SAGE UNIVERSITYftp.sagesoftwareuniversity.com/lms/cre/CertProg/Newport/handouts/... · NOTE: This lesson focuses on creating and managi ng service agreements. To learn how ... Module

This draft document is provided as a convenience and for use only by individuals participating in Sage's User Feedback Program for Sage Timberline Enterprise. Sage Timberline Enterprise is asoftware application that, as of the date of publication of this document, has not been released to production. Therefore, Sage Timberline Enterprise and all related documentation (including thisdocument) and training materials may change at any time at Sage's sole discretion and without notice. Program participants should not distribute this document to, or share it with, anyone else.

Service Management

Agreement Processing

CERTIFIED COURSE CURRICULUMSAGE UNIVERSITY

NOTICEThis draft document is provided as a convenience and for use only by individuals participating in Sage's User Feedback Program for Sage Timberline Enterprise. Sage Timberline Enterprise is a software application that, as of the date of publication of this document, has not been released to production. Therefore, Sage Timberline Enterprise and all related documentation (including this document) and training materials may change at any time at Sage's sole discretion and without notice. Program participants should not distribute this document to, or share it with, anyone else.

This document and the Sage Timberline Enterprise software may be used only in accordance with the accompanying Sage Timberline Enterprise End User License Agreement. You may not use, copy, modify, or transfer the Sage Timberline Enterprise software or this documentation except as expressly provided in the license agreement.

Visit our Web site at www.SageU.com/CRE, call 1-877-724-3285, or e-mail us at [email protected] to learn about training classes that are added throughout the year.

Information in this document is intended solely as general information with respect to common business issues and is not to be construed as professional advice. Consult a tax or accounting professional for all tax and account related questions. THE INFORMATION HEREIN IS PROVIDED“AS IS” AND ALL WARRANTIES ARE EXPRESSLY DISCLAIMED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY: OF MERCHANTABILITY; OF FITNESS FOR ANY PARTICULAR PURPOSE; OF NON-INFRINGEMENT OF ANY PROPRIETARY RIGHT OF ANY THIRD PARTY IN ANY COUNTRY; OTHERWISE ARISING OUT OF ANY PRODUCT, PROPOSAL, SPECIFICATION OR SAMPLE; AND ANY WARRANTY THAT THE DOCUMENT IS ERROR FREE. No license, express, implied, by estoppel or otherwise, to any intellectual property right is granted by this document. Sage Software may make changes to the information in this document at any time, without notice. Recipient is solely responsible for assessing the suitability of the information and assumes all risk of use.

© 2010 Sage Software, Inc. All rights reserved. Sage, the Sage logos, and the Sage product and service names mentioned herein are registered trademarks or trademarks of Sage Software, Inc., or its affiliated entities. All other trademarks are the property of their respective owners.

01/2010

Service Management Agreement Processing

© 2010 Sage Software, Inc. 1

Agreement Processing

Welcome . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Agreement Workflow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Other Setup for Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Create a New Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Create New Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Activity 1—Enter Agreement Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Approve Agreement Quote . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Activity 2—Approve Quote . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Generate PM Work Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Activity 3—Generate PM Work Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Prepare Agreement Billings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40Activity 4—Create Agreement Billings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46Activity 5—Create Adjustment Billing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Managing Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Activity 6—Amend an Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53What Happens When You Post? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55What If ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Review What You Learned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Agreement Processing Sage Timberline Enterprise

2 © 2010 Sage Software, Inc.

Service Management Welcome


WelcomeWelcome to the Sage Timberline Enterprise course on processing service agreements and scheduling preventive maintenance work.

NOTE: This lesson focuses on creating and managing service agreements. To learn how to enter work order information, refer to the lesson called “Enter Work Orders.” To learn how to invoice non-agreement work orders, refer to the lesson called “Billing Work Orders.”

Transactions in the Training Data SetsIn certain cases, transactions in the data set that you use may show a different year than the illustrations in this book, or than the instructor shows in class. If your data set transactions show a different year, but all other details such as the prefix and account setup, vendor names, and jobs are identical, your data set will correspond to the materials in all respects but the date.

When you complete the activities that involve dates, you may see codes that represent the current year (yycy), prior year (yypy), and next year (yyny). Use the appropriate year based on the data you are using for activities.

For example, if 2009 is the current year in your data and the activity prompts you to enter 2/15/yypy, enter 2/15/2008. If the activity prompts you to enter 2/15/yycy, enter 2/15/2009.

Where to Get Additional Information

Module Help Files

Each module contains an extensive Help system. The Help is your primary resource for reference and how-to information for all tasks. Help is available for whatever window you have open. Help also includes Contents, Index, and Search features that help you locate information quickly.

Use one of these methods to open Help:

Press F1 or click in the window you have open.

Select Search for help on from the Help menu of the Sage Timberline Enterprise Desktop.



Knowledgebase

The Sage Knowledgebase has lots of information about Sage Timberline Enterprise. To access the Knowledgebase:

1. Go to www.sagecre.com.

2. Under Support Logon, click Sage customer website.

3. Type your e-mail address and password, and click Log on.

4. Select your Sage product.

5. Enter your search items and click Search.

Service Management Overview



OverviewAgreement processing includes setting up the agreement for the work to be performed, assigning tasks, scheduling the work, billing the agreement, and defining the renewal process. This lesson shows you how to do these things and more—from setup to renewal of agreements.

When you complete this lesson, you will be able to:

Explain the essential setup for agreements, including types and rate sheets.

Create an agreement quote with services to be provided and billing information.

Approve an agreement quote.

Generate PM work orders.

Prepare billings for an agreement.

Manage agreements, including modifications, renewal, expiration, and termination.

Prerequisites

Before you begin this lesson, you should be familiar with the content of the following lessons.

Lesson

Concepts and Tools

Customers

Service Sites

Recurring Setup




Agreement Workflow

Agreement Quote

Propose agreement work to a customer, including scope and frequency of work with associated pricing and billing information.

Approve/Cancel Quote

Upon customer acceptance, you can approve the quote. If the proposal is not accepted, you can cancel the agreement.

Generate PM Work Orders

Once the quoted work is approved, you can begin to generate the PM work orders for the agreement based on the work schedule.

Perform Agreement Work

The work is assigned to technicians and they perform the work requested. The information about the work completed is entered into Service Management in the work order task.

Bill Agreement Work

Two billing scenarios are possible: one when the work is performed, another based on scheduled periodic billings.

Amend Agreements

In cases where additional services are required for another location or when pricing changes, you can amend the agreement for those new factors in the agreement.

Expirations and Renewals

Expiring agreements require a renewal process. If the renewal is not completed the agreement expires.

Terminate Agreement

If the contract is broken for some reason, you can terminate the agreement.Termination also occurs automatically when amendments and renewals are processed.

Service Management Other Setup for Agreements



Other Setup for Agreements

Other setup elements elements are required to process agreements more efficiently. These include agreement types and rate sheets.

FOR MORE INFORMATION: For information about other setup in Service Management, see the lesson “Recurring Setup.”

Agreement TypesAgreement types define some default processing settings for an agreement. You must set up at least one agreement type to process agreements.

Menu Path—Setup > Agreement Types

The agreement type has the following information:

Category—Select either Expiring or Non-expiring.

Default Term—The term of the agreement can be changed when you create a new agreement. This is the default length in months. The term does not apply for non-expiring agreements.

Default Service Department type—This defines the default department type on the work orders for this agreement. This list is created in settings under Custom Fields.

Default Work Type—The list shown includes work types with a Type of Preventive Maintenance.




Rate SheetsRate sheets are used to determine the amounts at which you bill work performed. The rate sheet has information about the rate to bill for labor, the rate tables to apply to the parts and miscellaneous items, and the cost basis for parts.

Before you create a rate sheet, you set up the rate tables associated with the rate sheets. A rate table has information about the discount or markup rates applied when you bill the work.

FOR MORE INFORMATION: For more information about rate sheets and rate tables, see the lesson “Recurring Setup.”

Service Management Create a New Agreement



Create a New Agreement

Agreements let you track a contract with a customer for one or more service locations. The agreement includes information about service work to be performed and how it is billed. Much of the setup in agreements is used to generate the preventive maintenance work orders associated with the agreements, as well as billing information used to generate invoices.

When you create an agreement, enter a Name and select a Customer. The PM Agreement number is assigned when the agreement is saved. The header area of the new agreement shows Revision Type of Original and an Approval Status of Quote. The revision and status will change as you work with the agreement.

Once you select the agreement type on the Details tab, a Category of Non-expiring shows the effective date onward and Expiring agreements show a date range in the header area. The Category of Expiring or Non-expiring is set up on the agreement type. The category affects the way you can schedule billings.

You must save the agreement before you can add services. At least one service is required to approve a quote. All agreements begin as a quote to be proposed to the customer. Once you approve the quote, the agreement becomes active and you can generate work orders and invoices.

The agreement number assigned when you save the agreement the first time is retained through the agreement life cycle. The revision number begins as 0 and continues to increment for each amendment or renewal.

Expiring Non-expiring




The following table shows possible revision types and statuses.

FOR HELP: See the Help Topic “Agreement version” for more information about the states and statuses for agreements.

The agreement window has several tabs containing information about your agreements. The three main tabs are the Details, Services, and Pricing/Billing tabs. The Work Orders and Invoices tabs show information after the agreement work orders and invoices have been generated. The Notes and Attachments tabs follow the standard use.

Details TabMenu Path—Tasks > Agreement > Agreement

The Agreement type and Effective date are required. The type may affect how you can schedule billings on this agreement.

Revision Types Status

Original Quote

Amendment Canceled Quote

Renewal Approved

Terminated PM Agreement

Service Management Create a New Agreement



The Related Agreement area shows the history of the agreement, including the original agreement and other history. A list appears when an agreement expires and a renewal offer is generated, or when you amend the agreement.

Services TabThe Services tab shows the services that have been set up for the agreement. Services include work to be performed and the location of the work.

When you create an agreement, no services are set up initially.

At least one service is required on an agreement.

You must save the agreement before you can add the first service.




Create New Service

Click Add to create each new service. The service can include details about the work to be performed, equipment on which to perform the work, tasks associated with the work, and a schedule for the work.

In the header area of the service window, enter the Service name and select the Service Site where this service should be performed. Then enter the information on several sub-tabs of information.

Details Sub-Tab on Service

The Details sub-tab includes information that is used when the work orders are generated for the service.

Enter or accept the Work type. This automatically fills in from the agreement type setup.

Select the Service Center. This is used in the retrieval of the tax group and status.

Select the Department. If the selected center has only one department that matches the Department type on the agreement type setup, it automatically fills in from the center. If more than one match is found or no departments are set up, you must enter a department.

In the lower grid, select the equipment covered by this agreement for this service. Click Add to create new location equipment.

Header Area

Service Management Create New Service



FOR HELP: See the Help topic “Setting up Service Management > Other setup items > Setting up agreement types > Agreement Type window > General tab (Agreement Type window)” for more information.

Tasks Sub-Tab on Service

On the Tasks tab, enter the tasks to be performed. Information entered on this grid is automatically entered into the work order when it is generated. You can define tasks which do not apply to any equipment if you select None under the Equipment Item area on the Details sub-tab.

Click Add Task and select Task or Standard Task. Select Task to create a new task with Parts, Labor, Miscellaneous, or To Do lines. Select Standard Task to use an existing task.

Click Add Line, to create individual line items for Parts, Labor, Miscellaneous, or To Do.




Schedule Sub-Tab on Service

Three areas appear in this window: Service due (1), Options (2), and Trip (3).

Service due (1)

Select the frequency, and then specify the schedule details. (The scheduling items change based on the selection for frequency.)

Options (2)

In the Options area, the available fields change based on your scheduling selections. Indicate the following:

Work Order creation method—When you select Generate automatically, the work orders are created when you run Tasks > Agreement > Generate PM Work Orders. When you select Review and create individually, the work orders are created from the workspace associated with preventive maintenance.

If you choose auto-generate, you can still create a work order in the same way you do for creating individually.

Create one work order per—When you schedule multiple services due within a certain time frame and your creation method is auto-generate, you can determine how many work orders will be generated.

For example, if you are going on site weekly to perform a certain service, but only want one work order for the entire month with a trip for each scheduled service, you can select Month.

1 2

3




Scheduling method—Indicate whether this trip should be schedule for a technician and time.

Trip (3)

You must define at least one trip for this agreement. For each trip scheduled on the service, a trip is created on the work order when it is generated. All defined trips are created for each instance of the service schedule.

The columns that display change based on the Scheduling method selected. The Duration is required in all instances. When you select a method of Scheduled or Scheduled and committed, the Start time is required. When you select a method of Not scheduled, the Start time is not available.

NOTE: A trip can only be assigned to one technician. If more than one technician is required for service work, create a trip for each technician.

FOR HELP: See the Help topic “Managing agreements > Agreement window > Agreement Service window > Schedule tab (Agreement Service window)” for more information about different scenarios for services.

Method Description

Not scheduled

When you select this option, the time cannot be entered and the technician is optional. The work order is created and displays in the Unscheduled list on the dispatch board for the technician.When a range of dates available dates is selected in the Service due area, this is set to Not scheduled and disabled.

Scheduled When you select this option, you must enter a scheduled time for the service work trip. The technician is optional. The work order is created and displays on the dispatch board for the time and technician, or in the Unassigned list if a technician is not selected.

Scheduled and Committed

This option is the same as Scheduled, except that the Committed check box is automatically selected when the work order is created to commit to the time/date selected.




Pricing/Billing Tab

You have several options for pricing and billing the agreement. You can select a Pricing level which bills for the entire agreement or for each service separately. Based on your Pricing level, you select a Pricing method for the entire agreement or for each service identified on the Services tab.

The three Pricing methods are described below:

The Invoice controls area remains consistent from one pricing method to another.

Enter or accept the Bill to customer for whom the invoice will be generated.

Select the Format to use for the invoice.

Select or accept the Grouping.

Pricing Method Explanation

Time and materials - Time of service

Select a Rate sheet for billing. The billing is created when service work is performed. The work order is covered by this agreement.

Fixed price - Time of service Enter the prices to bill for parts, labor, and misc. The Total price is billed when service work is performed. The work order is covered by this agreement.

Fixed price - Periodic Enter the prices to bill for parts, labor, and misc. Then, identify a billing schedule for the invoices. The work order is covered by this agreement and the invoices are generated on a periodic basis.




When the Pricing method is Fixed price - Periodic, another area for Accounting information appears next to the Invoice controls. In this area, you can change the defaults for data that is used for accounting entries.

Agreement Pricing/Billing ScenariosThe following scenarios describe different agreement situations and ways the billing can be set up. Six main scenarios use a non-expiring agreement type. Other scenarios follow which describe one main difference for expiring agreement types.

Scenario 1

When service work is associated with this agreement, you bill the customer based on work performed at a specified rate. For example, you may choose to provide a 15% discount on parts and a reduced labor rate when the work is performed, and bill when the service work is covered in the agreement.

Set up the agreement with a Pricing method of Time and materials - Time of service. Select the Rate sheet to default on the work order.




Scenario 2

When service work associated with this agreement is performed, you bill the customer a fixed amount. For example, you may schedule a duct cleaning service for a service location twice a year. Each time you perform the service work, you charge the customer a flat $300.00, for which $75 is parts, $200 is labor, and $25 is miscellaneous. You bill after the work is completed.

The Pricing method is set to Fixed price - Time of service. Enter the fixed amounts for parts, labor, and miscellaneous for a Total price to bill each time the work is performed and a work order is generated.

Scenario 3

Based on the agreement, you provide a certain number of visits to the customer location to perform work. The agreement is billed periodically and all services defined in the agreement are covered by periodic billings.

For example, your agreement states that you provide service checks and filter changes as needed for a customer at three different locations once a month for a year. You want to bill the customer for all three locations once a month for the




length of the agreement. Your price per month for these visits averages about $30 in parts, $150 in labor, and $25 miscellaneous.

With periodic billings, you set the billing frequency. Click Change billing schedule to specify the frequency and timing for the billings.

NOTE: The average prices per billing must be multiplied by the length of the agreement to get the Total price.




Scenario 4

This scenario is similar to “Scenario 1,” on page 17, with the exception of a secondary service provided at a different rate. When the first service work associated with this agreement is performed, you bill the customer at a 15% discount on parts and a reduced labor rate.

A secondary service is covered by this agreement and you bill the customer when the work is performed at a 5% discount on parts.

In this scenario, on the Services tab you set up two services. On the Pricing/Billing tab, the Pricing level is set to Services are priced individually. Select each service in the list on the left to define how each is handled. In this case, they are both Time and materials - Time of service, but each is assigned a different rate sheet.

Service 1—15% Discount

Service 2—5% Discount




Scenario 5

This scenario is similar to “Scenario 2,” on page 18, but in this case, multiple services are defined and each has its own fixed billable amounts.

For example, you may schedule a twice-yearly duct cleaning service for a service location. Each time you perform the work, you charge the customer a flat $300.00, made up of $75 for parts, $200 for labor, and $25 miscellaneous. In addition, you may schedule a filter change quarterly, and you charge the customer a flat $100, made up of $20 for parts, $65 for labor, and $15 miscellaneous. You bill for each when the work is completed.

In this scenario, on the Services tab you set up two services. On the Pricing/Billing tab, the Pricing level is set to Services are priced individually. Select each service in the list on the left to define how each is handled. In this case, they are both Time and materials - Fixed price, but each is assigned different values for parts, labor, and miscellaneous.

Service 1

Service 2




If equipment is included in on the service, you can assign the billing amounts by equipment. To assign the amounts, click Break out prices by equipment items.

Scenario 6

This scenario is similar to “Scenario 3,” on page 18. Based on the agreement, you provide a certain number of visits to the customer location to perform work. One service is duct cleaning and the other is a full maintenance routine. The agreement should be billed periodically for each service. For duct cleaning, performed twice a year, bill the customer quarterly. For the full maintenance routine, performed quarterly, bill the customer monthly.

The duct cleaning services are performed in April and October, so you bill for these in February, May, August, and November. Billings should be $300 each, with $75 parts, $200 labor, and $25 miscellaneous.

The full maintenance services occur early in the months of January, April, July, and October. The total for 12 months is $1320, with $360 parts, $840 labor, $120 miscellaneous. This is a non-expiring agreement.




In this example, any service work performed on that site visit beyond the scope of the agreement is considered add-on work.




NOTE: In a non-expiring agreement, the prices you enter should be for individual billings that are created. When you set the schedule to bill for 12 months, the Total price is not split across those periods.

Other ScenariosThe illustrations above show agreement types that do not expire. If you select expiring agreement types, the windows may have different options. You cannot set the billing schedule time frames and amounts with a non-expiring agreement. You can only specify the ongoing schedule of billings.




With an expiring agreement, you can set the billings for specific dates and amounts. On the Pricing/Billing tab, enter the Pricing method and the amounts. Then in the Scheduled billings area, click Calculate.

Select the cycle for billings.Select the frequency by choosing a day/week/month and checking the boxes. The options available in the middle area depend on the frequency.Verify the start and end dates.Verify the amounts for total billings.




For example, you can bill a customer for 50 percent of the agreement in the first billing and split the remainder over the next six months.

NOTE: If you click Calculate again after a schedule has already been defined, you see a message at the top of the Calculate Scheduled Billings window that says “This tool will calculate the billing dates based on a schedule, and prorate the billing amounts to those dates. Any existing scheduled billings will be replaced.” Click Cancel to exit without saving any new scheduled billings. Click OK to recalculate and override the existing schedule of billings.

Work Orders TabOn the Work Orders tab, you can view any work orders generated or associated with this agreement. From within this screen, you can also edit work orders.

FOR MORE INFORMATION: For more information about working with work orders, see the lesson “Entering Work Orders.”

InvoicesOn the Invoices tab, you can view any invoices created for this agreement. This includes regularly scheduled invoices as well as adjustment invoices. Billing agreements are discussed page 40. Adjustment invoices are discussed on page 44. From within this screen, you can also edit and void invoices.

FOR MORE INFORMATION: For more information about working with invoices, see the lesson “Billing Work Orders.”

Notes and AttachmentsYou can use the Notes and Attachments tabs for other details you want to track about the agreement.

Refer to the “Concepts and Tools” lesson on how to use notes and attachments in Sage Timberline Enterprise.

Service Management Approve Agreement Quote



Approve Agreement Quote

After you enter the information on the agreement, you can send the quote to the customer for approval. Use the Fax or E-Mail buttons to send the quote to the customer for approval.

To approve a quote in the system after the customer signs off, open the agreement. Verify the information is correct before you approve—because once an agreement quote is approved, most of the settings cannot be changed. Click Approve quote in the toolbar at the top of the window.

A message alerts you of the approval and effective date for the agreement.

If the agreement is set up to generate work orders automatically, the system generates work orders up to the previously generated date when you approve the agreement.

If a customer does not approve a quote but instead requests changes, you can modify it and send for approval again. If you do not acquire the business for the agreement and want to cancel it, click Cancel quote. The Approval status for the agreement becomes Canceled quote.

If a data entry error causes the quote to be incorrect and it cannot be changed, you can cancel the quote. For example, after you save the agreement certain fields, like Customer, cannot be modified. If an incorrect customer was entered, you must cancel the quote and begin again. You can re-open a quote if necessary. Click the Re-open quote button on the toolbar, located in place of Approve quote.

When you approve a quote, the Approval status changes from Quote to Approved. Additional workflow options become available on the toolbar at the top of the window.




Generate PM Work Orders

Once the agreement is approved, you can initiate tasks related to the agreement. One task is to generate the preventive maintenance work orders for the agreement. The work orders generated are based on the services set up, the schedules associated with those services, and the trips designated on the agreement.

You assign the Work Order creation method on each service schedule. The number of work orders and scopes on each work order depend on the schedule, the setting for how many work orders to create, and the number of trips.

Menu Path—Agreement > Service > Schedule

Options: Generate AutomaticallySelect Generate automatically when the dates and times of the trips are more specific. In this setup, you identify the days of the week or months when the work should be performed. For example, you do landscaping and mow the lawn at a corporate park every Monday at 8:00 in the morning.

Select Tasks > Agreements > Generate PM work orders to generate work orders for service schedules with this option. The Generate PM Work Orders process can be run as often as you need.

The first time you generate work orders, enter the through date in the date box.

Subsequently, you see the current generated through date. Enter the next date through which to generate orders.

Service Management Generate PM Work Orders



Options: Review and Create IndividuallySelect Review and create individually when the date and time are somewhat flexible. For example, you perform duct cleaning for a customer and it should occur within the first two weeks every six months.

Generate work orders for service schedules using any of these options:

From the Services tab, right-click the service and select Create Next PM Work Order.

Open the service and click Create Next PM Work Order.

The workspace called PM Work Order Due shows a list of services due for work orders. Right-click the service and select Generate Next PM Work Order, or click the button at the top of the workspace.

The Create Next PM Work Order window opens. In the upper area of the window, you see information about the service. To view other work orders related to this service, click See service history.

In the lower area of the window, enter information about the current work order to generate. Enter the Schedule date for the work. Verify the trip information is complete. Then, click Create Work Order. The work order should now display on the dispatch board.




Skip Service Work

If you need to skip a scheduled service, when you create the next work order, click Skip service. As an example, the service is scheduled to occur every other day and a holiday prevents the work from being performed on a scheduled date. You decide to skip the scheduled service and move forward to the next available service. The system creates a work order with a Status of Canceled. The next date fills in the Schedule date the next time you create a work order.

Create One Work Order PerCreate One Work Order Per is a setting that affects the quantity of work orders generated. If the Service due is set to Daily, Weekly, or Monthly, you can specify how many work orders should be created for each frequency.

For example, if you select Daily, you can select the Create One Work Order Per as Day, Week, or Month. If you select Weekly, you can select the Create One Work Order Per as Week or Month.

Assume a schedule effective on 1/1/2010 set to Weekly and select every Monday. When you have the option Create One Work Order Per as Month, you see the following scopes on the work order create for the month of January:

NOTE: This setting is unavailable when you select a Work Order creation method of Review and create individually.

Service Management Generate PM Work Orders



TripsThe number of trips assigned to the service also affects the work order you generate. When you schedule multiple trips on the agreement service, the work order will also have multiple trips. As an example, you can have one service with three technicians scheduled to perform the work.




Prepare Agreement Billings

Agreement billings can be processed in different ways. The pricing and billing information entered on the agreement are the three main options. Two of these generate the billing invoice from the work order at the time the service work is performed. These are based on a rate sheet or a fixed price billing amount. The third billing option automatically generates invoices based on a schedule.

In addition to these billing options, you can also create an adjustment billing for an agreement.

Billing Time of Service Agreements

For agreements that are billed at the time of service, or have services billed at the time of service, the work order is generated through the methods described in “Generate PM Work Orders,” on page 35. The work is performed by the technicians and the paperwork is turned into the office.

Enter the information about the work completed as you would any work order. Under Scope > Task items, you’ll see a few differences between PM agreement work orders and normal work orders:

The Source on the work order is PM Agreement. This displays on the right side of the header area on the work order. When a work order is not related to an agreement, the Source is Manual.

An additional tab displays for Agreement Service Summary.

FOR MORE INFORMATION: For more information about work orders, see the lesson “Enter Work Orders.”

After you enter the information and save the work order, create the invoice in one of these ways.

Use Quick Invoice to create an invoice directly from the work order.

Generate the invoice through Tasks > Work Order > Work Order Billing.

FOR MORE INFORMATION: For more information about creating invoices for work orders, see the lesson “Billing Work Orders.”

Service Management Prepare Agreement Billings



Billing Periodic Agreements

For agreements that are billed on a periodic basis or have services billed on a periodic basis, you have two options to generate the invoices. In both options, you specify when to create the invoices.

Settings on the agreement affect how the invoices are generated. The Scheduled billings area on the Pricing/Billing tab defines how many billings will be due. This is only available for periodic billings. The area differs for expiring and non-expiring agreement types.

Non-Expiring Billing Schedule

Expiring Billing Schedule




In the Invoice controls, you select defaults for the Bill to (the customer to receive the invoice). Then select the invoice format to use when the invoice is printed. The Grouping is used when you select multiple services to bill in the workspace.

The options for the Grouping are based on the Pricing level and Pricing method:

From the Agreement

One option to bill the agreement is to create the scheduled invoices from the agreement. With the agreement open, click the Scheduled invoice button in the toolbar at the top of the window.

The Display billings through automatically fills in with a date two months later than the system date. A list of scheduled billings displays for the time frame. Check

Time of Service Periodic

Work Order Service agreement

Service Site Agreement

Customer Customer




the boxes to select billings to include in the invoice process. Click OK when you are ready to invoice.

Click Edit to modify something on the invoice generated.

Click Post to create the invoices and send them to Accounts Receivable.




From the Workspace

A second option to bill the agreement is to select invoices ready to bill from the workspace. Open the workspace called Agreements Ready for Billing. Select Next Scheduled Billing from the menu at the top of the window or right-click the item in the list and select the option.

You see the same windows as when it is done from the agreement shown before.

Adjustment InvoicesThere may be instances when you need to create an invoice for an agreement that does not follow the normal schedule of billings. After an agreement is approved, the only way to change the billing schedule is to amend the agreement. You might need to create an adjustment invoice in these situations:

A decision is made to skip a scheduled service for an agreement billed periodically. Use the adjustment invoice feature to credit the customer for all or part of the next periodic billing.

An agreement is terminated before the expiration date and the contract called for an early termination fee. Use the adjustment invoice feature to create an invoice for the early termination fee.

The adjustment invoice you create inherits the accounting and invoice settings defined in the agreement. You can edit these details and enter the amount for the invoice. The billing amount is entered as a lump sum. You cannot have multiple lines on the invoice.




Open the agreement and click Adjustment invoice in the toolbar at the top of the window.

On the adjust invoicing window, enter the information about the adjustment.

Enter the Net amount for Parts, Labor, and Miscellaneous.

Enter amounts as positive for additional billing and negative for credit billing.

Enter tax information and select the revenue accounts for each category.

Click OK to verify the invoice information and click Post to create the invoice for Accounts Receivable. Click Edit to review the information again.




The invoice information is found on the Invoices tab of the agreement.

Service Management Managing Agreements



Managing Agreements

Managing agreements includes processes like amendment, renewal, expiration, and termination. The full cycle of the agreement typically includes these processes. If the agreement is expiring, the service work and billings continue until the agreement expires. If a customer has been happy with the work and chooses to continue the services your company provides, the agreement can be renewed. If a customer ceases to do business with you, the agreement can be terminated before the expiration date.

For ongoing (non-expiring) agreements, the service work and billings continue until the agreement is terminated. If you need to modify the pricing on this type of agreement, you can use the amendment process.

The last option is that the customer chooses not to renew the agreement and you allow it to expire. The following table shows the typical status flow for each type of agreement:

NOTE: The agreement number assigned when the original quote is approved remains the same for the life of the agreement.

Amend AgreementsAny time you need to make a change to an agreement that includes what is covered or the pricing for the agreement, use the amendment process. For example, a customer adds a new piece of equipment to be covered by an existing agreement—or a new service location is added to the service schedule and the price is going to change.

When you amend an agreement, the initial status is a quote. Once it is approved, the original agreement is terminated and the amended agreement takes it place.

Expiring Agreements Non-Expiring Agreements

Rev. Type Rev. No.Approval

Status Rev. Type Rev. No.Approval

Status

Original 0 Quote Original 0 Quote

Original 0 Approved Original 1 Approved

Amendment 1 Quote Amendment 1 Quote

Amendment 1 Approved Amendment 1 Approved

Original 0 Terminated Original 0 Terminated

Renewal 2 Quote

Renewal 2 Approved




Let’s imagine tha the original agreement is an expiring agreement with a term of 12 months. It covers maintenance on an air conditioning unit at one service location. After the second month in the term, the customer proposes that you perform the same service work for a second location for them. This doubles the billing amounts on the agreement, and requires you to add the new service location.

Open the agreement and click Amend Agreement. This creates a new agreement related to the original. The Revision type, Revision number, and Approval status are important factors relating agreements and amendments. The Revision type is Amendment for this process. The Approval status is Quote until it is approved.

Enter the amendment agreement like any other agreement. Information automatically fills in from the original agreement. On the Details tab, in the Term area, enter the Effective date for changes on the amendment.

In the Related Agreement area, the original agreement appears. Click the Edit button to view the related agreement currently selected.

Service Management Managing Agreements



On the Services tab, add any new services this agreement will cover. In this case, it would include the same type of service as the original agreement, but for a different location.

On the Pricing/Billing tab, enter the new billing amounts and create the new schedule.

After you enter the amended information, send it out for approval to the customer. When the approval comes back, approve the quote. At that time, the original agreement is terminated one day prior to the effective date of the amendment. Until the actual termination date, you can continue to work with the original agreement. The system cancels work orders already scheduled after the termination date.

The amendment becomes the active agreement.

Renew AgreementsAgreements that have expiring agreement types come up for renewal at the end of the term specified on the agreement. You can view agreements that are about to expire on the Agreement Ready For Renewal workspace. Agreements that are due for renewal within one month of the current date display on the workspace.

The process to renew the agreement is similar to amending an agreement. There are two ways to create the renewal:

From the agreement window, click the Renew Agreement button in the toolbar at the top of the window.

From the Agreement Ready For Renewal workspace, select the agreement and click the Renew Agreement button on the toolbar or right-click on the agreement and select Actions > Renew Agreement.

When you renew the agreement, the system creates a new agreement with a Revision type of Renewal and a status of Quote.




On the Details tab, enter or accept the information in the Term area for this renewal. You can enter or accept the Type, Term, and Effective date.

In the Related Agreement area, you can view and access the original agreement and any amendments related to this renewal.

On the Services tab, update the information about the services listed on the agreement. The list automatically fills in based on the agreement for which the renewal is being generated.

On the Pricing/Billing tab, update the information about for pricing and invoice controls. For periodic billings, the billing schedule will be cleared to calculate for the next term.

When the renewal offer is approved by the customer, approve the quote. Click the Approve Quote button in the toolbar at the top of the window. If the offer is refused, click the Cancel Quote button. The original agreement will continue through the end of the term at which time it will automatically expire.

Terminate AgreementsIf at any time during the term, an agreement is discontinued, whether by the customer or the company, you must manually terminate that agreement. To terminate the agreement, open the agreement and click Terminate Agreement in the toolbar at the top of the window. You can also right-click an agreement in a workspace view and select Actions > Terminate Agreement.

When the agreement is terminated, you see the Revision type as the last available type, which could be Original, Amendment, or Renewal. The Approval status now displays Terminated Agreement.

Other processes, like amendments and renewals, will automatically generate a terminated status on an agreement.

Service Management What If ...



What If ...

Following are some agreement scenarios that you might encounter, with information about how to handle them.

You Need to Skip a Service on an Agreement that Automatically Generates Work Orders

You Need to Ensure the Agreements are Billed to the Appropriate Person

Scenario You need to skip a service on an agreement that is set to automatically generate the PM service work orders. What’s the best practice for handling this?

Solution You can handle this in a couple of ways. The first is to open the agreement and click Generate Next PM Work Order. When the window opens for you to create the work order, click the Skip service button.

Alternately, you can use Tasks > Agreement > Generate PM Work Orders and cancel the agreement that is created for the location.

In either case, you may want to also create an adjustment invoice for the value of the skipped work.

Scenario You have multiple services for the same agreement and multiple agreements for the same customer. How can you generate an invoice for Accounts Receivable that includes all possible services for all agreements into one billing?

Solution When you set up the service site, select a Default invoice grouping level on the Defaults tab of Customer.

The billing must done in the Agreements ready for billing workspace. All services ready for their next billing display in the workspace. To multi-select services to bill, hold the CTRL key while you select the services to bill. Any services billed for the same customer with this setting are combined in the invoices window.

This setting is the default. It can be changed before the invoices are created.




You Need to Use Amortization to Recognize Revenue Correctly

Scenario You have an agreement for which work is done on a monthly basis. The customer has asked to be billed up front for the entire year. You want to meet your customer’s needs, so you’ll create an invoice the first month of the term. However, you need to recognize the revenue monthly throughout the life of the term. How can you do this?

Solution Let’s imagine that an agreement expires Jan. 1, 2010. The monthly service work is set up for one location. The billing schedule is once up front on Jan. 1, 2010. You need to recognize revenue monthly.

On the work schedule, select the service schedule for each month.

On the billing schedule, select Fixed price - Periodic. Enter the parts, labor, and miscellaneous amounts. In the Scheduled billings grid in the first line, enter the full amount of the single invoice to create with the date of the invoice.

Service Management What If ...



In the Amortized column, click the button to display the amortization window.

To manually create an amortization schedule, enter the dates and amounts here.

To schedule equally distributed amortization amounts, click Calculate. On the Calculate Amortization Schedule window, select the frequency and period.

Click OK to accept the schedule. The amounts are automatically entered into the Amortization schedule grid.

You can change the amortization schedule until the quote is approved. To access the schedule, click the button in the Amortized column.




Additional Learning OpportunitiesYou can learn more about workflows related to agreement processing in the following lessons.

Lesson

Enter Work Orders

Using the Dispatch Board

Billing Work Orders

Service Management Review What You Learned



Review What You Learned

1. What is the difference between an expiring and non-expiring agreement? What feature is available with expiring agreement?

2. When you create a new agreement, what is the Revision type and Approval status?

3. When you initially set up an agreement, what are the required elements before you can approve it?

4. At least one equipment selection is required on the Services tab.

❑ TRUE ❑ FALSE

5. When you set up the service, if you do not schedule the service and assign a technician to the trip, when you generate PM work orders where does the work order show up on the dispatch board?

6. What are the two primary Pricing Methods you can use for an agreement?

7. On a service, what are the two ways to have a work order created?

8. How are billings for agreements created?




9. What are the two sources for work orders?

10. What is a purpose of creating an adjustment invoice?

11. Why would you need to amend an agreement?

12. Would you need to renew an agreement that’s non-expiring?

❑ Yes ❑ No




Review What You Learned (Answers to page 60)1. What is the difference between an expiring and non-expiring agreement? What

feature is available with expiring agreement?

2. When you create a new agreement, what is the Revision type and Approval status?

3. When you initially set up an agreement, what are the required elements before you can approve it?

Required elements on a new agreement include:

Overall: Customer selection

Details: Agreement type, term, and effective date.

Service: Name and location for the service and at least one service with a trip must be defined.

Pricing/Billing: Depends on the pricing level and method. Time of service requires a rate sheet; periodic requires a billing schedule selection.

4. At least one equipment selection is required on the Services tab.

❑ TRUE ✔ FALSE

5. When you set up the service, if you do not schedule the service and assign a technician to the trip, when you generate PM work orders where does the work order show up on the dispatch board?

In the unscheduled work for the technician.

6. What are the two primary Pricing Methods you can use for an agreement?

Time of Service or Periodic

7. On a service, what are the two ways to have a work order created?

Two options to create work orders are to generate PM work orders automatically which is done through Tasks > Agreement > Generate PM Work Orders and create and review individually which is done from the agreement or the PM Work Order Due workspace.

8. How are billings for agreements created?

It depends on the pricing method selected on a work order, how the billing to generate the invoice for Accounts Receivable done. For Time of Service pricing methods, both Time and Materials and Fixed Price, after the work




performed, the order is updated, and the invoice is created from the work order or through the work order billing task.

For Fixed Price - Periodic pricing method, the invoice is generated from the agreement or the Agreement Ready for Billing workspace.

9. What are the two sources for work orders?

The two sources for work orders are PM Agreement and Manual.

10. What is a purpose of creating an adjustment invoice?

The adjustment invoice can be used if you skip a scheduled service, decide to credit the customer for something, or if an agreement is terminated before its term is due and you charge an early termination fee.

11. Why would you need to amend an agreement?

An amendment is required when you need to change the pricing or billing on an agreement. It would also be required if you need to add a new service to an agreement.

12. Would you need to renew an agreement that’s non-expiring?

❑ Yes ✔ No

























Once the quote is approved, the Amortizedcolumn displays Yes with no button.

Documents

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