docs/338329937/) screen help.

## Prerequisites

- For package commitments to be applied an account package must be added to an account. See the [account package configuration example](https://learn.logisense.com/docs/624951326/) for instructions on how to add an account package to an account
- For fees to be configured on a contract you must have services setup as ‘Service Type’ ‘Fee’. See the [service type configuration example](https://learn.logisense.com/docs/634748958/) for instructions
- Account contract status types need to be setup in order to configure the statuses that an account contract starts in, renews to, and changes to when cancelled. See the [account contract status types configuration example](https://learn.logisense.com/docs/724107364/) article for a sample configuration

## Sample Configuration

### Adding a Contract to an Account

1. Log into LogiSense Billing
2. [Create a new account](https://learn.logisense.com/docs/623640687/) or select an existing one
3. Go to the **Account**/**Profile**/**Contracts** screen
4. On the right side of the **Account Contracts**heading, click the **Add Account Contract** icon
5. The **Add Account Contract** panel will load, enter a **Name** for the account contract and select a **Status**
6. On the **Terms** tab, enter the Term details (Term, Unit, Start Date, how the contract renews and what contract status it will switch to when it is canceled). In this example we will create a two year contract which starts on Nov 1st and expires at the end of the two year period without renewing
7. Click **Save** to add the account contract

### Adding a Commitment to Account Contract

1. Load the account that contains the contract
2. Go to the **Account**/**Profile**/**Contracts** screen
3. Select an existing account contract and click on the **Commitments** tab
4. Under the **Commitment Type** field, select **Package**
5. Click the **+Add** button to add the commitment type and a pop-up modal will load
6. On the **Add Commitment** modal enter the Commitment details (Penalty Service, Commitment Period, Commitments. etc.). In and example configuration the contract is set to a minimum commitment of $100 worth of account-package charges per month for the first 6 months of the contract. After six months no commitments charges will apply
7. Click **Add** to add the commitment
8. Click **Save** to save the commitment to the account contract

### Adding a Termination Fee to the Account Contract

1. Load the account that contains the contract
2. Go to the **Account**/**Profile**/**Contracts** screen
3. Select an existing account contract and click on the **Termination** tab
4. On the **Termination Tab** select the **Transaction Service** and optionally enter a **Transaction Description**
5. Click the **Add Termination Penalty** action button on the right to add the **Early Termination Penalties**
6. On the pop-up **Add Termination Penalty** window, enter the Early Termination Penalties details (Frequency, Period, Flat Fee. etc.). An example is an early contact termination fee of $20 has been setup to be applied if the contract is canceled within the first six months of the contract period
7. Click **Add** to add the termination penalty
8. Click **Save** to save the termination penalty to the account contract

 Contract fees will only be applied during billing if the Bill Run setting ‘**Run Contract Commitments**’ is enabled

When billing an account the contract commitment will apply if the account-package charges do not meet the $100 a month commitment per the configuration shown in this article above.

**Contract Termination Fees**

When a contract is canceled and termination fees are applicable those fees will be applied during billing.