Preventive Maintenance Agreements

Automated Invoicing: PM Billing This presentation outlines the billing process for Preventive Maintenance Agreements that are billed on a scheduled basis from the Client Site Billing tab. Service Work Orders and PM Work Orders that are billed when the work has been completed are discussed in the Service Billing presentation. The following topics are discussed: checking basic records, entering the PM Billing Schedule, computing PM invoices. Note that progressive (contract) billing, and pay-when-paid processing are also covered in separate documents. Your records must be set up correctly for invoicing to run properly. For PM Billing, the Client Site PM Billing tab, Client Site Equipment, Technician, and Job related records are of particular importance. Invoicing also depends upon the having correct Job Invoicing and Billing Worksheets included in your database. A variety of invoicing and reporting formats are available. Be sure to discuss this with your support representative if necessary.

Invoicing Cycle: PM Billing 1 Start Rev. earned as work performed? Enter Scheduled billings in Billing Tab of Client Site Record No Yes Service Billing Presentation Generate PM Invoices - Invoice # is loaded in PM Billing Tab of Client Site Create PM Work Orders, apply costs If Revenue is Amortized, Generate PM Billing must be run on a monthly basis to make the GL entries, regardless of whether or not PM's are billed. Is Revenue Amortized? Yes No A or B

Records Relating to PM’s Client Site PM Billing Schedule Billing Date Amount Billed and Amount Earned (if amortizing) GL Accounts: If Amortizing the Amount Earned on a billing schedule. 1st GL Account is the Income (sales or revenue) account where the Amount Earned will post. It will be credited with the Amount Earned when Start Create PM Invoice is run. 2nd GL Account is the Liability (unearned income) account where the Amount Billed will post. It is credited with the Amount Billed when PM invoices are generated, printed, and posted. Amortized amounts will post with the ending date of the corresponding accounting period. If Not Amortizing the Amount Earned on a billing schedule. 1st GL Account is the Income (sales or revenue) account where the Amount Billed will post. It is credited with the Amount Billed when PM invoices are printed and posted. Invoice Description PM Job, Cost Code, Billing Item Invoice Id (display only)

PM Related Records: Client Site - Service Tab The service agreement information appears on the Service Tab.

PM Related Records Client Site Equipment Main Tab Service Tab Service Parts List used in conjunction with PM Master Scheduler/Master Contract PM Schedule Tab Maintenance Schedule for PM Agreements Scheduled Inspection Date PM Job, Cost Code, Billing Item (for costing if billed on a schedule) This information defaults to the PM Work Order. If PM's are billed on a schedule, time and materials entered on PM Work Orders will be used for costing only, unless extras are allowed. Service Task and Service Parts Lists The OK to Renew field must be checked if you intend to run the Contract Renewal function. WO Id: this display only field will be filled in by the system when you generate the PM Work Order for this scheduled inspection.

Client Site Equipment: Main and PM Schedule Tabs Equipment must be Under Contract – and not Inactive – in order for a PM Work Order to be generated. The PM Schedule tab is used to generate PM Work Orders. Applicable information from the Master Contract (PM Master Schedule) will be written to it during this process.

Client Site Equipment: Service Tab The Service Parts List on the Service tab is used in conjunction with the PM Master Scheduler/Master Contract function.

PM Related Records Job Record Collects billing and costing information for PM Agreements. Controls the billing address Specifies which Client will be assigned the AR Cost Code Default Router of Income and Expenses to Entities & Income Accounts Internal/Estimating Uses Code for Cost Centers Billing Item Defines Billing Properties for PM’s Invoice Format Settings

Typical PM Job Record: Main Tab

Typical PM Job Record: Invoicing Tab

Typical PM Job Record: Financial Tab

Typical PM Billing Item

Typical PM Cost Code If you check the Default for AR Post, this Cost Code will be referenced when your PM Invoice is posted to AR.

Generating PM Invoices and Work Orders The Work Order Folders tab lets you access the Generate PM Work Orders and Generate PM Invoices functions. PM Invoices should be generated before their corresponding Work Orders.

Generate PM Billing This function enables you to select which PM Invoices to generate. If you are amortizing your PM Billings, it will also generate the necessary GL transactions for the date defined by the Start and End Date. The effective date of the amortization entry will be the End Date. Notice that you must specify an Accounting Period Id to run the function.

Generating PM Invoices Checklist The PM Billing Checklist enables you to select which PM Invoices will be generated. Only those lines with the Ok box checked will have Invoices created.

Create PM Work Orders This function enables you to select (by Date, Client Site, and Branch) which PM Work Orders to Generate. Note: In previous versions, the Start Date and End Date were required to be within the same calendar year. This has been enhanced so that dates may cross a calendar year (End Date must be no more than 1 year after Start Date).

Create PM Work Orders Checklist The checklist enables you to confirm the Work Orders to be created. If the ‘Do’ box is checked, the Work Order will be created. If it is cleared, the Work Order will not be created.

Print PM Invoice- Service Invoices Starter Function

Print PM Invoices From the invoice preview, click Print. This will prompt a confirmation message, asking if the invoice is ready to be posted. Click Yes.

Post Invoices

Starter Function Renew Service Contracts (or Master Contracts) The function enables you to extend the PM Schedule (in the Client Site Equipment record) and the Billing Schedule (in the Client Site record) by one year. All lines in the schedules marked as eligible for renewal will be copied to the following year. These new lines will be marked as eligible for renewal; the lines that they were copied from will no longer be eligible. The Escalation Percent enables you to automatically mark up the billing amount.

Renew Service Contract Checklist Notice that the Renew Service Contract checklist enables you to confirm the renewals and adjust the new Billing amount if needed. Note that in this case, the new value for the Billing Schedule will be 5% higher than the older value.

PM Related Reports Report PM Agreement Summary This report gives an overview of the PM job, shows billings to date, inspections/costs to date, budgeted costs & revenue, and actual costs & revenue. Drill-Down Report Client Profitability An account manager would typically run this report to determine the profitability of a client, site by site. Additionally because it is a drill down report the account manager can drill down to lower levels of detail. Drill-Down Report Service Profitability by Client Site This report is similar to the Client Profitability report above, but starting at the client site level. Report Service History This report enables an account manager to review the service history at a particular site. The report shows the service call history for a client site. Information includes; date, work order id, technician, equipment.

PM Agreement Frequently Asked Questions Vocabulary Time of Service PM: Client is charged a predetermined amount at the time the service is performed. Scheduled PM Agreement: Client is billed on a schedule. Can I reverse a scheduled PM invoice/accrual? Yes, make a new negative line on the original PM Billing schedule. Do not mark this Ok to Renew. How does the system Amortize my scheduled billings? On the Billing Schedule Tab of the Client Site, enter the Amount Earned and its related information. When the function Generate PM Invoices is executed a GL transaction will be created for the amortized amount for the specified date period. How do I Amortize on a monthly basis even if I do not bill monthly? The function Generate PM Invoices should be run monthly even if no invoices are being produced. It is the Generate PM Invoice function that will trigger the amortization process.

PM Agreement Frequently Asked Questions If I do scheduled PM billing, how do I schedule the work? The PM work schedule is entered on the PM Schedule Tab of the Client Site Equipment. PM schedules are assigned to Client Site Equipment. If I have many pieces of equipment at a site do I have to enter a schedule for each one? This option is available. Some people choose to create a pseudo piece of equipment for a site called PM and attach the schedule to this equipment. I went into Record Billing Adjustments and now I cannot generate an invoice. Entering the application Record Billing Adjustments will automatically place the job in a hold status. Make sure that you select Invoice Ready and save the changes.