Creating Contract Invoices from Proposals

When you renew or create a service contract, you can configure the Contracts module to create a contract proposal instead of a new contract invoice. The difference between a contract proposal and a contract invoice is that the contract invoice posts to your general ledger and accounts receivable, whereas a proposal does not post until you receive payment. This allows you to propose a significant number of contracts without adversely affecting your general ledger. At the top of your contract proposal report, e-automate prints, "Contract XXXXXX." You can configure your system to print any value for the XXXXXX. For example, you may choose to print, "Contract Proposal," "Contract Renewal," or "Contract Invoice."

When a contract proposal is created in e-automate, you can convert the proposal to a contract invoice when receiving a payment or from the Contract Billing window on the Invoices/Proposals tab. This topic is how to convert through accounts receivable payments. For additional information on the other methods, see Working with Proposals. When in the Record Customer Payment window, customers that have contract proposals associated with their accounts display the Proposals button. You use this button to create a contract invoice from the proposal that was previously created in the Contracts module. Your system administrator determines if the invoice created bears the same number as the proposal, or if a new invoice number is created based on the current accounts receivable invoice number.

Getting to the TransactionGetting to the Transaction

From the Accounting menu, select Accounts receivable > Record customer payments

Note: You can also access the Record Customer Payment window using the Accounts Receivable Console.

In the Customer field, use the lookup and select the customer from which you have a proposal and are receiving payment.

In the Description field, type an optional description.

Proposals ButtonProposals Button

Locate and click [Proposals] to open the Open Contract Proposals window. The button is displayed immediately below the Description field of the Record Customer Payment window.

Note: The button only displays if the customer has open contract proposals.

Select the contract proposal the customer is accepting and check the checkbox next to the proposal number in the Proposal number column.

Note: If the customer is accepting multiple proposals, you can check multiple proposals in this window as necessary.

Click [OK] to display the Create Service Contract Invoice window.

In the Invoice date field, verify the date you want posted to the general ledger for this contract invoice.

In the Batch field, accept the auto-generated batch number, or enter your own unique batch number for this contract invoice batch.

To print the invoice, check the Print invoices checkbox.

In the Number of additional copies to print of each invoice field, enter the appropriate number of copies.

Click [OK] to create the invoice and add it to the Invoices/Payments tab, and print.

Payment InfoPayment Info

Complete the following information as appropriate:

Number: Automatically assigned by e-automate. You may change it as necessary.

Date: Date on which the payment is received.

Method: Method the customer used to make the payment, such as Cash, Check, Credit Card/ACH, or Wire transfer.

Note: If you select Check, the Check number and Check date fields display. If you select Credit Card/ACH, the necessary fields for credit card or ACH display. If you select Wire, the Reference number and Fee fields display.

Do ONE of the following as appropriate:

When the method is Cash, continue to Step 3.

When the method is Check, do the following:

In the Check number field, enter the check number displayed on the customer’s check.

Note: You can record letters or numbers in the Check number field.

In the Check date field, enter the date on the check.

When the method is Credit Card/ACH, do ONE of the following:

If you want to use a single use credit card or ACH, select Single use account.

Note: If your system is using the NET1 Payment Solutions credit card vault, a

warning icon displays to the right of the Single use account field. The warning indicates, "Single use account transactions do not qualify for Level 3 processing." To maintain PCI compliance, it is not possible to process the detail necessary to qualify for the Level 3 discount using a business or government purchase card that is not stored in the NET1 Payment Solutions credit card vault. For more information regarding Level 3 processing, see the Configuring Credit Card Processing Settings topic.

If you want to use an existing account, do the following:

Select Use existing account.

In the Charge account field, use the lookup to select an existing credit card or ACH account already on file.

Note: To use this option, you must already have the account in the credit card/ACH vault.

When the Method is Wire, do the following:

In the Reference number field, enter the reference number associated with the payment.

In the Fee field, enter the wire fee, if any.

In the Amount field, enter the total amount of the customer's payment.

Invoices/Payments TabInvoices/Payments Tab

To select additional invoices to which to apply the payment, do one or more of the following:

To apply this payment automatically to all invoices billed to this customer, click [Auto apply customer payment]. Invoices are selected by e-automate to which to apply the payment, beginning with the oldest invoices and continuing to apply it until the payment has been completely disbursed, or there is an unapplied amount of payment remaining.

To add invoices/credit memos to the Record Customer Payment window that were originally posted to the selected customer, do the following:

In the Invoice field, use the lookup to select an invoice/credit memo.

In the Amount field, e-automate calculates an amount to apply to the invoice or use from the credit memo. If necessary, enter a different amount as appropriate.

Click [QuickAdd] to add the invoice/credit memo to the Invoice/Payments tab.

Repeat steps a through c above to add more invoices billed or credit memos posted to the selected customer.

To add invoices and set specific details during the addition, do the following:

Click [Add] to open the Add Accounts Receivable Receipt Detail window.

To identify an invoice, select Apply to credit memo/invoice and use the lookup to select an invoice or credit memo.

Complete the following fields as appropriate:

Amount to apply: Amount of the payment to be applied to the selected invoice/credit memo.

Note: The full amount of the invoice/credit memo is typically entered but you may change it.

Terms discount amount: Discount amount to be applied to the invoice according to the terms.

Note: This is usually only applicable to invoices and not credit memos.

Reverse Sales Tax: When checked, e-automate creates a miscellaneous charge credit memo against the invoice to reverse the tax charged on the invoice.

Note: This function is used if you charged a nontaxable customer tax. This amount is posted in the current open period for the tax adjustment.

Terms discount account: Account to which the terms discount is applied.

Note: The Terms Discount account is automatically selected but you may change it.

Terms discount department: Department to which the terms discount is associated.

Accounts receivable account: Accounts receivable account to be reduced.

Note: The accounts receivable account specified in administrative options is automatically entered.

Important: Only in rare circumstances should you change the account identified in the Accounts receivable account field.

Click [OK] to add the invoice/credit memo to the list and return to the Record Customer Payment window.

Repeat steps a through e to add additional invoices/credit memos to the Record Customer Payment window.

To add an unapplied payment to the Invoices/Payments tab, do the following:

Click [Add] to open the Add Accounts Receivable Receipt Detail window.

Select the Apply to unapplied payment radio button and use the Lookup icon to select an unapplied payment.

Note: You must have an unapplied payment to use this option. When Apply to unapplied payment is selected, only the Amount to apply and the Accounts receivable account fields are available.

Complete the following fields as appropriate:

Amount to apply: Amount to be applied.

Note: The unapplied amount of the payment is typically entered but you may change it.

Accounts receivable account: Accounts receivable account to be reduced.

Note: The accounts receivable account specified in administrative options is automatically entered.

Important: Only in rare circumstances should you change the account identified in the Accounts receivable account field.

Click [OK] to add the unapplied payment to the list and return to the Record Customer Payment window.

Repeat steps a through d to add more unapplied payments.

To add invoices from other customers, do the following:

Click [Advanced add] to open the Add Customer Payment Invoices window.

Only invoices billed to the customer identified in the Customer field are displayed by e-automate. To see invoices billed to customers related to this customer, select Show only invoices billed to customer and related customers. To see all open invoices for any customer, select Show all invoices.

Use the QuickSearch to narrow your list of invoices. For information on using QuickSearch functionality, see the Using the QuickSearch topic.

Place a checkbox next to invoice(s) in which you want to add to the Record Customer Payment window.

Note: If necessary, you can reverse sales tax and clear terms discounts by right-clicking on the invoice in the Add Customer Payment Invoices window.

To record the invoice as fully paid, in the Amount to apply field, assure the amount due on the invoice is displayed. If you want to apply a partial payment on the selected invoice, in the Amount to apply field identify the amount of the payment you want to apply to the selected invoice.

Click [OK] to add the invoices checked in the Add Customer Payment Invoices window.

Note: You can add multiple invoices at a time using the Add Customer Payment Invoices window, or you can add one at a time by repeatedly visiting the Add Customer Payment Invoices window.

To make changes to the invoices, credit memos, or unapplied payments you added, do the following:

Select the invoice/credit memo or unapplied payment whose settings you want to change.

Click [Edit] to open the Edit Accounts Receivable Receipt Detail window.

Modify the following fields as appropriate.

Note: Not all fields are applicable for unapplied payments.

Amount to apply: Amount to be applied.

Note: The full amount of the invoice is automatically entered but you may change it.

Terms discount amount: Discount amount to be applied to the invoice according to the terms.

Reverse Sales Tax: When checked, e-automate creates a miscellaneous charge credit memo against the invoice to reverse the tax charged on the invoice.

Note: This function is used if you inadvertently charge a nontaxable customer tax. This amount is posted in the current open period for the tax adjustment.

Terms discount account: Account to which the terms discount is applied.

Note: The Terms Discount account is automatically selected but you may change it.

Terms discount department: Department to which the terms discount is applied.

Accounts receivable account: Accounts receivable account to be reduced.

Note: The accounts receivable account specified in administrative options is automatically entered.

Click [OK] to save your payment settings.

To remove an invoice from the Invoices/Payments tab, do the following:

On the Invoices tab, select the invoice, credit memo, or unapplied payment you want to remove.

Click [Remove] to remove.

To remove the invoice, credit memo or unapplied payment, click [Yes]. To cancel and return to the Record Customer Payment window, click [No].

Miscellaneous TabMiscellaneous Tab

Click the Miscellaneous tab to bring it forward.

Complete the following fields as appropriate:

Note: The appropriate fields are displayed based on the selected method of payment. Many of the fields may already be populated. You may change the information if needed.

Important: Only in rare circumstances should you change the accounts identified on the Miscellaneous tab.

Unapplied Accounts Receivables account: Account to which customer payments not applied to a specific invoice are posted.

Undeposited receipts account: Account into which customer payments are received.

Note: The balance in this account represents the total from payments received but not deposited.

Cash account: Cash account to which the wire transfer payment is deposited.

Fee account: Account to which the wire transfer fee is posted.

Note: This is usually an expense account.

Fee department: Department to which the fees for a wire payment are posted.

Completing the TransactionCompleting the Transaction

Click [OK] to record the payment and post it to the appropriate accounts.

Note: When applying payment to an invoice that was converted to a proposal, e-automate automatically changes the status on the contract associated with the former proposal to Active.