Customers are billed up-front for the full amount of the service agreement contract, or billed monthly on an on-going basis. It is recommended that a reserve account be set-up to record amounts paid by the customer and the offsetting amounts from the work orders. It is recommended that the account have an application type of "History Only".
The General Invoicing module can be used to invoice the customer. It can be a one-time billing for an up-front contract or a repetitive billing for a monthly bill. The accounting should be as follows:
DR A/R, Cash, etc.
CR SAM reserve account.
The screen would be keyed as follows:
If repetitive billing is required, the Frequency tab is used:
This puts a credit balance in the reserve account either for the full amount up-front or periodically.
The Service Agreements are closed to the reserve account in order to post to an offsetting debit. The remaining balance in the account are a gain/loss on what was billed vs. what would have been billed without a contract.
Revision: 2025.01