The service agreement functionality handles the automatic invoicing of service agreements as well as the process of recalculating and updating agreement prices.
The Service agreement file
Service agreements that have been concluded with customers are entered into the Service agreement file whereby the period of validity, price and other conditions of the agreement can be specified. Maintenance is performed via the Work with service agreements routine.
Connect customers
The Service agreement number is a unique identification, and the connection to a main customer is made by completion of the Customer number field. Additional customers can also be connected to the same agreement number.
Connect objects
More than one object can be connected to the same agreement number. Objects may have different customers. If that is the case, all object customers must be assigned to the agreement number.
Automatic agreement order generation
Automatic agreement order generation controls the routine invoicing of service agreements. Using this function, the entire Service agreement file is checked against the selections made.
After generation
The created agreement order will receive status 45, ready for invoicing. If the order type was specified as having direct printing of invoice, the order will be invoiced immediately. The agreement number, text (if any) and validity period are printed on the invoice.
Next generation date
The next generation date in the Service agreement file is calculated by the system, based on the actual next generation date plus the invoice generation interval. If the calculated date is outside the period of validity for the service agreement, the Service agreement file will not be updated.
Simultaneously with the generation of agreement orders, information is printed containing all generated agreement orders and data regarding: orders for direct invoice printing or missing service item codes in the Item file. The list will also indicate when the new calculated next generation date is outside the period of validity of the agreement.
For more information, see Generate service agreement invoice orders.
Manual agreement order entry
Agreement orders can be manually entered using the ordinary Work with service orders routine. However, before the agreement order can be entered and invoiced, the service agreement must be entered in the Service agreement file.
The service agreement number is entered manually at order line entry. The conditions of the service item for the entered service agreement will be applied. Price and currency are retrieved from the Service agreement file.
Cost price retrieval is not recommended for the service agreement fee. This has been taken care of by using the right kind of fictitious item type for the service item. The service item must also be of type service agreement fee in the Service item group table.
Note: The conditions in the Fictitious item type table for the service agreement item should be as follows:
- Fictitious zero cost allowed = YES
A zero cost is allowed during entry of a line for this service item. - Fictitious standard cost retrieval = NO
The standard cost is not to be retrieved for the service item, as the default, when entering a line.
The entered order will receive status 45, ready for invoicing. If the order type was specified as having direct invoice printing, the order will be invoiced immediately.
Invoicing and accounting
The invoicing of agreement orders follows the normal procedure in Distribution, with the following exceptions:
- The agreement number is printed on the invoice.
- Agreement orders can be merged independently of other order types. This is controlled by the Merge agreement invoices field being set to YES in the Customer file.
- The Last invoice date field is updated with today’s date.
- The Last invoice number field is updated with the invoice number used.
- The contents of the Allocation periods field is copied to the Last allocation periods field.
- The value of the order line containing the agreement number is added to the Invoiced fee YTD field in the Service agreement file.
The generation of accounting transactions for service agreement invoices always uses the transaction types for agreement fees. See About transaction types used in Service for more information.
Change the agreement price
It is possible to change the price simultaneously for the group of agreements. The recalculation is done using a change percentage. See Recalculate and update service agreement price.
Enquiries and printouts
- Agreement file enquiry
- Service agreement list
- Generated agreement orders list