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Hi 

We are a Apps 10 user and outsource our IT desktop support to a third party. 

The third party sends a monthly invoice that can vary by $ amount due to the service supplied or the equipment provided.

To complicate the matter more, the equipment needs to go on to the Object Balance register and the service is expensed.. They may be on the same invoice.  

The $ and equipment can be estimated, but the amount of service provided or equipment delivered is not known at the start of the month.

Our Head of  IT is becoming exasperated by creating a Purchase Order each month to cater the varying $ amounts and services delivered.

My question to the community is what is the best way to manage such a contract in IFS (Apps10)?

I was thinking of breaking down his budget, in a Purchase Order No-Part Order Lines, and he can incrementally receipt each line over the year.  The other idea was treating the contract as a sub-contract.  But they both come with relative downsides.

Thank you and have a great weekend.

For context the IT chap in question is not 100% sold on the benefits of IFS (to say the least) and  is not backward in coming forward with his opinions on the aforementioned.  I would like for him to become an IFS champion, so if there are any knowledgeable IFS employees reading this post your assistance would be greatly appreciated.

Hello @DW_Sydney 

Is the service fee per hour? Maybe you can consider using Sub Contact module rather than PO module.

You can create a sub contract for total value of the contract with the supplier. You can see a sample below. Unit of measure can be up to you.

 

Once you have sub contract agreement ready. You can create valuation every month for the total value of the service. You can follow up total valuation amount (total consumed contract value) etc. See sample valuation below. Only 45h work is completed therefore 45 hours x 280 = 12.600 Total valuation. This is also total invoice value.

 

 

Every month you can create a valuation from sub contract automatically and enter quantity of the service. Then match the valuation with supplier invoice.

 

If you need any support contact me in chat and we can setup your system

 

Hope this helps

Thank you. for the response .  I understand the sub-contract would need a project to be created or can it stand alone?

Hello @DW_Sydney 

Not necessary to have a project. It can be used without project. when you create a new sub contract, system may set Activity Required field by default TRUE. Uncheck this and then enter item details.

 

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