When setting up a new base/overage or cost-per-copy equipment service contract, there are standards to follow to ensure accuracy and consistency.
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Overview | Best Practice Steps | Other Helpful Info | Related Alerts
Overview
Overview
Following the best practice described below will ensure that the contracts you bill are set up properly and consistently. This is especially important when considering revenue billing to the correct place, reporting on various contract aspects such as profitability, and more. Having accuracy in the setup of your contracts also allows for the use of our alerts, providing you better insight into your contract billing.
The process below is outlined for contracts that bill the base on the installment-based billing tab as a contract base rate. However, to ensure all ways of billing the contract's base amount are covered, within the process are notes on what you would do if you were setting up to bill a meter group base or equipment base.
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Best Practice Steps
Best Practice Steps
In E-Automate, go to Service from the top tool bar and select Contracts
In the Service Contracts screen, click on the New button in the upper left-hand corner to create a new contract
A new Service Contract box will appear. Complete the fields below to create the new contract.
Header Section
Contract Number = leave alone and this will auto-populate
Customer = select customer
Contract type = select the contract type that is appropriate
Contract bill code = select the contract bill code that is appropriate relating to the coverage of the equipment on the contract
Status = Active
Billing method = Installment
Renewable = is check-marked
Renewal Cycle = Annual
Start and Expiration Date = select the dates in accordance with the agreement - we recommend that you evergreen your contract by un-checking the expiration date. This allows for the auto-renewal to occur every 12 months from the start date.
Installment Based Billing Tab
Billing Cycle = select how often the base should bill for this contract
Billing Period = this should populate based on the start date and the billing cycle selected
Bill Base in Arrears = leave un-checked - unless it should bill in arrears which is not typical
Bill Base in Advance = leave blank, the contract will naturally bill 1 month in advance - if you want it billing any additional months in advance per your written agreement then add those months here
Use Contract Base Rate = select this field (however, if you are billing the base on the equipment or on a meter group, select Use Equipment Base Rate)
Base Rate = enter the base amount to be billed with each billing cycle (or leave blank if you are billing the base on the equipment or on a meter group)
For X = enter the number of months in the base billing cycle
Use standard distribution = select this field
Base Distribution Code = select the appropriate base distribution code that will point the revenue billed for the base amount to the correct GL
Use Base Cycle Consolidation = leave un-check marked
Add auto-escalations to the base payment on this tab by adding a base rate schedule - Click this link for more detailed information on setting up escalation schedules here. (however, if you are billing the base on a meter group, do not set up the escalation on the installment based billing tab)
NOTE - if the base cycle is longer than 1 month, you'll need to set up the accrual for the contract, click link here for more details
Equipment/Item Tab
Click the Add button in the lower left-hand corner to begin adding equipment
Follow the steps below for the Add Contract Equipment/Item box that appears
Equipment/Item Tab
Equipment = select this field
Equipment Number = select equipment to add to the contract, you can add by entering the equipment ID number, serial number or using the magnifying glass and
NOTE: If billing the base on each piece of equipment, add the base amount for this piece of equipment in the Base Rate
Start Coverage Date and start Base Billing Date = select the start date of the contract for both fields
Bill Code = leave blank - only select a bill code on the equipment level on the contract if the individual equipment should have coverages that differ from the Bill Code selected in the header of the contract
Bill Code = leave blank - only select an SLA Code on the equipment level on the contract if the individual equipment should have SLA that differ from the SLA within the Bill Code selected in the header of the contract
Override Taxable = leave un-check marked
Meters Tab
Start Meter Reading Date = select the date for the begin meter, it must be within the tolerance window set for your company's billing for the first bill date
Meter Display = enter the start meter - you'll do this twice if a B/W and Color machine
Click OK in the lower right-hand corner to add this equipment record to the contract
Repeat these steps until all equipment is added to the contract
Meter Groups Tab
Overage Cycle = select the appropriate overage cycle for the contract
Billing Period = this should populate based on the start date and the billing cycle selected
Allow Bulk Meter Collection = checkmark this box if you want to be able to use the auto-estimation tool in the Billing Queue for this contract
Add auto-escalations to the overage rate on this tab by adding an overage rate schedule - Click this link for more detailed information on setting up a contract to calculate expiration copies here. (if you are billing the base on the meter groups, add the auto-escalations to the base rate schedule on this tab)
Click Add in the lower left-hand corner to create new Meter Groups
In the Add Meter Group box that appears, follow the steps below
Meter Group = Name the meter group (example B/W Copies or Color Prints)
Description = can leave blank, this is optional - if you want to a more detailed description of the meter group use this area
Select Equipment Meters = Move equipment from the Available Meters box to the Selected Meters box if they belong in this meter group by clicking on the rows for the equipment in Available Meters and arrowing them into the Selected Meters box
Include this group in calculating expiration copies = leave unchecked - Click this link for more detailed information on setting up a contract to calculate expiration copies here.
Overage Contract cycle = leave unchecked
Overage Method = Allowance
Covered Copies = enter the number of allowances the customer will earn each overage billing cycle as listed on the signed agreement (example, if they signed a contract for 1,000 allowances per month, but bill a quarterly overage, you'll enter 3,000)
Use Single Rate = select this field
Overage Rate of = enter the overage rate for this meter group as listed on the signed agreement
Overage Distribution Code = select the appropriate overage distribution code that will point the revenue billed for the overage for this meter group amount to the correct GL
NOTE: if you are billing your base amount on each meter group, checkmark the Bill Meter Group Amount on the right side of the meter group screen and enter in the base amount and click tab on your keyboard. Also select the base distribution code to select the appropriate overage distribution code that will point the revenue billed for the overage for this meter group amount to the correct GL
Click OK on the lower right-hand side to save this meter group
Repeat these steps until all meter groups are created and have the appropriate equipment added to them
Billing/Contact Tab
Bill To = The Bill To section of this tab can be used in a variety of ways to ensure your base versus overage billings are being generated to the correct customer record(s). It is also a tool that allows for you to require the base and overage always bill together on one invoice or instead always bill on separate invoices from each other. See below for how to setup each scenario.
Billing Base and Overage to Customer on Same Invoice:
Select correct bill to customer in the Bill To field and leave the Use alternate Bill to for Overage unchecked
Billing Base and Overage to Customer on Same Invoice:
Select correct bill to customer in the Bill To field
Checkmark the Use alternate Bill to for Overage box
Click the ellipses box to the right
In the Overage bill To box that appears, select correct bill to customer in the Bill To field
Terms, Tax Code, Exempt Code and Charge Method should auto-populate from the customer record selected. If they have a special format for their overages only, select the Report Group for that.
Billing Base to a Pass-Thru Lender and Overage to Customer:
Select correct bill to customer as the lender's customer record in the Bill To field
Checkmark the Use alternate Bill to for Overage box
Click the ellipses box to the right
In the Overage bill To box that appears, select correct bill to customer in the Bill To field
Terms, Tax Code, Exempt Code and Charge Method should auto-populate from the customer record selected. If they have a special format for their overages only, select the Report Group for that.
NOTE that if the lender also bills your overages, you can follow the process above to have both base and overage bill to the lender either on same invoice or separate.
Contact = this is optional and not used often, you can add the contract contact here to know who to reach out to regarding contract changes outside of the customer's AP
Branch = will auto-populate from customer record
Group invoices according to customer, bill to, etc. = leave blank - if you want your contracts for this customer to group bill on 1 consolidated invoice this is an option to select. Click this link for more detailed information on group invoicing here.
Bill Contract = leave check marked in order for the contract to show up in the billing queue - if you'd like to remove the contract from billing queue until set up is complete it is recommended to uncheck it until ready
Billing Group = Select if this contract falls into a special billing group designated by your company - this can be used to create bill groups in the Billing Queue to split billing between teams and giving them filtered searches to only see their group contracts to be billed
Tax Code, Exempt Code, Terms, Sales Rep = this will populate from customer record
Report Group = this will populate if set up to do so in the Contract Type - otherwise select report group which determines the format of the invoice
Blanket PO = enter customer's blanket purchase order number if applicable - this will print on the customer's invoices
Lease Schedule Number = enter the lenders lease agreement number here that is related to the pass-thru billing from the lender
Job = leave blank
Charge Method = will auto-populate from customer record
Lock Bill code = leave unchecked - it is an option to check the box if you want extra security around changing the contract's bill code
Lease Mode = leave on None
Messages Tab:
Use this tab to enter any messages to the contract billing team that they should know when processing this contract's invoices. By checking the Require Acknowledgement box, you will require that the billers acknowledge the message before they are able to generate their invoices. These are internal messages only and will not print on the customer's invoices.
Remarks Tab:
Use this tab to have additional remarks print on the customer's invoices if applicable. You can enter a one-time remark and select the Print on Next Invoice box, or you can have the remark show on every invoice by entering the remark in the Recurring Remark section.
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Other Helpful Info
Other Helpful Info
Grouping Contract Invoices Best Practices
Contract Accruals - Set Up & Maintenance Best Practice
Contract Set Up - Click Time or Copies Usage Contracts and Track in EAuto
Contract Set Up - Contracts for Non Equipment / Managed IT Services
Contract Set Up - One Contract to Bill Base to Lease & Overage to Customer
Contract Set Up - National Account Contracts (Contracts Paid for by Vendor Credits)
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Related Alerts
Related Alerts
ID319 - Contract Meter Group Containing Color Meters and has 0 Covered/Allowed Copies on the Meter Group
ID658 - Contract Set as not Taxable
ID116 - Contract Assigned To A "Location Customer" Vs. Parent
ID844 - Contract Terminated, Expired Or Not Active For Equipment In Specified Status
ID502 - Active Contract Meter Group Has Mixed Meter Type Categories In The Same Meter Group
ID739 - Active Metered Contracts No Base Charge And No Base Clicks
ID115 - Contracts That Have Covered Copies Yet Billed Zero Copies
ID514 - Equipment Newly Added To Contract
ID488 - Inactive Equipment On Active Contracts
ID617 - Contracts Terminated Today
ID20 - Contract Overage Rate Check
ID261 - Contracts with No Scheduled Increases for Base or Overage
ID114 - Active Contract With Bill Contract Checkbox Turned Off
ID293 - Contract Equipment Not In Any Meter Group
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