na2009 enus sm_09

Chapter 9: Working on Service Contracts

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CHAPTER 9: WORKING ON SERVICE CONTRACTS

Objectives

The objectives are:

Update the contract.

Perform periodic activities.

View the service contract history.

Introduction

This chapter describes how to use service contracts.

At any time, to save a copy of a service contract quote or service contract, it

needs to be filed, which also applies when submitting a new contract quote to a

customer. View any further changes made to the contract quote in the filed

copies.

Also, certain changes can be made to an existing service contract, including:

Adding or removing contract lines.

Updating prices.

Changing the annual amount of the contract.

Assigning the contract to another customer.

Canceling the whole contract and so on.


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Updating Contracts

After signing a service contract or converting a contract quote to a service

contract (which also guarantees the contract is created and signed), use it in work

and keep it updated. The common transactions for managing signed service

contracts are:

Changing the owner of a service contract.

Adding a contract line to a service contract.

Copying contract lines to a service contract.

Updating the annual amount of a service contract.

Invoicing a service contract directly.

Removing a contract line from a service contract.

Canceling a service contract.

Creating a credit memo for a service contract.

Changing the Owner of Service Contracts

It may be necessary to change the owner of a service contract, for example, when

another company takes over the business of the company which owns the service

contract. When the owner of a contract changes, the program changes the owner

of all service items in the contract accordingly.

If a service item is in the service contract with an owner that needs to be

changed, and the service item is registered in multiple contracts belonging to the

same customer, the program changes the owner for all the contracts that include

this service item, and for all other service items included in these contracts.

To change the owner of the service contract, follow this procedure:

1. Click Home > Service Contracts.

2. In the Service Contracts list place, select the line for the service

contract of the owner that needs to change and double-click to open

the Service Contract window.

3. In the Action Pane, click Actions > Functions > Change

Customer. The Change Customer in Contract window appears.


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FIGURE 9.1 THE CHANGE CUSTOMER IN CONTRACT WINDOW

4. In the New Customer No. field, click the AssistButton to open the

Customer List window. Select the new owner of the service contract

from the list and click OK to copy its number in the New Customer

No. field.

5. In the New Ship-to Code field, click the AssistButton to open the

Ship-to Address List window that contains the new owner’s ship-to

addresses. Select the proper address and click OK to copy its code in

the New Ship-to Code field.

6. In the Change Customer in Contract window, click OK to change

the customer of the service contract. A message appears warning

about the consequences of the action to be performed.

FIGURE 9.2 A WARNING MESSAGE BEFORE CHANGING THE CUSTOMER

7. Click Yes to confirm.

8. Another message appears asking if you are absolutely sure the

customer should be changed. It also informs about the number of

service contracts or service quotes and service items going to be

affected by the change. Only the ownership of the service items

changes, and any existing service orders or service invoices are not

updated with the new customer information.


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FIGURE 9.3 REASSURING CHANGING THE CUSTOMER

9. If it is certain to change the owner of the contracts, click Yes.

10. In the Action Pane of the Service Contract window, click Lock to

lock the contract to prevent modifications and to apply the

changes to it.

The program assigns the new owner to all service item-related contracts and all

contract-related service items.

Adding a Contract Line to a Service Contract

When a customer purchases a new item and wants to include it in an existing

service contract, register the item as a service item first. After that, add the new

service item as a new contract line to any existing contract.

Also, if the service item added to a service contract is not purchased as an item

from the inventory, create a contract line specifying just the item or the text

description.

To add a contract line to a contract, follow this procedure:


2. In the Service Contracts list place, select the contract that is going

to have a contract line added to it, and double-click it to open the

Service Contract window.

3. In the Action Pane, click Actions > Functions > Open to open the

service contract for modifications.

4. In the Service Item No. field, click the AssistButton to open the

Service Item List window, containing the service items belonging to

the owner of the service contract.

5. Select the service item that is going to be added to the contract, and

click OK.

6. In the Item No. field, click the AssistButton, and then Advanced to

open the Item List window, containing all items in the inventory.

7. Select the item that is going to have a new contract line based on it,

and click OK.

8. To add a new contract line not related to any service items or items,

type its text description in the Description field.


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9. Update the contract line fields if needed. Specify the content of the

Line Value field if the contract line is created by specifying its text

description.

10. Lock the service contract to apply all the changes made by clicking

Actions > Functions > Lock in the Action Pane. The new

contract line is now a part of the contract.

NOTE: It is also possible to add service items to a service contract even if they

are already registered in other contracts. When at least one of these service items

is added to the Service Item No. field on a new contract line, a message appears,

informing that the service item already belongs to one or more service contracts.

Click Yes to confirm the message.

Copying Contract Lines to a Service Contract

Copy contract lines into a service contract from another service contract

belonging to the same owner, using the following procedure:


2. In the Service Contracts list place, select the contract to be updated

and double-click it to open the Service Contract window.


service contract for modifications.

4. In the Action Pane, click Actions > Functions > Copy

Document. The Copy Service Document window appears.

FIGURE 9.4 THE COPY SERVICE DOCUMENT WINDOW

5. In the Document Type field, click the AssistButton to select the type

of document to copy the contract lines from.

6. In the Document No. field, click the AssistButton to open the

Service Contract List window containing the documents belonging

to the owner of the service contract. The document numbers in the

list are filtered depending on the value in the Document Type field.


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7. Select the number of the document to copy the contract lines from,

and click OK to copy it to the field. The Customer No. and

Customer Name fields are filled in automatically with the customer

number and name from the document the information is copied from.

8. In the Copy Service Document window, click OK to copy the

contract lines to the document.

9. Lock the service contract to apply all the changes made by clicking

Actions > Functions > Lock in the Action Pane. The newly

copied contract lines are now a part of the contract.

NOTE: Use the Copy Document function only for the contracts with the same

owner, currency code, and ship-to code. However, contract lines from a

document with a different ship-to code can be copied by specifying this document

manually in the Document No. field. A contract line cannot be copied in the

service contract if it is already included in it.


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Periodic Activities

Usually when managing service contracts, it may be necessary to perform similar

activities with all of or just those contracts that satisfy some specific

requirements. For example, invoicing all prepaid service contracts at the

beginning of each month and then posting prepaid contract entries to G/L at the

end of the month.

Five batch jobs can be run periodically on service contracts in a company to:

Invoice contracts.

Create service orders for contracts.

Update contract prices.

Remove expired service items.

Post prepaid contract entries to income accounts.

None of these activities requires searching and opening the service contract

documents, therefore saving time and effort. This section provides examples of

the essential information of what each periodic activity is used for.

Invoicing Service Contracts

Service contracts are usually invoiced periodically, with prepaid contracts

invoiced at the beginning of their invoice periods, and non-prepaid contracts at

the end of their invoice periods.

The invoice period for each contract defines how often it is invoiced, and is

specified in the Invoice Period field on the Invoice Details FastTab in the


This field contains six options used to specify one of the following invoice

periods:

Month

Two Months

Quarter

Half Year

Year

None

To create service invoices for service contracts, and to print a test report for

service contracts, use the Create Contract Invoices batch job.

When the Create Contract Invoices batch job is run, the program automatically

creates service invoices and fills them in with the information from the

corresponding service contracts.


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Alternatively, use the Contract Invoicing – Test report to test which service

contracts are due for invoicing up to the date specified. The report shows the

following information:

Contract numbers.

Customer numbers.

Contract invoice periods and amounts.

Next invoice dates.

Numbers of the service invoices the program creates.

Demonstration: Invoice the Prepaid Service Contracts

In this demonstration, create three prepaid service contracts managed through all

further examples in the Periodic Activities section. Invoice these service

contracts using the Create Contract Invoices batch job and posting the service

invoices.

1. Set the work date to 4/25/2010.

2. Create three service contracts using template TEMPL0001 contract

and the following information:

Service Contract Owner Item Serial Number

1 21245278 80007 2334967

2 27090917 8916-W 8839921

3 44756404 80004 2214560

The invoice period for each of the three contracts is one month.

The service period for each contract line in these service contracts is

1 month.

The price update period for each of these service contracts is

1 month.

The expiration date for each of these service contracts is 11/15/2010.

3. Sign all three service contracts and make the program create service

invoices for them for the period left to the end of the current month.

4. Post the newly created invoices for each service contract directly.

5. Change the work date to 5/1/2010.

6. Click Departments > Service > Contract Management.

7. Under Periodic Activities, click Create Service Contract Invoices.

The Create Contract Invoices window appears.

8. On the Options FastTab, the program fills in the Posting Date field

with the work date. This date is used as the posting date for the

service invoices. Fill in the Invoice to Date with the date invoices

are created up to. Insert the work date in the Invoice to Date field.

9. In the Action field, specify what actions the Create Contract

Invoices batch job performs: either to create invoices or print a test

report. Select the Create Invoices option.


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10. On the Service Contract Header FastTab, set the following filters:

Contract Type: Contract

Prepaid: Yes

Starting Date: 4/25/2010

The Create Contract Invoices window now looks like this.

FIGURE 9.5 THE CREATE CONTRACT INVOICES WINDOW

11. Click OK to create service invoices. After the batch job is run, a

message appears indicating three service invoices are created.

12. To check if the service invoices are created successfully, view the

value in the No. of Unposted Invoices field on the Invoice Details

FastTab, in the Service Contract window.

The value in this field is equal to one for each of the three service

contracts.

The Invoice Details FastTab of the Service Contract window for

the first service contract looks like this.


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FIGURE 9.6 VERIFYING THE CREATION OF THE SERVICE INVOICES

13. Click the value in the No. of Unposted Invoices field to open the

Service Document Registers window.

14. In the Action Pane, click Card to open the Services Invoice window

containing the unposted service invoice created for the first service

contract.

FIGURE 9.7 VIEWING THE UNPOSTED SERVICE INVOICE

15. In the Action Pane of the Service Invoice window, click Post to post

the service invoice.


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16. Repeat steps 12 to 15 for the second and third service contracts.

Creating Service Orders from Contracts

When managing service contracts it may be necessary to create service orders

based on contracts that satisfy specific requirements. For example, to create

service orders for the maintenance of service items included in the service

contracts belonging to a specific customer or for them to start to be valid at a

specific date.

To create service orders for service contracts, or to print a test report for service

contracts, use the Create Contract Service Orders batch job.

When the Create Contract Service Orders batch job is run the program creates

service orders and fills them in with the information from the corresponding

service contracts.

Alternatively, use the Contr. Serv. Orders – Test report to test which service

contracts include service items due for service within the specified period. The

report shows the following information:

Numbers of contracts.

Numbers of customers.

Names of customers.

Service items.

Numbers of the service orders the program creates for the specified

period.

Demonstration: Create Service Orders for the Prepaid Service Contracts

In this demonstration, create service orders for the three prepaid service contracts

from the previous demonstration. Use the Create Contract Service Orders

batch job for this purpose.



3. Under Periodic Activities, click Create Service Contract Orders.

The Create Contract Service Orders window appears.

4. On the Options FastTab, specify the period to create contract service

orders for.

The program creates service orders for the contract lines with the

next planned service dates within the specified period in the service

contracts.

The service period of each contract line in the service contracts is 1

month and because this is the first time service orders are being

created for them, their next planned service dates are set

automatically to 4/25/2010.


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Enter the work date in the Starting Date field and 5/25/2010 in the

Ending Date field.

In the Action field, specify what actions the Create Contract

Service Orders batch job performs: either to create contract service

orders or print a test report. Select the Create Service Order option.



Prepaid: Yes


The Create Contract Service Orders window looks like this.

FIGURE 9.8 THE CREATE CONTRACT SERVICE ORDERS WINDOW

NOTE: There is a limit on the number of days used as the date range each time

this batch job is used. Set this limit in the Contract Serv. Ord. Max. Days field of

the Service Mgt. Setup window.

6. Click OK to create contract service orders.

Updating Contract Prices

When managing service contracts, it may be necessary to periodically update the

prices on them. Use the Update Contract Prices batch job to:


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Update prices on service contracts regularly.

Specify a price update percentage.

Print a test report for service contract that satisfy special conditions.

When the Update Contract Prices batch job is run, the program updates the

contract lines by applying the price update percentage specified to their line

values, line amounts, line discount percentages, and profits, and updates the

annual and calculated annual amounts of the service contracts.

Alternatively, use the Contract Price Update – Test report to test which service

contracts need price updates up to the date specified. The report shows the

following information:

Contract numbers.

Customer numbers.

Contract amounts.

Price update percentages.

Any errors that occurred while updating.

Demonstration: Update Prices of the Prepaid Service Contracts

In this demonstration use the same three service contracts as before. Update their

prices using the Update Contract Prices batch job.



3. Under Periodic Activities, click Update Service Contract Prices.

The Update Contract Prices window appears.

4. On the Options FastTab, the program fills in the Update to Date

field with the work date. It also updates the prices of the contracts

with the next price update dates on or before this date. The update

prices period of each of these contracts is one month, and since their

prices are being updated for the first time, their next price update

dates are automatically set to 5/25/2010.

5. Fill in the work date in the Update to Date field.

6. In the Price Update % field, enter “5” to specify to apply a five

percentage update of the service contracts prices.

7. In the Action field, specify what actions the Update Contract

Prices batch job performs: either to update the contract prices or

print a test report. Select the Update Contract Prices option.



Prepaid: Yes


The Update Contract Prices window looks like this.


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FIGURE 9.9 THE UPDATE CONTRACT PRICES WINDOW

9. Click OK to update contract prices. After the batch job is run, check

the annual amounts and contracts lines of the three service contracts.

Posting Prepaid Contract Entries

When working with prepaid service contracts, entries must be posted regularly,

thereby transferring the prepaid payments from the prepaid contract accounts to

the regular income accounts.

Every time a prepaid contract is invoiced, the program inserts service ledger

entries for each month of its invoice period.

When the invoice is posted, the program transfers the payment amounts to the

prepaid account. Then at the end of each month, prepaid contract ledger entry

amounts are posted to the income account.

Use the Post Prepaid Service Contract Entries batch job to:

Transfer prepaid service contract ledger entry amounts from prepaid

accounts to income accounts.

Print a test report for those service contracts that satisfy specific

requirements.


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Alternatively, use the Prepaid Contr. Entries – Test report to test the transfer of

prepaid service contract ledger entry amounts from prepaid accounts to income

accounts up to the date specified. The report shows the:

Contract numbers.

Service items.

Account numbers.

Posted amounts.

NOTE: Number series must be set up used to assign a document number to the

journal lines created for the transfer in the Service Mgt. Setup window.

Demonstration: Post Prepaid Service Contracts Entries

In this demonstration, use the same three service contracts created in the first

demonstration. Post prepaid entries to G/L using the Post Prepaid Contract

Entries batch job.



3. Under Periodic Activities, click Post Prepaid Service Contract

Entries. The Post Prepaid Contract Entries window appears.

4. On the Options FastTab, fill in the Post until Date field with the

date up to which to post prepaid entries. Only the service ledger

entries with posting dates not later than this date, and that meet other

specified conditions, are posted to G/L. Enter the work date in the

Post until Date field.

5. Fill in the Posting Date field with the date to use as the posting date

on the service ledger entries.

By default, the program sets this field to the work date. In this

demonstration, use the work date as the posting date.

In the Action field, specify what actions the Post Prepaid Contract

Entries batch job performs: either to post the prepaid entries or print

a test report. Choose the Post Prepaid Transactions option.

6. On the Service Ledger Entry FastTab, set the following filters:

Prepaid: Yes

Posting Date: 01/05/01

The Post Prepaid Contract Entries window looks like this.


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FIGURE 9.10 THE POST PREPAID CONTRACT ENTRIES WINDOW

7. Click OK to post the prepaid entries to G/L.

8. After the batch job runs, check the service ledger entries of each of

the three service contracts to verify the prepaid entries recently

posted to G/L have a check mark in the Moved from Prepaid Acc.

field.

The Moved from Prepaid Acc. field specifies whether the prepaid

entry moved from the prepaid to income accounts.

Removing Expired Contract Lines

If removing expired contract lines, when managing service contracts, it may be

necessary to remove them from service contracts.

Expired contract lines contain the service items no longer serviced under service

contracts, for example, the service items registered as broken down.

Use the Remove Contract Lines batch job to:

Remove expired contract lines from service contracts.

Print a test report for service contracts that satisfy specific

requirements.

When the Remove Contract Lines batch job is run, the program removes

contract lines with contract expiration dates up to the date specified. It also

creates credit memos where necessary.


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Alternatively, use the Expired Contract Lines – Test report to test which

service contract lines are expired, and must be removed, up to the date specified.

The report shows the following information:

Contract numbers.

Service items to be removed.

Contract expiration dates.

Line amounts.

Demonstration: Remove Expired Contract Lines from Prepaid Service Contracts

In this demonstration, use the same three service contracts created in the first

demonstration. Remove the expired contract lines using the Remove Lines from

Contract batch job.


2. Create and post service invoices for the service contracts.

3. Change the work date to 11/16/2010 the date the contract lines in the

three service contracts expire.


5. Under Periodic Activities, click Remove Service Contract Lines.

The Remove Lines from Contract window appears.

6. On the Options FastTab, fill in the Remove Lines to field with the

date up to which to remove contract lines. No service contract lines

with contract expiration dates later than this date are removed. Enter

the work date in the Remove Lines to field.

7. In the Reason Code field, specify the reason code for the removal of

lines from the contract. Click the AssistButton and select the NO

VALID reason code in the Reason Codes window that appears.


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FIGURE 9.11 SPECIFYING THE REASON CODE

8. Click OK to copy the NO VALID reason code in the Reason Code

field. The Reason Code Description field is filled in automatically

with the description of the reason code specified in the Reason Code

field.

9. Specify what actions the Remove Lines from Contract batch job

performs by selecting the values in the Action field: either to delete

the expired contract lines or print a test report. Select the Delete

Lines option.

10. On the Service Contract Line FastTab, set the following filters:

Contract Expiration Date: 11/15/2010 (the expiration date of each

contract line in the service contracts in this demonstration)

The Remove Lines from Contract window looks like this.


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FIGURE 9.12 THE REMOVE LINES FROM CONTRACT WINDOW

11. Click OK to remove the expired contract lines from the service

contracts.

Because the service contracts in this demonstration are prepaid and service

invoices for the current invoice periods are posted, create credit memos for them

manually in the Service Contract window. If there is a check mark in the

Automatic Credit Memos field on the Invoice Details FastTab for some service

contracts, the program automatically creates corresponding credit memos when

removing expired contract lines.

Viewing Contract Gain/Loss

To obtain an overview of gains and losses on service contracts, the program

automatically creates contract gain/loss entries when there is a change in the

annual amount on contracts, and either positive or negative entries.

For example, when:

Adding or removing contract lines from service contracts.

Updating service contract prices.

Canceling contracts.

Open any of the Contract Gain/Loss windows:


2. Under Contract Gain/Loss by, the following menu options are

available:


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o Contract Gain/Loss (Contract)

o Contract Gain/Loss (Groups)

o Contract Gain/Loss (Customers)

o Contract Gain/Loss (Reasons)

o Contract Gain/Loss (Resp.Ctr.)

The window that appears shows a summary of contract gain/loss entries, based

either on:

Service contracts

Service contract groups

Customers

Reason codes

Responsibility centers

The following is an example of the Contract Gain/Loss (Contracts) window.

FIGURE 9.13 THE CONTRACT GAIN/LOSS (CONTRACTS) WINDOW

In the Contract Gain/Loss (Contracts) window, you can set filters to determine

the information the program will display on the lines. You can set filters on the

following fields:

Period Start: Enter a period start date if you want the program only

to display gains or losses from that date onwards.

Contract No. Filter: Enter the service contract number of which you

want to view its gains or losses.

View by: Select a time interval.


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View as: Select the type of amount that will be displayed.

After you fill in the fields in the Contract Gain/Loss (Contracts) window, in

the Action Pane click Show Matrix to view the matrix.

FIGURE 9.14 THE CONTRACT GAIN/LOSS (CONTRACT) MATRIX WINDOW

The Contract Gain/Loss (Contracts) Matrix window has four columns:

Period Start - This column shows the date that the period over which

an overview of gains or losses are calculated starts.

Period Name - This column shows the name of the period. For

example, Monday, January, 1999.

Total Movement - This column shows the total change in the annual

amount on the service contract.

Contract Number - This column shows the contract number and the

value in the total movement column.

NOTE: If time interval Day is selected and there is a need to scroll over a longer

period, do it faster by shifting to a larger period such as Quarter. When the

desired period is found, shift back to the original period Day to view the data in

greater detail.

Also use the two reports in the Service Management application area to view and

print information about contract gains and losses.

The Contract Gain/Loss Entries Report

This report prints all service contract gain/loss entries, and shows the following

information:

Contract number

Reason code

Contract group code

Responsibility center

Customer number


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Ship-to code

Customer name

Type of change

Contract gain and loss

The Contr. Gain/Loss – Resp. Ctr. Report

This report prints all analysis of gains and losses on contracts attached to

different responsibility centers. The report shows the following information:

Responsibility center

Customer number

Ship-to code

Customer name

Contract group code

Contract number

Change status

Change date

Amount


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Lab 9.1 – Updating Contract Prices and Post Prepaid Entries

In this lab you will practice updating contract prices and posting prepaid entries.

Scenario

On November 21, 2010, customer 30000 asks you to register two service items

for item 80004. The two service items have serial numbers 98723 and 98724.

CRONUS International Ltd. updates service contract prices every month. Run an

update on the contract prices this month, informing the customer prices

increased.

Challenge Yourself

Create two new service items and a prepaid service contract with these items to

further update service prices for the contract and post prepaid entries.

Need a Litle Help?

1. Create a prepaid service contract using template TEMPL0001 with

the same customer, and include the service items just created.

2. Sign the service contract, and invoice it for the starting period

11/21/01 .. 11/30/2010.

3. The work date is 12/01/2010. Change the price update period of the

service contract created for this lab to one month, and its next price

update date to 12/01/2010.

4. Perform a three percent update of the contract prices in the service

contract.

5. Check the effect of the price update in the service contract.

6. Invoice the service contract directly for December.

7. Check the service invoice created, and post it.

8. The work date is 12/31/2010.View the service ledger entries of the

service contract.

9. Post the prepaid contract entries to G/L.

10. Check the service ledger entries of the contract to view the effect of

moving them from prepaid to income accounts.

Step by Step

Create service items.

1. Change the work day to 11/21/2010.

2. Click Home > Service Items.

3. In the Action Pane, click New.

4. On the General FastTab of the Service Item Card window, fill in

the following fields:

Item No.: 80004


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Click Yes to confirm assigning skill codes and service item group to

the service item.

Serial No.: “98723”

5. On the Customer FastTab, fill in the Customer No. field with

30000.

6. Click OK to save changes.

7. Repeat steps 2 to 5 to create the second service item but type

“98724” in the Serial No. field.

Create prepaid service contract.


2. In the Action Pane, click New.

3. On the General FastTab, with the cursor in the Contract No. field,

press ENTER.

4. Click Yes to the message that follows.

5. In the Service Contract Template List window, select the line with

TEMPL0001 and click OK.

6. Fill in the Customer No. field with 30000.

7. On the Lines FastTab, create two lines:

For the first line, click the AssistButton in the Service Item No. field

and select service item with serial number 98723.

For the second line, click the AssistButton in the Service Item No.

field and select service item with serial number 98724.

8. In the Action Pane, click Sign Contract.


10. Accept creation of the invoice for the period 11/21/10..11/30/10.

11. Click OK to the information message stating that the service invoice

is created.

12. On the Invoice Details FastTab, click the value in the No. of

Unposted Invoices field to open the Service Document Registers

window.

13. Click Card, and then post the created service invoice.

After signing the newly created service contract, the Service

Contract window looks like this.


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FIGURE 9.15 THE SERVICE CONTRACT WINDOW AFTER SIGNING

Update the contract prices.

1. Change the work day to 12/01/2010.

2. In the Action Pane of the Service Contract window, click Actions

> Functions > Open to open the contract for modifications.

3. Expand the Price Update FastTab.

4. In the Price Update Period field, enter “1M”.

5. In the Next Price Update Date field, change the value to 12/1/2010.

6. In the Action Pane, click Lock to apply changes and lock the

contract.

FIGURE 9.16 SETTING THE PRICE UPDATE PERIOD


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8. Under Periodic Activities, click Update Service Contract Prices.

The Update Contract Prices window appears.

9. On the Options FastTab, fill in the following fields:

Price Update %: “3”

Action: Update Contract Prices



Prepaid: Yes

Contract No.: The number of the contract you created.

FIGURE 9.17 UPDATING CONTRACT PRICES

11. Click OK.

12. Go back to the Service Contract window to view the changed

annual amounts and contract lines.


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FIGURE 9.18 VIEWING THE CHANGED ANNUAL AMOUNTS AFTER PRICE UPDATE

Invoice the service contract directly and post it.

1. In the Action Pane of the Service Contract window, click Create

Service Invoice.


3. Click OK to the message stating that the invoice is created.


Unposted Invoices field.

5. In the Service Document Registers window that opens, click Card.

The created service invoice looks like this.


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FIGURE 9.19 VIEWING THE CREATED SERVICE INVOICE

6. In the Action Pane of the Service Invoice window, click Post.

7. Accept the message that follows.

8. Close the Service Document Registers window.


> Refresh. Note that the No. of Unposted Invoices field is set to

0 and the No. of Posted Invoices field is filled in with 2.

Post the prepaid contract entries to G/L.


2. In the Action Pane of the Service Contract window, click Reated

Information > Contract > Service Ledger Entries. The Service

Ledger Entries window appears.

FIGURE 9.20 VIEWING SERVICE LEDGER ENTRIES

Service ledger entries of the Sale entry type are created each time the service

contract is invoiced.


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Since the service contract is invoiced twice, for the starting period and for

December, there are four service ledger entries of the Sale entry type (one service

ledger entry for each invoiced service contract line).

Only two of them are prepaid, because only invoicing prepaid contracts results in

placing the amounts on the prepaid account.




5. On the Options FastTab:

In the Post until Date field, type “w” to enter the work date. The

program fills in the Posting Date automatically.

In the Action field, select Post Prepaid Transactions.

6. On the Service Ledger Entries FastTab, set the following filters:

Prepaid: Yes

Service Contract No.: The number of the contract you created.

FIGURE 9.21 POSTING PREPAID CONTRACT ENTRIES

7. Click OK.

8. Go back the Service Contract window.

9. In the Action Pane, click Related Information > Contract >

Service Ledger Entries.

10. In the Service Ledger Entries window, scroll to the right and verify

that the Moved from Prepaid Acc. check box is selected for all

lines.


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FIGURE 9.22 THE SERVICE LEDGER ENTRIES WINDOW AFTER POSTING PREPAID CONTRACT ENTRIES


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Service Contract History

The Service Management application area provides access to the history of a

service contract from the day it is created, and is an effective tool for analyzing

and controlling the performance and trends of managing service contracts.

A variety of windows presents the history of service contracts. Each can be

accessed directly from the Service Contract window. The following is the list of

these windows with brief overviews of their usage.

Filed Service Contract

Use the Filed Service Contract window to:

View the filed versions of the contract or contract quote.

File service contracts and contract quotes at any time to record a

copy of the contract or contract quote in the program.

The program files service contracts automatically when contract

quotes are converted to service contracts and service contracts are

canceled.

Contract Change Log

Use the Contract Change Log window to store information about service

contract changes the program logged.

The program fills in the contract change log automatically when specific

information changes in the service contract and its contract lines.

The Register Contract Changes field in the Service Mgt. Setup window

determines whether the program automatically fills in the contract change log.

Service Overview

Use the Service List - Order window to view and access the service orders

currently linked to the service contract.

The Posted Service Shipments window provides a similar service overview in

relation to the posted service shipments linked to the service contract.

Service Document Registers

Use the Service Contract window to directly view the documents the program

created for a service contract.

On the Invoice Details FastTab, there are four fields that count the number of

posted and unposted service invoices and credit memos.


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Click the number in each of these fields, for the Service Document Registers

window to appear with the list of corresponding documents (posted or unposted

service invoices, or credit memos).

To view the selected document, click Card in the Action Pane of the Service

Document Registers window.

Contract Statistics

Use the Contract Statistics window to show the up-to-date status of the service

contract, based on its service ledger entries.

This status includes information about the invoiced, prepaid and total amount,

cost, discount and profit of the service contract. The amounts in the statistics

window are in the currency of the service contract.

Trendscape

Use the Contract Trendscape window to view a detailed financial overview of

service contract transactions by time periods, consisting of prepaid income,

posted income, posted cost, discount amount, profit, and profit percentage for the

service contract by time periods.

The program calculates all amounts from posted service ledger entries (that is,

entries the program creates when service invoices are posted related to the

service contracts).

Gain/Loss Entries

Use the Contract Gain/Loss Entries window to view all the particular service

contract gain/loss entries. Each entry contains information about the change in

annual amount for the contract, and is created automatically when a service

contract quote is converted into a service contract, when:

Adding or deleting a contract line from a service contract.

Canceling a service contract.

Manually updating the annual amount.

Filing Service Contracts and Contract Quotes

File service contracts and contract quotes at any time to record a copy of the

contract or contract quote in the program. The program files contract quotes and

service contracts automatically when contract quotes are converted to service

contracts and when service contracts are canceled.

To file a service contract, follow this procedure:



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2. In the Service Contracts list place containing all registered service

contracts, select the service contract to file and double-click it to

open the Service Contract window.

3. In the Action Pane, click Actions > Functions > File Contract. A

dialog box appears, click Yes to confirm.

4. To view the filed contract, in the Action Pane of the Service

Contract window, click Related Information > Contract > Filed

Contracts. The Filed Service Contract List window appears.

FIGURE 9.23 THE FILED SERVICE CONTRACT LIST WINDOW

5. In the Filed Service Contract List window, select the filed service

contract to view and click Actions > View to open it in the Filed


Use the same procedure to file contract quotes from the Service Contract Quote

window.

Removing a Contract Line from a Service Contract

It may be necessary to remove a contract line from a service contract, for

example, when a service item registered in it breaks down. To remove a contract

line from a service contract, follow this procedure:


2. In the Service Contracts list place, open the service contract to

remove a contract line from.

3. Open the service contract for modifications by clicking Actions >

Functions > Open.

4. Change the content of the Contract Expiration Date field on the

contract line to remove, for example, to the day on which the service

item broke down. Change the contract expiration date to a date not

earlier than the starting date of the contract.

5. In the Action Pane, click Actions > Functions > Remove

Contract Lines. The Remove Lines from Contract window

appears.


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FIGURE 9.24 THE REMOVE LINES FROM CONTRACT WINDOW

6. On the Service Contract Line FastTab, set the filters to apply to

find the contract line. Usually, it is sufficient to set the Contract

Type, Contract No., and Service Item No. filters to find the exact

contract line.

7. On the Options FastTab, fill in the Remove Lines to field with the

date up to which to remove the contract lines. To remove just one

contract line, place the work date in this field.

8. In the Reason Code field, click the AssistButton to open the Reason

Codes window containing all existing reason codes.

9. Select the relevant reason code or create a new one if needed, and

click OK.

10. In the Action field, select the Delete Lines option. Click OK and the

program removes the contract line.


> Functions > Lock to lock the contract to prevent modifications

and apply all the changes made to it.

Use the following procedure to manually remove contract lines:


2. In the Service Contracts list place, open the service contract from

which to remove a contract line.


Functions > Open.


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4. Change the content of the Contract Expiration Date field on the

contract line to remove, for example, to the day on which the service

item broke down. Change the contract expiration date to the date not


5. Right-click the line and then click Delete Line to delete the contract

line. A confirmation message asking whether to remove the contract

line appears. Click Yes.


> Functions > Lock to lock the contract to prevent modifications

and apply all the changes made to it.

NOTE: If the service contract that is having contract lines removed is prepaid,

and it is invoiced in the period when the contract line expired, create a credit

memo for the contract. If the Automatic Credit Memos field in the Service

Contract window on the Invoice Details FastTab, is selected, the program

automatically creates a credit memo when the contract lines are removed.

Canceling a Service Contract

When a customer cancels a contract, the contract in the program must be

canceled. Once the service contract is canceled, it can no longer be modified.

If the service contract is prepaid and it is invoiced, before canceling a contract

create a service credit memo for it.

To cancel a service contract, follow this procedure:


2. In the Service Contracts list place, open the relevant service

contract.


Functions > Open.

4. On the Details FastTab, in the Cancel Reason Code field, click the

AssistButton to select the relevant reason code from the drop-down

list.

NOTE: The Use Contract Cancel Reason field in the Service Mgt. Setup

window specifies whether a cancel reason code must be entered when canceling

a service contract. If it is not specified in the Service Mgt. Setup window that

entering a cancel reason code is mandatory when canceling a service contract,

do not perform the last step.

5. On the General FastTab of the Service Contract window, select

Canceled in the Status field. A dialog box appears, click Yes to

confirm the contract cancellation. Another dialog box appears

informing that it is not possible to change a service contract to its

previous status.


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6. Click Yes to confirm. The program cancels and locks the service

contract. The content of the Status field is changed from Signed to

Canceled.

Creating a Credit Memo for a Service Contract Directly

When removing a contract line from a contract, or canceling a contract, it may be

necessary to credit an invoiced amount to its owner.

Use the Service Contract window to create credit memos for the contract lines

removed, or that belong to the contract being canceled.

The Credit Memo Date field on each contract line contains the date when a

credit memo is created. When a contract expiration date is entered for a contract

line, the program automatically fills in the Credit Memo Date field with the

same date. Entering an earlier date in this field creates a credit memo in advance

for the removal of the service item from the contract.

To create a credit memo for a service contract, follow this procedure:


2. In the Service Contracts list place, open the service contract to

create a credit memo for.

3. Ensure each contract line to include in the credit memo has the

contract expiration date that is no later than the work date and not


4. Click Actions > Functions > Create Credit Memo. A dialog box

appears, asking whether to create a credit note for the contract.

5. Click Yes to confirm. The service contract lines are credited by now,

and a message appears with the number of the credit memo

document created.


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Lab 9.2 – Adding and Removing a Contract Line

In this lab you will practice adding and removing a contract line.

Scenario

Three days after signing the Five Enterprise Pentiums contract, the customer calls

and says that one of the items serviced under this contract is broken down and

they want to have it replaced in the contract with another item they just bought.

Your task is to update a non-prepaid service contract created from the quote by

adding and removing contract lines.

Challenge Yourself

Create a credit memo for the contract line to be removed.

Add and invoice a new contract line.

Need a Little Help?

1. Post the unposted contract service invoice.

2. Create and post a credit memo for the contrat line to be removed.

3. Remove the contract line with serial number 1452854.

4. Create a new contract line with serial number 8934125 and post the

contract service invoice for this line.

Step by Step

Post the unposted contract service invoice.



3. In the Service Contracts list place, select the line containing the

Five Enterprise Pentiums service contract and double-click it to open

the Service Contract window.

4. Expand the Invoice Details FastTab and verify the value in the No.

of Unposted Invoices field. It contains 1.

5. Click the value to open the Service Document Registers window

containing the unposted invoice.

6. In the Action Pane, click Card to open the Service Invoice window.

7. In the Action Pane, click Post and confirm the message that follows.

8. Close the Service Document Registers window to return to the


Verify that the No. of Unposted Invoices field is set to 0 and the No.

of Posted Invoices field contains 1.


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FIGURE 9.25 THE INVOICE DETAILS FASTTAB AFTER POSTING THE CONTRACT SERVICE INVOICE

Create and post a credit memo for the contrat line to be removed.


contract for modifications.

2. On the Lines FastTab, select the line with Serial No. 1452854 and

fill in the Contract Expiration Date field with the work date.


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FIGURE 9.26 SETTING UP THE CONTRACT EXPIRATION DATE

3. In the Action Pane, click Actions > Functions > Create Credit

Memo and accept the message that follows.

4. Click OK to the message with the number of the newly created

credit memo document.

5. On the Invoice Detals FastTab, click the value in the No. of

Unposted Credit Memos field.

The Service Document Registers window opens containing only

one line with the number of the created credit memo.

Comment [adk1]: For STE: Is it correct

to have 37.13 amounts on the lines? NAV4 pdf has different


Page 422

FIGURE 9.27 VERIFYING THE CREATION OF CREDIT MEMO

6. In the Action Pane, click Card to open the Service Credit Memo

window.

FIGURE 9.28 THE SERVICE CREDIT MEMO WINDOW

7. In the Action Pane, click Post and accept the message that follows.



Verify that the No. of Unposted Credit Memos field is set to 0 and

the No. of Posted Credit Memos field contains 1.

Remove the contract line with serial number 1452854.


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1. On the Lines FastTab, select the line to be removed (with Serial No.

1452854), right-click it, and select Delete Line.

2. Confirm the message that follows.

3. Expand the Invoice Details FastTab and verify that the values in the

Calcd. Annual Amount and Annual Amount fields decreased.

Create a new contract line with serial number 8934125 and post the contract

service invoice for this line.

1. On the Lines FastTab, create a new line:

Item No.: 80103

Serial No.: “8934125”

Response Time (Hours): “16”

2. In the Action Pane, click Lock to apply the changes.


4. A message appears offering to create an invoice for a newly added

contract line covering the period left to the next invoice date. Click

Yes.

5. Click OK to the message stating that the service invoice is created.



window.

7. Click Card to open the Service Invoice window.

8. Click Post and confirm the message that follows.

9. Return to the Service Contract window to verify the changed values

on the Invoice Details FatsTab.


4

FIGURE 9.29 THE INVOICE DETAILS FASTTAB AFTER INVOICING THE NEW CONTRACT LINE


Page 425

Lab 9.3 – Creating a Service Contract Template

In this lab you will practice creating a service contract template.

Scenario

The work date is 2/1/2011.

Your main responsibilities are setting up and managing service contracts.

Challenge Yourself

Create a new everyday contract template to use in your job for setting up prepaid

contracts with service level agreements regarding the support of service items.

Need a Little Help?

1. Configure the program to include service items that are serviced and

invoiced once a month.

2. Set up the program to provide a service response within 36 hours for

these items.

3. Set up the program to update contract prices once every two months.

4. Set up the program to always balance the annual amounts of such

service contracts with their contract line amounts.

5. Assign the service contracts created using this template to belong to

the HARDWARE service contract account group.

Step by Step


2. Click Departments > Service > Contract Manangement.

3. Under Administration, click Service Contract Templates.

4. In the Action Pane of the Service Contract Template List window,

click New. The Service Contract Template window opens.

5. Fill in the fields on the General FastTab:

Description: “Prepaid Contract - Support”

Contract Group Code: SUPPORT

Default Service Period: “1M”

Price Update Period: “2M”

Default Response Time (Hours): “36”

6. Fill in the fields on the Invoice FastTab:

Serv. Contract Acc. Gr. Code: HARDWARE

Invoice Period: Month

Select the Prepaid check box.

The Service Contract Template window for the newly created

template looks like this.


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FIGURE 9.30 THE NEW SERVICE CONTRACT – SUPPORT TEMPLATE


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Lab 9.4 – Working on a Service Contract

In this lab you will practice working on a service contract.

Scenario

You are discussing a prospective service agreement with customer 60000, and

preparing a contract quote to set up a service contract.

The starting date of the contract quote is the work date.

The contract is valid for one year only.

CRONUS International Ltd. grants discounts to customers who are serviced

under contracts for more than half a year.

The customer mentioned that their site is open only four days a week, including

holidays: Monday to Thursday, from 10:00 AM to 6:00 PM.

The customer asks you to register the service items for which they might want to

have a service agreement created.

Half a month later, after approving the service level agreement specified in the

service quote, the customer calls to inform you the loudspeaker broke down and

they want the item to be removed from the service contract.

Challenge Yourself

Create a service contract quote and convert it to a service contract.

Create and post a credit memo for the service item to be removed.

Need a Little Help

1. Create a service contract quote using the contract template created in

the previous lab and the following information:

o In the contract quote, set a 10 percent starting discount on costs

and a five percent discount on all labor.

o Set up the contract specific service hours.

2. Create service items that the customer owns and add them as contract

lines to the contract quote. These items are:

o 80005, with serial number 45879552

o FF-100, with serial number 345456563

o LS-150, with serial number 78912712

3. Create a signed service contract from the contract quote and invoice

the customer for the first month.

4. Set the work date to 2/15/2011. Insert the work date as the contract

expiration date for the loudspeaker. Before removing the service

item, create and post a credit memo for it.


Page 428

Step by Step

Create a service contract quote.

1. Verify that the work date is set to 2/1/2011.

2. Click Home > Service Contract Quotes.

3. In the Action Pane of the Service Contract Quotes list place, click

New.

4. With the cursor in the Contract No. field, click ENTER.

5. Confirm the message about using a contract template.

6. In the Service Contract Template List window that appears, select

TEMPL0006 and click OK.

7. In the Customer No. field, select 60000.

The General FastTab of the Service Contract Quote window now

looks like this.

FIGURE 9.31 CREATING THE PREPAID CONTRACT – SUPPORT QUOTE

8. Expand the Details FastTab and fill in the Expiration Date field

with 2/1/2012.

9. In the Action Pane, click Related Informaiton > Quote > Service

Discounts.

10. In the Contract/Service Discounts window, create two lines using

the data from the following table.

Type No. Discount %

Resource Group 5

Cost START 10

11. Click OK.


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12. Click Related Informaiton > Quote > Service Hours.

13. In the Service Hours window:

For Monday, Tueasday, Wednesday and Thursday fill in the

Starting Time and Ending Time fields with “10:00:00 AM” and

“6:00:00 PM”.

Select the Valid on Holidays check box for all lines.

FIGURE 9.32 DEFINING THE SERVICE HOURS

14. Click OK and accept the message that follows.

Create service items and add them to the contract quote.

1. On the Lines FastTab of the Service Contract Quote window, for

the first line, click the AssistButton in the Service Item No. field.

2. In the Service Item List window that opens, click New in the Action

Pane.

3. In the Service Item Card window, fill in the following fields:

On the General FastTab:

Item No.: 80005

Serial No.: “45879552”

On the Customer FastTab:

Customer No.: 60000

4. Click OK.

5. In the Service Item List window, click Actions > Refresh for the

new line to appear.

6. Click OK to copy the information to the contract lines.


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7. Repeat steps 1 to 6 to create two more service items.

For the second line:

Item No.: FF-100

Serial No.: “345456563”

For the third line:

Item No.: LS-150

Serial No.: “78912712”

8. Expand the Invoice Details FastTab.

After creating the service items and adding them to the contract

quote, the Invoice Details FastTab of the Service Contract Quote

window looks like this.

FIGURE 9.33 CREATING SERVICE ITEMS AND ADDING THEM TO THE CONTRACT QUOTE

Create a signed service contract.

1. In the Action Pane of the Service Contract Quote window, click

Make Contract.


3. Go to Home > Service Contracts, browse to the last contract in the

list and double-click it to open the Service Contract window.

4. In the Action Pane, click Create Service Invoice and accept the

message that follows.

5. Click OK.


Unposted Invoices field. The Service Document Registers window

opens containing one line for the created invoice.




Page 431



FIGURE 9.34 THE INVOICE DETAILS FASTTAB OF A SIGNED SERVICE CONTRACT AFTER INVOICING

Remove a service contract line.


2. Select the line for loudspeaker, and change the value in the Credit

Memo Date field to the work date.

3. Change the value in the Contract Expiration Date to the work date

and click OK to the message that follows.

4. In the Action Pane, click Actions > Functions > Create Credit

Memo and accept the message that follows.

5. Click OK to the message stating that the credit memo is created.


Unposted Credit Memos field to open the Service Document

Registers window.

7. In the Action Pane, click Card to open the Service Credit Memo

window.


Page 432

FIGURE 9.35 THE SERVICE CREDIT MEMO CREATED FOR THE LOUDSPEAKER




10. In the Action Pane, click Actions > Functions > Remove

Contract Lines.

11. In the Remove Lines from Contract window, fill in the following

fields:

Reason Code: BROKEN (You need to create this reason code in the

Reason Codes window.)

Action: Delete Lines


Page 433

FIGURE 9.36 REMOVING A SERVICE CONTRACT LINE

12. Click OK.


Page 434

Lab 9.5 – Modifying the Service Contract

In this lab, you will practice modifying the service contract.

Scenario

The next month, there is an increase in the equipment cost used for support

servicing. Therefore, increase the annual amount of the service contract.

On March 11, customer 60000 calls and says they bought a new loudspeaker

from a different company but still wants it to be serviced by CRONUS

International Ltd. under the existing service contract.

On March 27 customer 61000 buys all the service items customer 60000 owns,

and takes over the contract under which they are serviced. The new owner of the

service contract wants all the invoicing of his/her service contracts to be

combined for the same bill-to customer.

Challenge Yourself

Increase the annual amount of the service contract and create a new

line for the loudspeaker.

Change the owner of the service contract.

Need a Little Help?

1. Use the distribution based on line amount method to increase the

equipment cost to 10 automatically.

2. Invoice the service contract for March.

3. Add a new contract line for item LS-150 and invoice it for the

starting period.

4. Change the owner of the service contract and modify the contract for

the program to combine invoices for all contracts with bill-to

customer 61000.

5. Check how the system registered the customer change in the service

contract change log and check the registration of the service items

and the service item logs to determine who the registered owner of

the service items is.

6. Change the work date to 3/31/2011. Post prepaid entries for this

service contract to G/L and view its service ledger entries to

derermine whether all of them are moved from prepaid to income

accounts.

Step by Step

Increase the annual amount.



Page 435

2. Open the service contract you worked on in the previous lab for

modifications and on the Invoice Details FastTab, change the value

in the Annual Amount field from 6.27 to “10”.

3. Press ENTER.

4. In the Contract Amount Distribution window that opens, select the

Distribution Based on Line Amount option.

FIGURE 9.37 INCREASING THE EQUIPMENT COST

5. Click Yes.


7. Click Create Service Invoice and accept the message that follows.

8. Click OK to the message stating that the invoice is created.



window.


FIGURE 9.38 CREATING SERVICE INVOICE AFTER MODIFYING THE ANNUAL AMOUNT

11. Click Post and accept the message that follows.


Page 436



Add a new contract line.


2. Open the service contract for modification.

3. On the Lines FastTab, create a new line by filling in the Item No.

field with LS-150.

4. In the Action Pane, click Lock and then click Yes to the message

that follows.

5. A message appears asking whether to create an invoice for the period

03/11/11..03/31/11. Accept the message.

6. Click OK to to the message stating that the invoice is created.



8. In the Service Document Registers window, click Card to open the

Service Invoice window.




The Invoice Details FastTab now looks like this.

FIGURE 9.39 THE INVOICE DETAILS FASTTAB AFTER ADDING A NEW CONTRACT LINE

Change the owner of the service contract.

1. Open the service contract for modifications.


Page 437

2. In the Action Pane, click Actions > Functions > Change

Customer.

3. In the Change Customer in Contract window that opens, click the

AssistButton in the New Customer No. field and select 61000.

FIGURE 9.40 CHANGING THE CUSTOMER

4. Click OK and then accept the message that follows.

5. On the Invoice Details FastTab, select the Combine Invoices check

box to indicate all future invoices are combined into one for bill-to

customer 61000.


7. Click Related Information > Contract > Change Log to open the

Contract Change Log window.

FIGURE 9.41 VIEWING THE CONTRACT CHANGE LOG

8. On the Lines FastTab of the Service Contract window, click the

AssistButton in the Service Item No. field to open the Service Item

List window.

9. Verify that the Customer No. field is populated with 61000.


Page 438

10. In the Action Pane of the Service Item List window, click Related

Information > Serv. Item > Service Item Log.

FIGURE 9.42 VIEWING THE SERVICE ITEM LOG

Post prepaid entries for the service contract to G/L.






In the Post until Date field, type “w” to enter the work date. The

program fills in the Posting Date automatically.



Prepaid: Yes

Service Contract No.: SC00027

6. Click OK.

7. Return to the Service Contract window.

8. In the Action Pane, click Related Information > Contract >

Service Ledger Entries.


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FIGURE 9.43 THE SERVICE LEDGER ENTRIES WINDOW AFTER POSTING PREPAID CONTRACT ENTRIES

All the entries are already marked as moved from the prepaid account. The entry

which does not have a check mark in the Prepaid field is the entry created when

the new loudspeaker was invoiced for the starting period.


Page 440

Lab 9.6 – Creating Service Orders for the Service Contract

In this lab, you will practice creating service orders for the service contract.

Scenario

The work date is 4/1/2011. You need to invoice the service contract for April.

On 4/17/2011, you need to create service orders for contracts including the new

contract for customer 61000.

Technician Mark Hanson is at the customer’s site the same day, and carried out

the maintenance service on the customer’s service items under the service

contract. Mark calls and says he worked one hour for each service item included

in the contract.

Challenge Yourself

Create a service order for the service contract to further work on it.

Need a Little Help?

1. Invoice the service contract for April.

2. Create a contract service order including the next planned service

dates on the contract lines in the service contract.

3. Register the amount of labor in the service order.

4. Check the amount to be posted and view the effects of the contract

discount on the registered hours used for servicing.

5. Post the service order and invoice it.

6. The work date is 4/30/2011. Post prepaid entries to G/L. View the

service contract trendscape for a financial overview of all

transactions performed on the service contract.

Step by Step

Create a service invoice.


2. Open the service contract you worked on in the previous lab and in

the Action Pane, click Create Service Invoice.

3. Accept the message to confirm creating an invoice for the contract,

and then click OK.



5. In the Service Document Registers window, click Card to open the

Service Invoice window.



Page 441



The Invoice Details FastTab now looks like this.

FIGURE 9.44 THE INVOICE DETAILS FASTTAB AFTER CREATING AND POSTING THE SERVICE INVOICE

Create a contract service order.



3. Under Periodic Activities, click Create Service Contract Orders.

The Create Contract Service Orders window appears.

4. On the Options FastTab, fill in the following fields:


Ending Date: 4/17/2011

Action: Create Service Order

5. On the Service Contract Header FastTab, verify the filters:


Prepaid: Yes

6. Click OK.

7. A message appears stating that one service order is created. Click

OK.

8. Go to Home > Service Orders.

9. Browse to the last order in the list and double-click it to open the

Service Order window.

The Invoicing FastTab for the newly created service order looks like

this.


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FIGURE 9.45 THE INVOICING FASTTAB OF THE NEWLY CREATED SERVICE ORDER

Register the amount of labor.

1. On the Lines FastTab of the Service Order window, click Actions

> Order > Service Lines.

2. In the Service Lines window, create a line for a computer service

item:

Service Item No.: 76

Type: Resource

No.: MARK

Quantity: “1”

3. Repeat step 2 to create the lines for filter and loudspeaker service

items.

FIGURE 9.46 REGISTERING LABOR


Page 443

Post and invoice the service order.

1. On the General FastTab of the Service Order window, in the

Service Order Type field, select HARDWARE.

2. On the Lines FastTab, for all lines, specify the fault reason code.

3. In the Action Pane, click Post.

4. Select the Ship and Invoice option and click OK.

5. Go to Posted Documents > Posted Service Invoices.

6. Browse to the last invoice in the list and double-click it to open the

Posted Service Invoice window.

FIGURE 9.47 POSTING AND INVOICING THE SERVICE ORDER

Post the prepaid contract entries to G/L.






In the Post until Date field, type “w” to enter the work date.



Prepaid: Yes

Service Contract No.: “SC00027”

6. Click OK.


8. Open the service contract for customer 61000.


Page 444

9. In the Action Pane of the Service Contract window, click Related

Information > Contract > Statistics > Trendscape. The Contract

Trendscape window appears. Scroll in the window to view the

amounts in proper periods.

FIGURE 9.48 VIEWING THE POSTED VALUES IN THE CONTRACT TRENDSCAPE WINDOW

Comment [adk2]: For STE: Can be “strange” values, need to check on your PC


Page 445

Summary

The chapter describes the main procedures performed when working on service

contracts:

Updating the contract.

Working on periodic activities.

Viewing the service contract history.

The demonstrations included in the chapter show how to:

Invoice the prepaid service contracts.

Create service orders for the prepaid service contracts.

Update prices of the prepaid service contracts.

Post prepaid service contract entries.

Remove expired contract lines from prepaid service contracts.


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Test Your Knowledge

1. What is the first thing to do when you want to include an unregistered item in

an existing service contract?

2. Complete the following sentence:

When the Create Contract Service Orders batch job is run the program

creates _____________ ___________ and fills them in with the information

from the corresponding _______________ ______________.

3. Which batch job is used to transfer prepaid service contract ledger entry

amounts from prepaid accounts to income accounts?

( ) Remove Contract Lines

( ) Create Contract Service Orders

( ) Create Contract Invoices

( ) Post Prepaid Contract Entries

4. What entries does the program create when contract lines are added or

removed from service contracts, when service contract prices are updated, or

contracts are canceled?


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5. True or False:

When a service contract is canceled or a contract quote is converted into a

service contract, the File Contract function needs to be run to record a copy

of the contract or contract quote in the program.


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Quick Interaction: Lessons Learned

Take a moment and write down three Key Points you have learned from this

chapter:

1.

2.

3.


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Solutions

Test Your Knowledge

1. What is the first thing to do when you want to include an unregistered item in

an existing service contract?

MODEL ANSWER:

When you want to include a new item in an existing service contract, register the

item as a service item first.

2. Complete the following sentence:

When the Create Contract Service Orders batch job is run the program

creates _____________ ___________ and fills them in with the information

from the corresponding _______________ ______________.

MODEL ANSWER:

When the Create Contract Service Orders batch job is run the program creates

service orders and fills them in with the information from the corresponding

service contracts.

3. Which batch job is used to transfer prepaid service contract ledger entry

amounts from prepaid accounts to income accounts?

( ) Remove Contract Lines

( ) Create Contract Service Orders

( ) Create Contract Invoices

(√) Post Prepaid Contract Entries

4. What entries does the program create when contract lines are added or

removed from service contracts, when service contract prices are updated, or

contracts are canceled?

MODEL ANSWER:

When contract lines are added or removed from service contracts, when service

contract prices are updated, or contracts are canceled, the program creates

contract gain/loss entries.

5. True or False:

When a service contract is canceled or a contract quote ia converted into a

service contract, the File Contract function needs to be run to record a copy

of the contract or contract quote in the program.

MODEL ANSWER:


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False: The program files service contracts automatically when contract quotes are

converted to service contracts and when service contracts are canceled.


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na2009 enus sm_09

Technology

service contract window

service contract quote

existing service contract

service contract history

service contractsfigure

contract changes

service quotes

service invoices