Service Contracts: To Create a Service Contract Billed at the End of the Period

In this activity, you will learn how to create a service contract that is billed at the end of each billing period for the services and inventory items (if any) specified in the contract plus for an overage number of services (or inventory items) that has been added to the service document (appointment or service order) during the billing period but was not covered by the service contract. You will also learn how to create a schedule for this service contract, and to generate appointments from the schedule.

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 has agreed to enter into a contract with Equipment and Service Center one hour of cleaning a juicer every week. The contract states that one hour of service is paid every week at a price of $70; for overage cleaning services (that can occasionally be required), a price of $85 per hour should be paid. The customer will pay at the end of each week according to the prices that are defined in the contract. The appointment schedule needs to be specified for the contract, and appointment for the next week should be generated. You will perform the needed actions in the system, acting as service manager Maia Davis.

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 Service Order Types (FS202300) form, the MRO service order type has been configured to generate sales orders to bill customers for provided services. That is, the Sales Orders option has been selected under Generated Billing Documents in the Billing Settings section. Also in this section, the IN sales order type has been selected as the Order Type for Invoice so that the processing of sales orders does not require shipments.
  • 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 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 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.

Process Overview

You will create a service contract with the End-Period Plus billing type on the Service Contracts (FS305700) form. In the service contract, you will specify the services to be provided during each billing period, as well as the prices for the items covered by the contract and for the overage items. Then on the Service Contract Schedules (FS305100) form, you will create a contract schedule that includes the services to be provided in appointments. Finally, you will generate an appointment according to the schedule by using the Generate from Service Contracts (FS500300) form.

System Preparation

To prepare the system for this activity to be performed, do the following:

  1. Launch the MYOB Acumatica 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 Acumatica screen, click the Business Date menu button, and select the 1/30/2024 date. For simplicity, in this activity, you will create and process all documents in the system on this business date.

Step 1: Creating the Service Contract with End-Period Billing

To create the service contract with end-period billing for HM's Bakery and Cafe, do the following:

  1. Open the Service Contracts (FS305700) form.
  2. On the form toolbar, click Add New Record, and specify the following settings in the Summary area:
    • Customer: HMBAKERY (HM's Bakery and Cafe)
    • Description: Cleaning Contract
  3. On the Summary tab, in the Contract Settings section, specify the following settings for the contract:
    • Start Date: 1/30/2024
    • Expiration Type: Expiring
    • Duration: 1 Year
    • Schedule Generation Type: Appointments
  4. In the Billing Type box of the Billing Settings section, select End-Period Plus.
  5. In the Period box of the Billing Type Settings section, select Week.
  6. On the form toolbar, click Save.
  7. On the Services per Period tab, add a row, and specify the following settings in the added row:
    • Inventory ID: CLEANING
    • Target Equipment ID: FS00006
    • Value: 1h 00m
    • Recurring Item Price: 70
    • Overage Item Price: 85
  8. On the form toolbar, click Save.
  9. On the More menu (under Processing), click Activate.

    The first billing period (1/30/2024 - 02/05/2024) has been activated during contract activation, as the following screenshot shows.

Figure 1. The service contract


Now you can schedule appointments, or create appointments on the fly.

Step 2: Creating a Contract Schedule and Generating Appointments from the Schedule

Now you will add a schedule for the service contract and generate the first two appointments of that schedule. Do the following:

  1. While you are still viewing the service contract on the Service Contracts (FS305700) form, on the Schedules tab, click Add Schedule.

    The Service Contract Schedules (FS305100) form opens.

  2. In the Summary area, do the following:
    • In the Service Order Type box, ensure MRO is selected.
    • In the Scheduled Start Time box, select 9:00 AM.
  3. On the Details tab, add a row and specify the following settings in the row:
    • Line Type: Service
    • Inventory ID: CLEANING
    • Target Equipment ID: FSE00006
  4. On the Recurrence tab, under Frequency Settings, select Weekly, and do the following in the Weekly Settings section:
    • Specify Every 1 Weeks.
    • Select the Monday check box.
    • Leave the check boxes cleared for the remaining days of the week.
  5. On the form toolbar, click Save.
  6. On the form toolbar, click Generate from Service Contracts.

    The Generate from Service Contracts (FS500300) form opens.

  7. In the Generate Up To box of the Summary area, select 2/6/2024.
  8. In the table, select the unlabeled check box in the row with the schedule you have created in the previous step, and on the form toolbar, click Process.

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

  9. After the processing has successfully completed (see the following screenshot), in the Processing pop-up window, click Close.
    Figure 2. The Processing pop-up window


  10. On the Service Contracts (FS305700) form, 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 has been scheduled for the selected billing period.

Step 3: Reviewing Generated Appointments

Review appointments generated from the schedule on the previous step in the following way:

  1. Open the Appointment Summary (FS400100) form.
  2. In the Customer box of the Selection area, select HMBAKERY (HM's Bakery and Cafe).
  3. In the Service Contract ID box, select the service contract that you have created in Step 1.
  4. In the From Scheduled Date box, select 1/30/2024.
  5. In the To Scheduled Date box, select 2/6/2024.
  6. Clear the Staff Member box to review appointments for all staff members.
    The form displays an appointment generated from the service contract. Notice, the appointment generated for the active billing period has the Not Started status (see the following screenshot).
    Figure 3. The appointments generated from contract schedule