Maintenance Contract Billing

  • 11 September 2020
  • 8 replies
  • 383 views

Userlevel 2

When are you typically billing a maintenance contract? 

  • All upfront
  • At the beginning of each period (month, quarter, etc...)
  • At the end of the period
  • Other?

If billing at the beginning of the period, how do you manage billing of additional items/services there were not part of the original contract? 

  • Send a separate invoice for the additional items/services immediately
  • Bill the additional items/services on the next period billing
  • Other? 

8 replies

Userlevel 4
Badge

Subscribed… I just entered an idea for contract billing in advance, annually and monthly before seeing this discussion.

 

Greg

Userlevel 3
Badge +1

Many time when the maintenance contract is part of a build,  we have to follow the specs from the RFP.  The RFP is what the contract has to follow.  When the maintenance contract is not related to a construction job or an RFP from a customer,  we  usually bill at the end of the period or immediately after the maintenance is done.

All additional services are usually billed immediately after work is complete and we try to do a separate billing from the contract to prevent confusion and allows us to track it better.

 

Andrew

Userlevel 1

In our business (fire and security), We bill in multiple ways but typically prepaid at the beginning of the period monthly, quarterly, semi-annually and annually. As well, we bill “as performed” immediately on completion at any time during the period.   When additional services are performed outside the contract, it is billed separately.

If you are working on contracts, also add the RENEWAL feature to the SERVICE CONTRACTS just like the CUSTOMER contracts. As well, allow quoting and converting from Opportunities to Sales quotes to Service Contracts. 

 

Userlevel 3
Badge

Mostly billed up front.  It is rare in the Construction industries with maintenance contracts to bill in arrears.  Generally, the billing is in advance or when the service is performed.

Userlevel 2
Badge

Was there any progress on this question? I mean,  is there any way in Acumatica where Service contracts can be pre-billed based on a schedule, example quarter in Advance?

The only settings I am seeing on the contract, related configuration and related documentation mention only Billing at end of period or on completion. However many contracts in our country are pre-billed, meaning the client is billed in Advance.

If Acumatica does not handle this requirement, can you suggest any workarounds from your experience?

Userlevel 3
Badge

What version are you on?  The ability to prebill a co tract was added in 2021 R2 or 2022R1. 

Userlevel 2
Badge

Thanks for this. Was testing this on 2021R1, so will check later releases as this will solve a big headache :)

Userlevel 2
Badge

Just to confirm that I tested this function on 2022R1 and it works as per requirement. Thanks to all

Reply


About Acumatica ERP system
Acumatica Cloud ERP provides the best business management solution for transforming your company to thrive in the new digital economy. Built on a future-proof platform with open architecture for rapid integrations, scalability, and ease of use, Acumatica delivers unparalleled value to small and midmarket organizations. Connected Business. Delivered.
© 2008 — 2024  Acumatica, Inc. All rights reserved