Service Contract¶

Service contracts can be found in two types of files within the database.

Service Contract Quote is used as a document for the customer to approve. Once the quote has been approved by the customer, then by using the button Make Contract the actual service contract is created. The quote can keep on being modified according to the requirements of the customer and various "Quote Types" can be created. The use of these cards is described in standard NAV manuals. Because the cards have similar contents as the following type of cards, it will not be described in any further detail.

Service Contract is a card, which is created from a Service Contract Quote using the button Make Contract. There are further options of creating a contract from a "Service Item", "Sales Order" or by creating a new contract card by manually entering all information.

Contract Templates¶

To simplify creating new contract cards, the feature Contract Templates has been prepared.

The template card includes only the most essential information that is common to a whole group of contracts. The Invoice tab consists of standard fields not used in the module Smart Service.

Using this card is the same as when defining Contract Functions and will be described in a separate chapter.

Another option is "Splitting", which is described in a separate manual.

The Contract button also includes options for setting up dimensions and contract discounts.

When creating a new contract, after having entered the contract number the system offers to use the "Service Contract Template".

Copying a Contract¶

Another tool that may speed up the process of creating a new contract is copying an already existing contract to a new one. The feature can be used to create a group of contracts having similar characteristics or create a continuation of a contract that has been closed. To start copying a contract, use the "Function" button on the contract and select "Copy document", which is a modification of the standard Business Central functionality.

Header and Lines of the Service Contract Card¶

The set-up of a service contract reflects an agreement between the company and its customer. The particulars of a contract are defined onthe header or the lines of the contract.

To make the process of creating a contract card easier, the feature of templates has been prepared; they may also be used when creating contracts with a wizard. Fields that are not filled in automatically must be entered manually; a contract is valid only if all the relevant fields have been filled in (see Contract Templates).

Contract Class¶

You can select from three basic types of contracts:

• Contract - a common contract linked to one "Service Item";

• Sub-Contract - this option cannot be selected manually; it is entered automatically if the contract has been allocated as being part of an "Aggregate" contract. The contract is first created as the "Contract" type;

• Aggregate - this is a contract that is made up of several contracts of the "Sub-Contract" type and represents their main contract. One of the advantages of an "Aggregate" contract is that the automatic invoicing batch can be run in one bulk for all the linked contracts.

The attaching and detaching of sub-contracts is done by selecting the function Attach/Detach Subcontracts on the Aggregate contract. Contracts that have been attached are shown in bold. Clicking on Attach or Detach buttons performs the actual function. Single lines (one contract) may be attached/detached; to attach/detach a group of contracts the relevant lines should be highlighted.

The Currency field defines the currency used: "Currency Code (Prices)": the currency used in the set-up of all contract rules; "Invoice Currency Code": the currency of the automatically generated invoice.

Contract Functions¶

Contract Functions define elementary types of services provided and charged in connection with a contract. The Functions set-up is accessed from the contract card under Contract Functions Tab

A Function has many parameters which must be set up, therefore there is no standard table with lines to be filled in. Instead, a card is displayed by selecting the Contract Function Sub form button and selecting Card under the Contr. function tab.

Tabs on the Card¶

General Tab¶

• Function Code - denotes the type of service; it is selected from a globally defined table of functions.

• Blocked - prevents creating invoice lines for this type of service.

• Unit of Measure - various types of units of measure are set up, from base UoM to service, sales, and purchase.

• The value Qty Base Rounding Precision defines the rounding precision of the base UoM; it is automatically filled in from a pre-defined "Service Functions" table.

Meter Tab¶

The set-up fields on this tab are used to define the relationship of the Meter reading function to Item, Resource, or Service Item. The latter type is likely to be used the most. After that, the Source No. field is filled in - the specific card of the specific source type. Meter Code is an existing Meter on the equipment. Unit of Measure Coefficient is used to calculate units of the Meter into units of the function.

Pre-Sale Tab¶

The set-up fields on this tab are connected to the automatic generation of Pre-Sale invoices. The Bill-to address to be entered on the generated invoice can be selected to be different from the default. On the invoice line the system generates G/L Account, Resource, or Item as the Pre-Sale-to Type.

The unit of measure for invoice lines, and the calculation formula for a unit if necessary, should be set up.

Pre-Sale Function Group and Back Sale Function Group are described in a separate chapter.

Back-Sale Tab¶

This tab consists of similar set-up fields as the tab "Pre-Sale". In case some of the options are disabled, then they are part of a function connected to Pool contracts and the rules applied are taken from the "Pool" function.

The Back-Sale Calc.Method field has the following options:

• Package - this is a reserved function.

• Simple - if several prices have been defined depending on the number of units consumed, the price which is defined for the specific range of the number of units is taken.

• Cascading - several price ranges should be defined depending on the number of units consumed, gradually the price is applied for each range up to the range into which the number of units consumed falls.

  Example: Consumption is 1000 units.

  Units	Price		Simple	Cascade
  0 .. 99	1.00		x	99,00
  100 .. 499	0.99		x	396,00
  500 .. 999	0.98		x	490,00
  1000 ..	0.95		950	0,95
  		SUM	950	985,95

The Back Sale Counting Method field has the following options:

• Fixed - the price is taken from the appropriate range without considering the length of the calculated period.

  In contrast, if the following option is selected, the ranges consider the period length.

• Flexible - the ranges defined consider the length of the basic period. For example, unless there is a Back-Sale for several periods, the number of units in each range is multiplied by the period length in comparison to the basic calendar. In case of a monthly calendar and a Back-Sale for a quarter, all Back-Sale rules are multiplied by three. If in the case of a longer period we need to eliminate for example the months of vacancies, for the system to calculate the periods correctly the invoicing type in the calendar must be set to Ignore.

  An example of the same table as above, but with ranges calculated to cover three periods:

  Units	Price
  0 .. 299	1.00
  300 ..1499	0.99
  1500..2999	0.98
  3000 ..	0.95

It is also possible to define two conditions for generating functions on a sales invoice:

Back-Sale Not Invoice Amount - prevents generating an invoice line if the amount is lower than the amount given.

Back-Sale Minimal Amount - if the amount generated is lower than the amount given, the amount on the invoice line is the one stated in this field.

Calendar Tab¶

For each function, it is necessary to define a dedicated invoicing calendar. The "Calendar Type" then limits the choice from calendar types available according to the length of the shortest period. "Calendar Invoice Group" is another field that can be used for filtering of data displayed. The calendar period is defined by the fields "Calendar Starting Date" and "Calendar Expiration Date".

Aggregation Tab¶

If a function of a sub-contract needs to be linked to its Pool contract, it is set-up on this tab.

By distinguishing the use of functions, the types are:

• "Pool Function" is used to define a function that is calculated as the sum of all parts of a Pool function; "Back-Sale" prices are then applied to the sum calculated. The "Pre-Sale" prices are applied according to sub-contracts.

• Other functions linked to an aggregate contract, but not being the Pool type, are generated on a common document, but they do not influence each other in the price calculation.

• Various options are available by clicking on a button on the function card. Apart from common functionalities such as displaying a list, statistics, etc., important set-ups are given in the "Sales" and "Actions" buttons.

Pre-Sale Function Group and Back Sale Function Group¶

In both cases the method to be used is similar. In the set-up table, each contract function that contains a link to the same "Function Group" is checked on generated documents, whether its relevant rule has been applied. Crucial here is the "Action Type"; if there is no value (the field is empty), the lines of the document are to be displayed; if the value is "Paid-To", the total amount for a function with the same code is topped up to a defined minimum value using a "Sale-to Type" (G/L Account or Resource). This minimal value is entered in the table using the "Group" button and selecting "Minimal Amounts".

Calendars¶

In the definition of a function, it is also necessary to provide a list of invoicing periods.

Generally, we define a calendar template and then, using the template, the actual invoicing calendar. To create a calendar template, we can use a general template. The basic functionality is shown in the following diagrams:

• The General tab shows the link to the function and contract, and it shows the contract starting and ending dates (if they were given).

• The Calendar tab is used to define the calendar type (its only purpose is that it is used for filtering) or possibly assign the given calendar a specific "Calendar Invoice Group", which again may be used to set a filter when starting the invoice-generating batch.

• The Options tab sets the period length, for which the lines of the calendar are displayed.

  

Calendar - Template tab¶

To define the calendars, it is first necessary to prepare a calendar template.

The simplest method to create a template is to use an already existing template and copy it into a form. To do this click the "Template" button, "Copy calendar template". From the parameters set it is then only necessary to change the "Calendar Source Template" as a filter for the templates used.

The field Shift of Periods moves the given template by a defined number of periods. For example, a monthly calendar should only be moved by up to 11 months compared to the existing template.

Another step may be a manual modification of the function template, if necessary. An editing form is used for this by clicking the "Template" button and selecting "Edit Lines".

The form opens in a different graphical design and it enables writing into existing lines of the calendar template. Each line should define an activity that is to be carried out:

• Pre-Sale: Pre-Sale invoices only are generated for the period.

• Pre-Sale: Pre-Paid invoices have been generated in the previous month, which is denoted as Pre-Paid - see period 4. in the picture (April) - generates invoices for a fixed fee for periods 4. to 6.

• Back-Sale: Back-Sale invoices only are generated for the period.

• Both: both "Pre-Sale" and "Back-Sale" invoices are generated for the period.

• Both: the two types will run at the same time.

• Ignore: no document is generated for the period, nor is it included in the length of the calculated period.

  

Calendar - Invoicing tab¶

The form shows similar information as the template, but the core information is given on the lines that define how actual invoice-generating is done, at the same time defining the actual link to the period including the year.

If at least one document has been generated for a given period, it can be displayed in the "Last Document Number" column.

Filling in the calendar lines is done similarly as for a template, by selecting the option Copy Lines from Template under the Invoicing button.

A copied calendar can further be edited - i.e., change the invoicing requirements for a given period. Select the option Edit Lines under the Invoicing button for this.

Other options in the Invoicing menu are: Last Document, which displays a list of generated documents (both posted and unposted) for a given calendar line; Function Posted Sales Lines displays generated Function ledger entries.

Calendar - Action button¶

To check the setup of parameters, use the function "Get Test Function Lines", which tests the invoicing process for a given calendar line. The resulting functions to be generated are displayed in a table together with the information, whether the process would be run without any errors. If any warnings or errors exist, they are displayed in the "Messages" tab.

Similarly, Print Test Invoice can be generated, or an actual sales invoice can be generated only for a given calendar, function, or contract by selecting "Generate Invoice".

Prices¶

Apart from setting up the calendars, it is also necessary to set the pricing rules for each function. To access the form "Prices", select the option "Prices" under the "Sales" button in the Functions table. The prices must be set up separately for "Pre-Sale" and for"Back-Sale" invoices. At least one of the rules must be set up, based on the type of contract. For example, if only the function for rent has been defined, only the part "Pre-Sale" needs to be filed in.

The table "Prices" can define several pricelists that are all valid for a single function. The following example shows two rules "Code" A and B, which are both valid at the same time. Price rule A is valid until it is ended by the "Ending Date", when it is succeeded by a price rule with a new "Starting Date". Rule B in the example is then valid with no limitations (if the contract is valid).

According to the Type set, the following price rules for Pre-Sale are available:

• Non-Portable: Units paid in advance are valid for one period.

• Portable to Next Back-Sale: Unused prepaid units can be carried over only to the next period.

• Unexpirable Portable: Unused prepaid units can be carried over to any of future periods until they are used up.

• Recurring: Unused units are credited.

  

Another parameter that must be set up is the number of units included in the price rule - Quantity (Base). Unit Price is a unit price that is multiplied by "Quantity (Base)" to give the value Amount, which will be shown on the invoice line.

It is also possible to enter only the value for Amount, which represents a fixed fee that does not include any units in the fixed fee - the system enters the values Unit Price and Amount in the relevant line.

On the Back-Sale tab there are similar fields for basic set-ups, but only ones concerning amounts and periods. The basic calendar consists of two tables. The first table describes price rules for cases when the customer exceeds consumption by, say, exceeding a certain fixed fee. The second table is used only if rules need to be set for crediting unused units that are not covered by a fixed fee (and on the condition that a Pre-Sale table has been set as Recurring). Units of this type can occur in cases of a wrong reading of Meter status for a contract that does not have a defined fixed fee.

Similarly, as we could have set up new rules for a Pre-Sale table, it is also possible in this table to change a value for the same rule (denoted with the same Minimum Quantity (Base)") to be valid from a Starting Date and expiring at an "Ending Date".

In the example below, when a fixed fee has not been reached, the Back-Sale rule will credit a customer 0,1 for each unused unit (starting 1.1.2007); in case of exceeding a fixed fee, the customer is charged according to the actual number of units as follows:

This rule must be calculated using the Calc. Method, Simple or Cascade Method. Both the methods have already been described.

Minimal Amounts¶

Another option accessible from the Sales button in the Function set-up is Minimal Amounts.

The tab Fixed is used to set up Fix value to be invoiced in the back-sale invoice. It is without connection to meter reading.

The tab Not Invoice-To prevents generating invoice lines if the line amount is lower than a given amount. Similarly, to defining prices, the validity can be limited to a Starting Date and Ending Date.

The tab Pad-To is used to set-up a minimal amount to be invoiced in case a fixed amount is not reached. When this option is selected, an invoice line will always be non-zero.

Contract Discounts¶

Standard Business Central allows the definition of Contract Discounts for Service Orders. In the definition table was expanded option field Type with new option.

The possible options are:

• Service Item Group

• Resource Group

• Cost

• Item Discount Group

New option Item Discount Group defines a similar group of Items with the same Item discount Group defined in the Item card.

Items added to Service Order Worksheet with connection to Service Contract apply defined discount if there is not a better-defined discount or if discount has not been disabled.

Service Ledger Entries contains new field Contr./Serv. Discount which allows the filtering of posted entries to defined Contract Discount.