Contract Set Up - Click Time or Copies Usage Contracts and Track in eAuto

Contracts needing to track click usage should be set with an expiration date as well as being set to expire by copies while collecting a meter reading quarterly so you can keep up with the usage. By doing so, when the contract expires by copies, the contract record will bill for any of those overages and you can then renew the contract (details below). Until the clicks are reached, the base accrual schedule will continue. Once the clicks are reached, you can then recognize the remaining accrued revenue (details on that below) as well as recognize any revenue associated with overages (if any).

 eAuto Contract Record & Equipment Record Set Up:

Below are screen shots of the sample contract set for 5 years / 150K copies showing needed settings on eAuto Contract Record.

1. Set with Expiration Date (60 months) and with Expiration Copies (150,000)

2. Contract should be set with Renewal Cycle of 60 months

3. Overage Cycle should reflect the total months of contract (60 months)

4. Meter Group (from Meter Groups tab) be sure to check off Include this group in calculating expiration copies:

 **For a color machine, you would add the allowances for b\w and color together and put this amount in the expiration copies field and then break them down in each meter groups covered copies field.**

You will also need to edit the Equipment Record so you can set to auto collect meter readings quarterly.

5. Enter Meter Reading Contact under Billing/Contact tab of Equipment Record:

6. On Equipment Record, Meters Tab set Require meter reading on service calls so your tech can be sure to always report a meter reading. And set Use automatic meter requests to Use equipment meter cycle (as opposed to contract overage cycle) to quarterly. This will ensure an automated meter reading request is sent each quarter regardless of usage or service calls. You can set an eAgent task to automatically send meter reading requests – let us know if you would like more information on how to set that up.

When contract has expired by time or clicks (be sure to bill any overages first), then renew the contract. Be sure to also terminate contract with listed termination code. After this is completed, eAuto will automatically create an identical Contract Record but with Contract Number of CONTXYZ4-02 (the -02 represents 2^nd contract / renewal as the first contract is CONTXYZ-01).

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Reporting & Tracking:

With these settings, the Contract Record will see the usage and you can use varying reports in eAuto to see when such contracts are nearing their allowed clicks or have already reached their allowed clicks. 

Alert ID545 - Contracts meter groups used or about to use it's covered copies. More on this alert here.

Under Service Tab / Renew Contracts:

OR you can also filter by renewal cutoff date (expiration date) and By Expire by Copy Contracts Only and pick Percent Complete. Any contracts set as the Best Practice illustrated above that have met that percentage of clicks will populate.

You can also see within the Contract Record how the contract stands with its expiration copies, be sure to select ‘Recalculate accumulate copies’ so it can update based on recent meter reading activity.

eAutomate also has a Report under Reports / Service / Contract Expiration Worksheet with varying filters available:

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Monthly Accrual:

Each month please be sure to accrue your contract revenue under Service / Accrue Contracts:

You can then set date to accrue as of and recognize that earned accrued revenue:

Best Practice Recommendations:

1. How to handle an expire by copy contract when one meter group reaches it copy allowance before the other meter group?

   If one meter group uses its allowance before the other, then you will need to move that meter group to a new contract as a CPC and bill for overages with no allowance. e-Auto does not monitor the meter groups separately and looks at the total copies for both meter groups to determine expiration by copies so you will need to use our ID545 alert to monitor the meter groups separately. Once the other meter group has used its copies it can be moved to the new CPC contract along with the other meter group with no allowance.

2. If my customer pre-pays for their entire base period up-front, howdo you recommend we set up and handle that contract?

   If for example, a customer pays for 5 years up front, then we would recommend both base and overage be setup on a 5-year billing cycle. But set the meter read requests on the equipment to not use the contract overage cycle. Instead set it to use the equipment cycle and set that to monthly or at least quarterly so you are getting regular meter reads in order for it to calculate the expiration copies regularly. Unless the equipment is on a DCA that regularly inputs the meter reads into EA. The contract should be setup as an accrual that recognizes revenue monthly. If the meter groups use their allowance before the 5 years is up, then you should force the rest of the revenue to accrue before terminating the expire by copies contract.