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Na2009 enus sm_09
Na2009 enus sm_09
Na2009 enus sm_09
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Na2009 enus sm_09

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  • 1. Chapter 9: Working on Service ContractsCHAPTER 9: WORKING ON SERVICE CONTRACTSObjectives 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. Page 383
  • 2. Chapter 9: Working on Service ContractsUpdating 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.Page 384
  • 3. Chapter 9: Working on Service ContractsFIGURE 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. Page 385
  • 4. Chapter 9: Working on Service Contracts 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: 1. Click Home > Service Contracts. 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.Page 386
  • 5. Chapter 9: Working on Service Contracts 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 theyare already registered in other contracts. When at least one of these service itemsis 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 ContractCopy contract lines into a service contract from another service contractbelonging to the same owner, using the following procedure: 1. Click Home > Service Contracts. 2. In the Service Contracts list place, select the contract to be updated 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 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. Page 387
  • 6. Chapter 9: Working on Service Contracts 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.Page 388
  • 7. Chapter 9: Working on Service ContractsPeriodic 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 Service Contract window. 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. Page 389
  • 8. Chapter 9: Working on Service Contracts 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.Page 390
  • 9. Chapter 9: Working on Service Contracts 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. Page 391
  • 10. Chapter 9: Working on Service Contracts 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.Page 392
  • 11. Chapter 9: Working on Service Contracts 16. Repeat steps 12 to 15 for the second and third service contracts.Creating Service Orders from ContractsWhen managing service contracts it may be necessary to create service ordersbased on contracts that satisfy specific requirements. For example, to createservice orders for the maintenance of service items included in the servicecontracts belonging to a specific customer or for them to start to be valid at aspecific date.To create service orders for service contracts, or to print a test report for servicecontracts, use the Create Contract Service Orders batch job.When the Create Contract Service Orders batch job is run the program createsservice orders and fills them in with the information from the correspondingservice contracts.Alternatively, use the Contr. Serv. Orders – Test report to test which servicecontracts include service items due for service within the specified period. Thereport 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 PrepaidService ContractsIn this demonstration, create service orders for the three prepaid service contractsfrom the previous demonstration. Use the Create Contract Service Ordersbatch job for this purpose. 1. Change the work date to 4/25/2010. 2. Click Departments > Service > Contract Management. 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. Page 393
  • 12. Chapter 9: Working on Service Contracts 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. 5. On the Service Contract Header FastTab, set the following filters: Contract Type: Contract Prepaid: Yes Starting Date: 4/25/2010 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:Page 394
  • 13. Chapter 9: Working on Service Contracts 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 thecontract lines by applying the price update percentage specified to their linevalues, line amounts, line discount percentages, and profits, and updates theannual and calculated annual amounts of the service contracts.Alternatively, use the Contract Price Update – Test report to test which servicecontracts need price updates up to the date specified. The report shows thefollowing information: Contract numbers. Customer numbers. Contract amounts. Price update percentages. Any errors that occurred while updating.Demonstration: Update Prices of the Prepaid ServiceContractsIn this demonstration use the same three service contracts as before. Update theirprices using the Update Contract Prices batch job. 1. Change the work date to 5/26/2010. 2. Click Departments > Service > Contract Management. 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. 8. On the Service Contract Header FastTab, set the following filters: Contract Type: Contract Prepaid: Yes Starting Date: 4/25/2010The Update Contract Prices window looks like this. Page 395
  • 14. Chapter 9: Working on Service Contracts 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.Page 396
  • 15. Chapter 9: Working on Service ContractsAlternatively, use the Prepaid Contr. Entries – Test report to test the transfer ofprepaid service contract ledger entry amounts from prepaid accounts to incomeaccounts 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 thejournal lines created for the transfer in the Service Mgt. Setup window.Demonstration: Post Prepaid Service Contracts EntriesIn this demonstration, use the same three service contracts created in the firstdemonstration. Post prepaid entries to G/L using the Post Prepaid ContractEntries batch job. 1. Change the work date to 31/05/01. 2. Click Departments > Service > Contract Management. 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. Page 397
  • 16. Chapter 9: Working on Service Contracts 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.Page 398
  • 17. Chapter 9: Working on Service ContractsAlternatively, use the Expired Contract Lines – Test report to test whichservice 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 fromPrepaid Service ContractsIn this demonstration, use the same three service contracts created in the firstdemonstration. Remove the expired contract lines using the Remove Lines fromContract batch job. 1. Change the work date to 11/1/2010. 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. 4. Click Departments > Service > Contract Management. 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. Page 399
  • 18. Chapter 9: Working on Service Contracts 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.Page 400
  • 19. Chapter 9: Working on Service ContractsFIGURE 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 serviceinvoices for the current invoice periods are posted, create credit memos for themmanually in the Service Contract window. If there is a check mark in theAutomatic Credit Memos field on the Invoice Details FastTab for some servicecontracts, the program automatically creates corresponding credit memos whenremoving expired contract lines.Viewing Contract Gain/LossTo obtain an overview of gains and losses on service contracts, the programautomatically creates contract gain/loss entries when there is a change in theannual 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: 1. Click Departments > Service > Contract Management. 2. Under Contract Gain/Loss by, the following menu options are available: Page 401
  • 20. Chapter 9: Working on Service Contracts 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.Page 402
  • 21. Chapter 9: Working on Service Contracts View as: Select the type of amount that will be displayed.After you fill in the fields in the Contract Gain/Loss (Contracts) window, inthe Action Pane click Show Matrix to view the matrix.FIGURE 9.14 THE CONTRACT GAIN/LOSS (CONTRACT) MATRIX WINDOWThe 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 longerperiod, do it faster by shifting to a larger period such as Quarter. When thedesired period is found, shift back to the original period Day to view the data ingreater detail.Also use the two reports in the Service Management application area to view andprint information about contract gains and losses.The Contract Gain/Loss Entries ReportThis report prints all service contract gain/loss entries, and shows the followinginformation: Contract number Reason code Contract group code Responsibility center Customer number Page 403
  • 22. Chapter 9: Working on Service Contracts 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 AmountPage 404
  • 23. Chapter 9: Working on Service ContractsLab 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 Page 405
  • 24. Chapter 9: Working on Service Contracts 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. 1. Click Home > Service Contracts. 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. 9. Click Yes to the message that follows. 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.Page 406
  • 25. Chapter 9: Working on Service ContractsFIGURE 9.15 THE SERVICE CONTRACT WINDOW AFTER SIGNINGUpdate 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 Page 407
  • 26. Chapter 9: Working on Service Contracts 7. Click Departments > Service > Contract Management. 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 10. On the Service Contract Header FastTab, set the following filters: Contract Type: Contract 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.Page 408
  • 27. Chapter 9: Working on Service ContractsFIGURE 9.18 VIEWING THE CHANGED ANNUAL AMOUNTS AFTER PRICEUPDATEInvoice the service contract directly and post it. 1. In the Action Pane of the Service Contract window, click Create Service Invoice. 2. Click Yes to the message that follows. 3. Click OK to the message stating that the invoice is created. 4. On the Invoice Details FastTab, click the value in the No. of Unposted Invoices field. 5. In the Service Document Registers window that opens, click Card. The created service invoice looks like this. Page 409
  • 28. Chapter 9: Working on Service Contracts 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. 9. In the Action Pane of the Service Contract window, click Actions > 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. 1. Change the work date to 12/31/2010. 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.Page 410
  • 29. Chapter 9: Working on Service ContractsSince the service contract is invoiced twice, for the starting period and forDecember, there are four service ledger entries of the Sale entry type (one serviceledger entry for each invoiced service contract line).Only two of them are prepaid, because only invoicing prepaid contracts results inplacing the amounts on the prepaid account. 3. Click Departments > Service > Contract Management. 4. Under Periodic Activities, click Post Prepaid Service Contract Entries. The Post Prepaid Contract Entries window appears. 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. Page 411
  • 30. Chapter 9: Working on Service Contracts FIGURE 9.22 THE SERVICE LEDGER ENTRIES WINDOW AFTER POSTING PREPAID CONTRACT ENTRIESPage 412
  • 31. Chapter 9: Working on Service ContractsService 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. Page 413
  • 32. Chapter 9: Working on Service Contracts 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: 1. Click Home > Service Contracts.Page 414
  • 33. Chapter 9: Working on Service Contracts 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 Service Contract window.Use the same procedure to file contract quotes from the Service Contract Quotewindow.Removing a Contract Line from a Service ContractIt may be necessary to remove a contract line from a service contract, forexample, when a service item registered in it breaks down. To remove a contractline from a service contract, follow this procedure: 1. Click Home > Service Contracts. 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. Page 415
  • 34. Chapter 9: Working on Service Contracts 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. 11. In the Action Pane of the Service Contract window, click Actions > 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: 1. Click Home > Service Contracts. 2. In the Service Contracts list place, open the service contract from which to remove a contract line. 3. Open the service contract for modifications by clicking Actions > Functions > Open.Page 416
  • 35. Chapter 9: Working on Service Contracts 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 earlier than the starting date of the contract. 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. 6. In the Action Pane of the Service Contract window, click Actions > 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 creditmemo for the contract. If the Automatic Credit Memos field in the ServiceContract window on the Invoice Details FastTab, is selected, the programautomatically creates a credit memo when the contract lines are removed.Canceling a Service ContractWhen a customer cancels a contract, the contract in the program must becanceled. 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 contractcreate a service credit memo for it.To cancel a service contract, follow this procedure: 1. Click Home > Service Contracts. 2. In the Service Contracts list place, open the relevant service contract. 3. Open the service contract for modifications by clicking Actions > 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. Setupwindow specifies whether a cancel reason code must be entered when cancelinga service contract. If it is not specified in the Service Mgt. Setup window thatentering 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. Page 417
  • 36. Chapter 9: Working on Service Contracts 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: 1. Click Home > Service Contracts. 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 earlier than the starting date of the contract. 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.Page 418
  • 37. Chapter 9: Working on Service ContractsLab 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. 1. Change the work date to 1/28/2010. 2. Click Home > Service Contracts. 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 Service Contract window. Verify that the No. of Unposted Invoices field is set to 0 and the No. of Posted Invoices field contains 1. Page 419
  • 38. Chapter 9: Working on Service Contracts 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. 1. In the Action Pane, click Actions > Functions > Open to open the 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.Page 420
  • 39. Chapter 9: Working on Service ContractsFIGURE 9.26 SETTING UP THE CONTRACT EXPIRATION DATE Comment [adk1]: For STE: Is it correct to have 37.13 amounts on the lines? NAV4 3. In the Action Pane, click Actions > Functions > Create Credit pdf has different 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. Page 421
  • 40. Chapter 9: Working on Service Contracts 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. 8. Close the Service Document Registers window to return to the Service Contract window. 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.Page 422
  • 41. Chapter 9: Working on Service Contracts 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 contractservice 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. 3. Click Yes to the message that follows. 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. 6. On the Invoice Details FastTab, click the value in the No. of Unposted Invoices field to open the Service Document Registers 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. Page 423
  • 42. Chapter 9: Working on Service Contracts FIGURE 9.29 THE INVOICE DETAILS FASTTAB AFTER INVOICING THE NEW CONTRACT LINEPage 424
  • 43. Chapter 9: Working on Service ContractsLab 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 1. Change the work date to 2/1/2011. 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. Page 425
  • 44. Chapter 9: Working on Service Contracts FIGURE 9.30 THE NEW SERVICE CONTRACT – SUPPORT TEMPLATEPage 426
  • 45. Chapter 9: Working on Service ContractsLab 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 427
  • 46. Chapter 9: Working on Service Contracts 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.Page 428
  • 47. Chapter 9: Working on Service Contracts 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. Page 429
  • 48. Chapter 9: Working on Service Contracts 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. 2. Click Yes to the message that follows. 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. 6. On the Invoice Details FastTab, click the value in the No. of Unposted Invoices field. The Service Document Registers window opens containing one line for the created invoice. 7. In the Action Pane, click Card to open the Service Invoice window. 8. In the Action Pane, click Post and accept the message that follows.Page 430
  • 49. Chapter 9: Working on Service Contracts 9. Close the Service Document Registers window to return to the Service Contract window.FIGURE 9.34 THE INVOICE DETAILS FASTTAB OF A SIGNED SERVICECONTRACT AFTER INVOICINGRemove a service contract line. 1. Change the work date to 2/15/2011. 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. 6. On the Invoice Details FastTab, click the value in the No. of 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 431
  • 50. Chapter 9: Working on Service Contracts FIGURE 9.35 THE SERVICE CREDIT MEMO CREATED FOR THE LOUDSPEAKER 8. In the Action Pane, click Post and accept the message that follows. 9. Close the Service Document Registers window to return to the Service Contract window. 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 LinesPage 432
  • 51. Chapter 9: Working on Service ContractsFIGURE 9.36 REMOVING A SERVICE CONTRACT LINE 12. Click OK. Page 433
  • 52. Chapter 9: Working on Service ContractsLab 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. 1. Change the work date to 3/1/2011.Page 434
  • 53. Chapter 9: Working on Service Contracts 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. 6. In the Action Pane, click Lock to apply the changes. 7. Click Create Service Invoice and accept the message that follows. 8. Click OK to the message stating that the invoice is created. 9. On the Invoice Details FastTab, click the value in the No. of Unposted Invoices field to open the Service Document Registers window. 10. In the Action Pane, click Card to open the Service Invoice window.FIGURE 9.38 CREATING SERVICE INVOICE AFTER MODIFYING THEANNUAL AMOUNT 11. Click Post and accept the message that follows. Page 435
  • 54. Chapter 9: Working on Service Contracts 12. Close the Service Document Registers window to return to the Service Contract window. Add a new contract line. 1. Change the work date to 3/11/2011. 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. 7. On the Invoice Details FastTab, click the value in the No. of Unposted Invoices field. 8. In the Service Document Registers window, click Card to open the Service Invoice window. 9. Click Post and accept the message that follows. 10. Close the Service Document Registers window to return to the Service Contract 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 436
  • 55. Chapter 9: Working on Service Contracts 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. 6. In the Action Pane, click Lock to apply the changes. 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 437
  • 56. Chapter 9: Working on Service Contracts 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. 1. Change the work date to 3/31/2011. 2. Click Departments > Service > Contract Management. 3. Under Periodic Activities, click Post Prepaid Service Contract Entries. The Post Prepaid Contract Entries window appears. 4. 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. 5. On the Service Ledger Entries FastTab, set the following filters: 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.Page 438
  • 57. Chapter 9: Working on Service ContractsFIGURE 9.43 THE SERVICE LEDGER ENTRIES WINDOW AFTER POSTINGPREPAID CONTRACT ENTRIESAll the entries are already marked as moved from the prepaid account. The entrywhich does not have a check mark in the Prepaid field is the entry created whenthe new loudspeaker was invoiced for the starting period. Page 439
  • 58. Chapter 9: Working on Service ContractsLab 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. 1. Change the work date to 4/1/2011. 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. 4. On the Invoice Details FastTab, click the value in the No. of Unposted Invoices field. 5. In the Service Document Registers window, click Card to open the Service Invoice window. 6. Click Post and accept the message that follows.Page 440
  • 59. Chapter 9: Working on Service Contracts 7. Close the Service Document Registers window to return to the Service Contract window. The Invoice Details FastTab now looks like this.FIGURE 9.44 THE INVOICE DETAILS FASTTAB AFTER CREATING ANDPOSTING THE SERVICE INVOICECreate a contract service order. 1. Change the work date to 4/17/2011. 2. Click Departments > Service > Contract Management. 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: Starting Date: 2/1/2011 Ending Date: 4/17/2011 Action: Create Service Order 5. On the Service Contract Header FastTab, verify the filters: Contract Type: Contract 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. Page 441
  • 60. Chapter 9: Working on Service Contracts 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 LABORPage 442
  • 61. Chapter 9: Working on Service ContractsPost 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 ORDERPost the prepaid contract entries to G/L. 1. Change the work date to 4/30/2011. 2. Click Departments > Service > Contract Management. 3. Under Periodic Activities, click Post Prepaid Service Contract Entries. The Post Prepaid Contract Entries window appears. 4. On the Options FastTab: In the Post until Date field, type “w” to enter the work date. In the Action field, select Post Prepaid Transactions. 5. On the Service Ledger Entries FastTab, set the following filters: Prepaid: Yes Service Contract No.: “SC00027” 6. Click OK. 7. Click Home > Service Contracts. 8. Open the service contract for customer 61000. Page 443
  • 62. Chapter 9: Working on Service Contracts 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 PCPage 444
  • 63. Chapter 9: Working on Service ContractsSummary 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. Page 445
  • 64. Chapter 9: Working on Service ContractsTest 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?Page 446
  • 65. Chapter 9: Working on Service Contracts5. 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. Page 447
  • 66. Chapter 9: Working on Service ContractsQuick Interaction: Lessons Learned Take a moment and write down three Key Points you have learned from this chapter: 1. 2. 3.Page 448
  • 67. Chapter 9: Working on Service ContractsSolutions 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: Page 449
  • 68. Chapter 9: Working on Service Contracts False: The program files service contracts automatically when contract quotes are converted to service contracts and when service contracts are canceled.Page 450
  • 69. Chapter 9: Working on Service Contracts Page 451

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