We are starting to use service contracts (IFS 8) and some of our customers pay for one year in advance. Is there a way to have the service contract set up to show monthly the consumption of the prepaid dollars and then start charging when the year is used up?
Answer
Depleting Prepaid Service Contract dollars
+5Best answer by paul harland
We set this up for a customer once by creating a custom field on the service contract line called “bank of dollars”. This would hold the initial value.
Then you have calculated fields next to it that display “Consumed dollars” and “Remaining dollars”. Consumed dollars is a sum of the transaction revenue on work orders linked to the service line.
Remaining = Bank - Consumed.
+24We set this up for a customer once by creating a custom field on the service contract line called “bank of dollars”. This would hold the initial value.
Then you have calculated fields next to it that display “Consumed dollars” and “Remaining dollars”. Consumed dollars is a sum of the transaction revenue on work orders linked to the service line.
Remaining = Bank - Consumed.
We are on Apps 9 but in service contract on the invoice parameters there is a check box for period allocation. we used that to automatically take the service contract and push revenue recognition by 12 24 or 36 months. Once the order invoices IFS posts the entire amount into the accounts for revenue and cost. it then immediately moves everything but the first month's worth into an accrual account. And then it also automatically allocates all the revenue and cost from that accrual account into the correct accounts for the upcoming periods. the bad news is you need to have the accounting periods open for however long you are going into the future, good news is you can see your Revenue you will recognize at any time in the future
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