Service Contracts with End-Period Billing: To Bill a Period with Overage Usage

In this activity, you will learn how to process a billing period for a service contract with the end-period billing when appointments with overage items are involved.

Attention: This activity is based on the U100 dataset. If you are using another dataset, or if any system settings have been changed in U100, these changes can affect the workflow of the activity and the results of the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story

Suppose that the HM's Bakery and Cafe customer wants the service personnel at Equipment and Service Center to come to clean the juicer twice during the first billing period (January 30, 2023 through February 5, 2023): one appointment has been generated automatically from the contract schedule (on January 31, 2023), and another one will be generated on the fly by the service manager (Maia Davis). The staff member (Alberto Jimenez) will complete both appointments, and the accountant (Yona Jones) will generate an invoice for the billing period.
Note: For simplicity, in this activity, you will perform the needed actions in the system acting as a service manager.

Configuration Overview

In the U100 dataset, the following configuration tasks have been performed to prepare the system for this activity to be performed:
  • On the Enable/Disable Features (CS100000) form, the Service Management and Equipment Management features have been enabled.
  • On the Branch Locations (FS202500) form, the WEST BRIGHTON branch location has been configured.
  • On the Billing Cycles (FS206000) form, the following settings have been specified for the AP AP billing cycle:
    • Run Billing For: Appointments
    • Group Billing Documents By: Appointments

    Based on these billing cycle settings, a separate billing document is generated for each appointment; this document presents the details of each service of the appointment.

  • On the Customers (AR303000) form, the HMBAKERY (HM's Bakery and Cafe) customer has been configured. The AP AP billing cycle has been specified for a customer on the Billing tab.
  • On the Service Order Types (FS202300) form, the MRO service order type has been configured.
  • On the Non-Stock Items (IN202000) form, the CLEANING non-stock item has been configured. For this item, the Service is selected in the Type box on the General tab, and Time is selected in the Billing Rule box on the Price/Cost tab.
  • On the Equipment (FS205000) form, the FSE00006 (Commercial citrus juicer with a production rate of 1.5 liters per minute) target equipment has been defined.
  • On the Equipment Management Preferences (FS100300) form, the AR Documents option button has been selected under Generated Billing Documents, and the Automatically Update Upcoming Period check box has been selected.
  • On the Employees (EP203000) form, EP00000040 (Maia Davis) has been configured, and the Staff Member in Service Management check box has been selected on the General Info tab.
  • On the User Profile (SM203010) form, the SWEETEQUIP default branch, and WEST BRIGHTON default branch location has been specified for Maia Davis.
  • On the Employees (EP203000) form, EP00000004 (Alberto Jimenez) has been configured, and the Staff Member in Service Management check box has been selected for him, so you can assign this employee to perform services.
  • A service contract has been created according to Service Contracts: To Create a Service Contract Billed at the End of the Period.

Process Overview

In this activity, you will create an appointment (for the additional cleaning described in the story) on the Appointments (FS300200) form for a service contract with end-period billing; the appointment will include a service that exceeds the time specified in the contract for the billing period. You will then process the appointment and generate an invoice for the hour of service that exceeds the time specified in the contract.

System Preparation

Do the following:

  1. Launch the MYOB Advanced website, and sign in to a company with the U100 dataset preloaded. You should sign in as a service manager by using the davis username, and the 123 password.
  2. In the info area, in the upper-right corner of the top pane of the MYOB Advanced screen, click the Business Date menu button, and select the 1/30/2023 date. For simplicity, in this activity, you will create and process all documents in the system on this business date.
  3. On the Company and Branch Selection menu, also on the top pane of the MYOB Advanced screen, select the Service and Equipment Sales Center branch under the SweetLife Fruits & Jams company.

Step 1: Creating an Appointment for Additional Services

To create an appointment for the services that exceed those specified in the contract for a billing period, do the following:

  1. On the Appointments (FS300200) form, create a new appointment, and specify the following settings in the Summary area:
    • Service Order Type: MRO
    • Customer: HMBAKERY (HM's Bakery and Cafe)
    • Scheduled Start Date: 2/4/2023.
    • Service Contract: FCT00000001

      The Contract Period box appears with the 01/30/2022 - 02/05/2022 billing period filled in because the appointment scheduled start date is in the range of this contract billing period.

  2. On the Settings tab (Scheduled Date and Time section), in the Scheduled Start Date box, select 9:00 AM.
  3. On the Details tab, add a row, and specify the following settings in the added row:
    • Inventory ID: CLEANING
    • Target Equipment ID: FSE00006
  4. On the form toolbar, click Save.
  5. In the row for the CLEANING service on the Details tab, notice that the Service Contract Item check box is selected, indicating that this service is related to the service contract. Also notice that the Billable check box is selected.
  6. On the Staff tab, click Add Row on the table toolbar, and in the row, specify EP00000004 (Alberto Jimenez) as the Staff Member.
  7. On the form toolbar, click Save.
  8. On the Service Contracts (FS305700) form, select the contract for which you created the appointment, and on the Services Per Period tab, notice that the Scheduled Period Value is now 2 h 00 m. It means that 2 hours of services have been scheduled for the first billing period for the selected service contract. The first appointment for 1 h 00 m has been generated automatically from the contract schedule, and the second appointment for 1 h 00 m has been created by the service manager on the fly.

Step 2: Completing and Closing the Appointment Generated from the Contract Schedule

An appointment has already been generated for the first cleaning of the juicer for HM's Bakery and Cafe during the first billing period of the service contract (January 30, 2023 through February 5, 2023); this cleaning will be done at the scheduled time 1/31/2023 by Alberto Jimenez. On behalf of Alberto, you will perform the actions of this step, completing and closing this appointment. Do the following:

  1. Open the Appointment Summary (FS400100) form.
  2. In the Selection area, do the following:
    • In the Customer box, select HMBAKERY (HM's Bakery and Cafe).
    • In the Service Contract ID box, select FCT00000001.
    • In the From Scheduled Date box, select 1/30/2023.
    • In the To Scheduled Date box, select 2/5/2023.
    • Clear the Staff Member box to review appointments for all staff members.

      The form displays the appointments for the selected service contract and customer.

  3. In the Appointment Nbr. column, click the link of the appointment scheduled for 1/31/2023.

    The appointment opens on the Appointments (FS300200) form.

  4. On the Details tab, for the CLEANING service, notice that the Service Contract Item check box is selected, the Covered Quantity is set to 1.00, and the Billable Quantity is set to 0.00, indicating that this service is covered by the service contract.
  5. On the Staff tab, click Add Row, and in the row, specify EP00000004 (Alberto Jimenez) as the Staff Member.
  6. On the form toolbar, click Start.
  7. On the Settings tab, in the Actual Date and Time section, specify the start and end times to be the same as the scheduled ones. Select the Finished check box.
  8. On the form toolbar, click Complete.
  9. On the form toolbar, click Close.
  10. Close the Appointments form.
  11. On the Service Contracts (FS305700) form, select the contract which appointment you have completed, and on the Services Per Period tab, notice that the Scheduled Period Value is now 1 h 00 m. It means that 1 hour of services is now scheduled. The Remaining Period Value is 0 h 00 m, and the Used Period Value is 1 h 00 m.

Step 3: Completing and Closing the Appointment with an Overage Item

In this step, on behalf of Alberto Jimenez, you will perform the actions related to completing and closing the appointment that Maia Davis created on the fly in Step 1 of this activity. Do the following:

  1. Return to the Appointment Summary (FS400100) form, and in the Appointment Nbr. column, click the link of the appointment which you created in Step 1 (the appointment scheduled for 2/4/2023).

    The appointment opens on the Appointments (FS300200) form.

  2. On the form toolbar, click Start.
  3. On the Details tab, in the row with the CLEANING service, notice that now the Covered Quantity is set to 0.00, the Overage Quantity is set to 1.00, and the Billable Quantity is set to 1.00, indicating that the quantity of the item exceeds the quantity that is covered by the service contract. Notice that the Billable Amount is set to 85$. The system has taken this price from the Overage Unit Price box of the Services per Period tab of the Service Contracts (FS305700) form.
  4. On the Settings tab, in the Actual Date and Time section, specify the start and end times to be the same as the scheduled ones. Select the Finished check box.
  5. On the form toolbar, click Complete.
  6. On the form toolbar, click Close.
  7. On the Service Contracts form, select the contract which appointment you have completed, and on the Services Per Period tab, notice that the Used Period Value is now 2 h 00 m. It means that 2 hours of services have been used in the selected billing period.

Step 4: Generating a Billing Document for the First Billing Period

You will perform the actions of this step on behalf of an accountant. To generate a billing document for the first billing period, do the following:

  1. Open the Run Service Contract Billing (FS501300) form.
  2. In the Billing Customer box of the Selection area, select HMBAKERY (HM's Bakery and Cafe).
  3. In the Up to Date box, select 2/5/2023.
  4. In the table, select the unlabeled check box in the row with the FCT00000001 service contract.
  5. On the form toolbar, click Process.

    The system opens the Processing pop-up window, in which you can see the status of the process.

  6. After the processing has successfully completed, click the Processed tab.

    The system displays the processed record in the table of the pop-up window.

  7. Click the link in the Batch Nbr. column.

    The Service Contract Billing Batches (FS306100) form opens with the details of the batch.

  8. Click the link in the Document Nbr. column.
    The Invoices and Memos (AR301000) form opens, and you can review the generated invoice. Notice that two lines are in the invoice, as the following screenshot shows: for the service covered by the contract, and for the overage item.
    Figure 1. The invoice for the first billing period of the service contract


  9. On the form toolbar, click Release.
  10. On the Service Contracts form, select the contract. On the Billing Documents tab, review the reference number of the invoice. On the Service Per Period tab, in the Billing Period box, click the lookup icon. Review that the status of the 01/30/2023 - 02/05/2023 period is Invoiced, and the next billing period (02/06/2023 - 02/12/2023) is now active.