Contract Billing: To Bill a Support Contract by Case Usage

In the following implementation activity, you will learn how to bill support contract by case usage.

Story

Suppose that the SweetLife Fruits & Jams company, in addition to deploying juicers, also specializes in providing maintenance. The Unifruit LLC customer previously purchased juicers and now needs to enter into a maintenance support contract. On 3/8/2023, the support contract was signed by both parties.

According to the terms of the contract, it has the Expiring status, and the contract span is three months. On 3/10/2023, the service under the contract was provided by one regular specialist for four hours for a total sum of $480. This service was reflected in the system in a separate case. The service of maintenance specialists costs $120 per hour, and the price is not dependent on the skills and position of the employee performing the service. Now you have the released case for the support contract in the system. The billing of the contract will be performed monthly and on a per-case basis.

Acting as an accountant, on 4/8/2023, you will bill support contract by case usage.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

Process Overview

In this activity, on the Customer Contracts (CT301000) form, you will bill a contract by case usage. Then on the Invoices and Memos (AR301000) form, you will release the resulting invoice.

System Preparation

To prepare to perform the instructions of this activity, do the following:

1. Launch the MYOB Advanced website, and sign in to a company with the U100 dataset preloaded. To sign in as an accountant, use the following credentials:
   • Username: johnson
   • Password: 123
2. In the info area, in the upper-right corner of the top pane of the MYOB Advanced screen, make sure that the business date in your system is set to 4/8/2023. For simplicity, in this activity, you will create and process all documents in the system on this business date.
3. As a prerequisite to this activity, complete Contract Usage: To Create Case Usage for a Support Contract activity to create a case that you will use to bill a contract by case usage.

Step 1: Billing the Contract Usage

To initiate contract billing, do the following:

1. On the Customer Contracts (CT301000) form, open the contract with description Unifruit - Regular support services. Notice that on the Summary tab, the Next Billing Date is set to 4/8/2023.
2. On the form toolbar, click Run Contract Billing.

   When the billing operation has completed successfully, the Next Billing Date is set to 5/8/2023, and the system has generated the invoice in the amount of $480 for the billed contract usage. You can see the invoice on the AR History tab.

Step 2: Releasing the Invoice

Do the following to release the invoice for the support contract:

1. While you are still viewing the contract on the Customer Contracts (CT301000) form, on the AR History tab, click the Reference Nbr. link in the only row to open the invoice on the Invoices and Memos (AR301000) form. Review the settings of the invoice (see the following screenshot).

   
   
   

   Note: An invoice issued at contract billing includes all the contract's unbilled usage whose dates precede the billing date.
2. To see the case to which the invoice relates, on the Details tab, click the Column Configuration button, which is located in the leftmost column header. The Column Configuration dialog box opens.
3. In the Available Columns list, click Case ID, and click the Add Column button to move the name of the column to the Selected Columns list.
4. Click OK, which closes the Column Configuration dialog box. Notice that the Case ID column is displayed on the tab. If you cannot see the columns, use the horizontal scroll bar in the footer of the table.
5. On the form toolbar, click Release. The system generates and releases a batch in the general ledger. You can see the batch on the Financial tab of the Invoices and Memos form (Link to GL section).
6. On the Customer Contracts (CT301000) form, open the contract with description Unifruit - Regular support services. Press Esc to refresh the form, and review the contract balance ($480), which is calculated as the sum of the balances of open invoices associated with the contract.
7. Open the AR History tab on the Customer Contracts (CT301000) form, and note that the invoice in the amount of $480 now has the Open status.

You have billed the support contract by case and released the invoice.