Creating Deposit/Time Block Based Contracts

On the e-automate toolbar, click [Contracts] to open the Service Contracts window.

Click [New] to open the New Service Contract window.

Complete the following fields as appropriate:

Contract number: Number of the contract. Automatically assigned the next sequential number in the database, but you may change this number.

Rev: Revision number of the contract number.

Customer: Name of the customer.

Contract type: Contract type which specifies default settings on the contract. Is also identifies the default base distribution code which tells e-automate how to handle revenue and unearned revenue on the service contract. The base distribution code also specifies how or if the deposit based charges are taxed or not. Be sure to select a contract type with the capability to accrue, reflected in the Contract type lookup in column Allow Accruals as Yes.

Contract bill code: Designation of how this customer will be billed for service performed on equipment covered in the contract. Typically this is a time and materials style bill code.

In the Status field, select one of the following:

Active: Allows the contract you are creating to be active as soon as you save the contract.

Inactive: Contract is currently not in force regardless of the dates.

Pending Billing Payment: Allows you to bill the contract and have the status change to Pending Payment once the contract is billed.

Pending Payment: Makes the contract cover the equipment on the contract until the contract bill-to customer has paid the contract invoice.

Pending Proposal: Allows you to create a contract proposal that will not cover the equipment until the contract is converted to an active contract.

Terminated: Status assigned to a contract when you have terminated the contract. If a contract is Terminated (termination code identified), e-automate synchronizes the Status field when the contract is saved.

In the Billing Method region, select Deposit.

Complete the following fields as appropriate:

Deposit Balance: Non-editable field to display the balance remaining on the customer’s contract.

Time block based: When checked e-automate changes the display to reflect balances in hours as well as dollars.

Remaining hours: When Time blocked based is checked e-automate displays this field as well as Deposit balance.

Start date: Date on which the contract begins.

Expiration date: If this contract expires on a particular date, check the box and select the date. This contract also expires when the unearned balance is used up.

Click the Deposit Based Billing tab to bring it forward.

In the Billing settings region, in the Billing amount field, enter amount the customer is billed in dollars unless Time block based is checked and the amount is displayed in dollars but entered in hours in the Hours field. Rate per hour calculated using the Standard rate field on the bill code identified in the Contract bill code field or if using advanced bill code in the Regular hourly rate field identified on the billing labor code linked to the advanced bill code.

Use the lookup to select the distribution code you want to associate with this contract or click the drop-down menu to create a new distribution code.

In the Re-bill settings region, select one of the following:

Re-bill when balance is below: If the deposit contract balance goes below this amount, the customer is billed the dollar amount in the Billing amount field during the contract billing process. If the contract has the Time block based checkbox checked, e-automate displays the Hours field.

Re-bill to zero if balance goes negative: If you allow negative values on deposit based contracts, when or if the contract goes negative, e-automate bills the contract back to zero.

Re-bill on cycle: When selected, you can specify on which cycle you want this contract to re-bill. After selecting Re-bill on cycle, do the following.

In the Billing cycle field use the Lookup to select the desired billing cycle.

In the Billing period field, enter the date you want the want the billing cycle to begin. The date the billing period ends displays after through.

Do not re-bill: When selected this contract does not re-bill.

In the Accruals region, check the Accrue/defer revenue checkbox to have e-automate place the billing amount in a deferred revenue account identified by the base distribution code on the contract type during the first billing. When service calls are invoiced, e-automate recognizes a portion with each service call.

In the Discounts region, complete the following fields as appropriate:

Labor discount: Percentage discount being taken from labor charges for this contract.

Materials discount: Percentage discount being taken from materials charges for this contract.

Apply contract billing discount: When checked, you can apply a discount to the deposit based contract. This allows you to offer a higher value or services for the actual amount billed to the customer. When checked, in the Discount percent field, enter your discount amount. The Discount balance field is displayed. E-automate populates this field when the contract is billed. As you earn revenue, e-automate incrementally recognizes the discounts. For users that have Service Contract (Unearned Balance) right, they can edit this amount.

Activated on: Date this contract becomes activated.

Terminated on: Date this contract is terminated when it has been terminated.

Termination code: When you terminate a contract, you use this field to identify the reason for the termination.

Click the Equipment/Item tab to bring it forward.

Select the Show only current equipment checkbox to allow the contract to only display current equipment/items on the service contract. If you remove the equipment/item from the contract they are hidden from view.

Click [Add] to open the Add Contract Equipment/Item window.

On the Equipment/Item tab select either the Equipment or Item radio button and complete the following fields as appropriate:

Equipment/Item number: Equipment or item to be included under this contract.

Description: Add an optional description for this equipment or item.

Quantity: Enter the quantity of the Item(s) to be added on the contract.

Unit base rate: This field in inactive and not used on deposit based contracts.

Base rate: This field in inactive and not used on deposit based contracts.

Start coverage date: The date you want to start coverage for this equipment/item on this contract. If the equipment/item is supposed to be on this contract as of the contract Start date, this date is not necessary. This date is only necessary when you want to add equipment/item coverage after the contract Start date.

Start base billing date: This field is only applicable on installment based billing contracts.

End coverage date: The date you end coverage for this equipment/item on this contract. This date is only necessary when you want to remove equipment/item coverage prior to the contract Expiration date.

End base billing: This field is only applicable on installment based billing contracts.

Termination code: When you are removing equipment/items from a contract, you use this field to identify the reason for the removal. If you place an End coverage date on a contract for equipment, e-automate requires you to enter the termination code or reason for the end of coverage. This field is not accessible when creating a new contract. For more information, see the Adding and Removing Equipment on Service Contracts topic.

Bill code: Defines the coverage of items, labor and travel for this equipment/item on this contract. This bill code overrides the Contract bill code field, if entered. Typically, you enter a bill code here for equipment/items that are covered differently from the Contract bill code.

SLA code: SLA code assigned to this equipment/item.

Tax code: Tax code assigned to this equipment/item.

Override taxable: If left unchecked, the system will use the taxable status and exempt code assigned to the contract on the Billing/Contact tab. When checked, the system will populate the Taxable checkbox and Exempt code field with those used on the ship to customer. You can modify the Taxable checkbox and Exempt code field as necessary.

Taxable: When checked, e-automate calculates and assesses tax on the contract according to the tax code identified. When unchecked, the Exempt code field becomes active. The taxable status defaults to the taxable status assigned to the equipment/item location customer. If necessary, you can edit the taxable status.

Exempt code: Exempt code identifying why the equipment/item is not taxable. The exempt code defaults to the exempt code assigned to the equipment/item location customer. If necessary, you can edit the exempt code.

Branch: Branch associated with the contract.  

Location: Click [Edit Equipment Location] (pencil button) to modify the equipment/item’s contract location. Billing information is displayed below the equipment/item location region.

Remarks: Enter optional remarks for this location.

Click the Item limits tab to bring it forward.

Enter any applicable equipment/item limits. For more information on configuring contract equipment/item limits, see the Configuring Contract Item Usage Limits topic.

If present, click the Custom Properties tab to bring it forward.

Enter any applicable custom property information.

Click [OK] to add the equipment and return to the New Service Contract window.

Repeat Steps 2 – 9 to add additional equipment to this deposit-based/time-based contract.

Click the Billing/Contact tab to bring it forward.

Complete the following fields as appropriate:

Bill to: Customer to receive the bills for this contract.

Branch: Branch assignment of the customer. This field displays if the branching feature is enabled.

Group invoices according to customer, bill to, etc.: When checked, this contract is billed as a single invoice grouped with billings for other contracts. In order for a contract to bill on a single invoice from grouped contracts the contracts must have the same customer, bill to customer, branch, tax flag, terms, charge methods, charge accounts and contract statuses.

Bill contract: When checked, the contract is eligible to bill.

Billing group: Designation to group this contract with other contracts in order to make them easier to maintain. Use the lookup icon to select the billing group.

Tax code: Tax code for this contract.

Quick tax button: Use the Quick tax button to select the tax code based on the customer, bill to customer or equipment location to assign a tax code to the service contract.
Taxable: When checked, this contract is taxable. The contract will be taxed based on the tax definitions associated with the tax code and associated tax authorities. When checked, e-automate calculates and assesses tax on the sales quote according to the tax code identified. When unchecked, the Exempt code field becomes active.

Use equipment tax codes: Not applicable to deposit based/time block contracts.

Exempt code: Use the Lookup to select the appropriate exempt code, if applicable.

Terms: Payment terms for this contract.

Sales rep: Sales rep responsible for this contract.

In the Report group field, use the lookup to select a report group.

To change the report group settings, do the following:

Click [Settings] to open the Invoice Report Settings for Contract (Next)-01 window.

If you want to override the contact associated with the customer in the Bill to field, check the Override the ‘Bill to’ accounts receivable contact checkbox.

In the Accounts receivable contact field, use the lookup icon to select an appropriate contact.

In the Invoice sent method, use the drop-down menu and select Email.

If you want to use this contact for service call invoices, check the Use this contact for service invoices that are associated with this contract checkbox.

Click [OK] to save your settings.

Complete the following fields as appropriate:

Contact: Person to contact at this company about this contract. You can use the lookup icon to select a contact or simply type in the contact information.

To view all contacts, use the drop-down menu to select No filter.

To view contacts for this customer only (the default setting), use the drop-down menu to select Filter > Customer contacts.

To view contacts for this customer, this customer's parent customer (if any), and/or contacts who are not currently associated with any customer, use the drop-down menu to select Filter > Customer, parent, or unassociated contacts.

To add a new contact, use the drop-down menu to select New. The system displays the New Contact window.  For more information on creating a new contact, see the Creating Contacts topic.

Name: If you did not select a contact, you can enter a contact in the name field.

Phone: Contact person's phone number.

Fax: Contact person's fax number.

Blanket PO: Purchase order number from the customer for this contract. This is pre-populated from the customer profile.

Lease schedule number: Lease schedule number to be tracked, if any.

Job: Job associated with the contract, if any.

Charge method: The method used to charge the customer. If you select Credit Card/ACH, e-automate displays the Card to bill field.

Card to bill: Use the lookup icon to select the credit card you want to bill for this contract. If no credit card is present, save this contract, edit the customer record and add a charge account.

Lock bill code: When checked, e-automate locks the bill code assigned to this contract. If any changes are made to the bill code, e-automate creates a revision number on the bill code and leaves the settings associated with the bill code when the contract was originally defined. You can also configure e-automate to use the newest version of a bill code when the contract is updated by checking the Use the latest bill code revision upon renewal checkbox.

Click the Item Limits tab to bring it forward.

For information on contract level item limits, see the Configuring Contract Item Limits topic.

Click the Custom Properties tab to bring it forward.

On the messages tab you may enter any notes that you want seen by users that are working with contracts. You can require the user must acknowledge they have read the message before they are able to bill the contract. When contracts with messages are moved to the billing queue e-automate indicates whether or not there is a message that the person billing the contracts can read. If you require the user acknowledges the message, the user must actually tell the system that it is okay to bill that contract.

Click the Messages tab to bring it forward.

In the Billing queue message region, enter any messages you want seen by users working with contracts.

If you want users to be required to acknowledge they have read the message before they can bill the contract, check the Require acknowledgement (Billing queue only) checkbox.

To include one time remarks, do the following:

Check the Print on next invoice checkbox.

In the One-time remark field, enter the remarks you want to print on the next contract invoice.

To add a recurring remark that is displayed on each contract invoice, click in the Recurring remark field and enter the remark.

Click [OK] save the new deposit based service contract.