Maintenance Contract Management Maintenance Contract Management
Maintenance Contract driven businesses rely on their services for a regular source of revenue. The InfoMaster ERP Project Costing: for maintenance contract management allows businesses better manage their contracts and perform sales recognition automatically.
InfoMaster ERP Project Costing: for maintenance contract management allows the following options:-
Auto Recurring Invoice Generation
InfoMaster ERP for maintenance contract provides the management with a central interface for entering all the maintenance contract information. This would include the billing frequency, next billing date, maintenance type, effective billing period, billing contents and amount. This ensures that when the time comes, the system will automatically print the invoice with the right information. With auto periodic bill generation, the user does not need to remember which bills are to be printed and when they should be printed. It will resolve all under billings, over billing or forget-to-bill situations.
Unearned Income Computation
Overstatement of revenue might take place when an annual maintenance bill is printed sometime during the financial year. Oftentimes, for an annual contract of $12,000 billed in June, the full amount of $12,000 is realized immediately in June. However, for accurate reporting, $1,000 should be realized for June, while the balance of $11,000 should remain in an unearned income account. Come year end, $6,000 will be moved to the next financial year. Hence the income realized for the existing financial year will only be $6,000. This requirement from an audit point of view is necessary for accurate year end reporting. InfoMaster Project Costing for maintenance contract provides auto computation of the realized portion and the unrealized portion.
Key Benefits
- Automatic billing of maintenance invoices; never miss out on a scheduled billing again
- Specify billing periods; monthly, quarterly, bi-annually, annually, etc
- Pro-rating of billing amounts; supports realized and unrealized revenue
- Automatic generation of service chit; never miss any routine service scheduled
- Full service scheduling and monitoring; efficiently plan and execute your contractual obligations
- Easily track your contract cost and budgets; view contract margin and profitability
