Managed Services Contract

Business Case Summary

Under a Managed Services Contract, the repair shop will perform repair services at the request of consumers, businesses or organizations and will charge fees to the business or organization designated on the contract.  In some cases the contract will require advance payment and in other cases the contract will offer NET payment terms.

Record Advance Payment (Optional)

As advance payments are received, they will be credited to the Customer's or Billing Agent's Deposit Account, determined as the party who will be responsible for payment.  A Customer's Deposit Account will be used to pay for repairs recorded on tickets under that Customer account only.  A Billing Agent's Deposit Account will be used to pay for repairs recorded on tickets under any Customer account associated with that Billing Agent.

Track Repair Contact and Billing Contact

Repair services provided throughout the contract term will be tracked using Repair Tickets in RepairQ.  Each Repair Ticket will capture information about the Customer, one or more devices, and optionally a Billing Agent.  Under a managed services contract, the Customer will be the person with whom the repair shop will communicate about the repair and the Billing Agent will be the person with whom the repair shop will communicate about any charges due in association with the repair service.

Generate Invoice (Optional)

Invoices will be generated on a periodic basis for all tickets associated with the Customer or Billing Agent that are Waiting For Payment at the time of invoicing.  The invoices will optionally be emailed to the Customer or Billing Agent who is responsible for payment.

Apply Payment

If the Customer's or Billing Agent's Deposit Account has a credit balance, a debit will be issued against the Deposit Account and applied as a payment on the Invoice.  Otherwise, whenever a payment is received on NET terms, it will be applied to the Invoice.  Any over-payment will be recorded as a credit to the Customer's or Billing Agent's Deposit Account to be applied to a future Ticket or Invoice.  Under-payment will be handled by leaving the Invoice open for additional payment or by marking down (i.e. writing off) the remainder.  Tickets that have been paid in full through the invoicing system will be closed out at the time the payment is recorded.

Step-By-Step Instructions

Record Advance Payment from Customer or Billing Agent

Lookup the Customer or Billing Agent.

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Click the View button for the appropriate Customer or Billing Agent.

Navigate to the "Credit" tab on the left.

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This page will list the Customer's or Billing Agent's current Deposit Account balance, as well as a complete list of credit and debit transactions. Click the "+" button to apply a credit.

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Use the dialogue box to issue a credit to the Customer's or Billing Agent's Deposit Account equal to the Advance Payment amount.

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Record Payment From Deposit Account

Record Ticket Payment from Customer Deposit Account

If a Customer has a credit balance in the Deposit Account, any amount up to this credit balance can be applied as payment on a Ticket.  To record payment from a Customer Deposit Account on a Ticket, the "Store Credit" payment method must be selected when applying a Payment to the Ticket.

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Record Invoice Payment from Customer or Billing Agent Deposit Account

If a Customer or Billing Agent has a credit balance in the Deposit Account, any amount up to this credit balance can be applied as payment on an Invoice.  To record payment from a Customer or Billing Agent Deposit Account on an Invoice, the "Store Credit" payment method must be selected when applying a Payment to the Invoice.

Note, the Invoice must be ready for remittance before the Payment can be recorded.

 

Reconcile at End of Term

At the end of the term, any remaining balance in the Customer's or Billing Agent's Deposit Account will be reconciled using a Repair Ticket (or optionally with a Quick Sale Ticket).

For optimal tracking, a new Catalog Item will be setup to track Managed Services Reconciliation fees.  Since the remaining balance will be variable from contract-to-contract and period-to-period it is imperative that the repair shop will be able to enter the exact amount at the time the reconciliation Ticket is recorded at the end of the period.  Therefore, the Item Type under which the Catalog Item will be setup will have the "Override Price" setting turned on.  

Capture Retainer Balance on Invoice

At the end of the term, the remainder in the Customer's or Billing Agent's Deposit Account must be captured through the Ticketing System as Revenue.  The repair shop will create a Repair Ticket, add the Customer or Billing Agent associated with the contract, add the specially created Catalog Item (i.e. Managed Services Reconciliation) to the Ticket Items section, set the Ticket Item price equal to the amount remaining in the Customer's or Billing Agent's Deposit Account, and set the Repair Ticket status to Waiting for Payment.

With the Ticket recorded properly, the repair shop will follow the steps above to generate an Invoice and subsequently record a Payment from the Customer's or Billing Agent's Deposit Account against the Invoice.

Capture Retainer Balance on Ticket

If the remaining balance resides in a Customer Deposit Account, an alternative and faster method of reconciliation will be for the repair shop to create a Quick Sale Ticket, add the Customer associated with the contract, add the specially created catalog item (i.e. Managed Services Reconciliation) to the ticket items section, set the ticket item price equal to the amount to be debited from the Customer's Deposit Account, record payment from the Customer Deposit Account on the Ticket, and Close the Ticket.  This shortcut method will bypass Invoicing and is therefore only feasible for Customer Deposit Accounts and not for Billing Agent Deposit Accounts.

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