Notifies on contracts that have billed low revenue or volume based on variable setting, to catch those low volume contracts.
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Overview | Samples | Variables | Alert Functionality | Best Practices & Tips | Related Alerts
Overview
Overview
This alert will notify you of active contracts where the revenue or volume of the contract's billing cycle is less than specific amounts you list in the variables. The alert calculates the revenue and volume from the start of the contract up until the most recent invoice. This alert is helpful in bringing your attention to contracts that may not be profitable because of low revenue. Its designed for your contract admin/service management to review and determine if the contract should be terminated, or perhaps reviewed for an increase or increase the minimum charge. This is considering that in some cases, the cost to service, supplies, collection of meters, invoice, collect payment and receipt payment outweigh any small revenues earned on a contract.
Run Schedule: Monthly on the first
Type of Output: Email
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Sample
Sample
The amounts in the Copies and Amount columns are the total volume and revenue billed on the contract and the Number Invoices column are the count of invoices billed since its start date. Divide the Copies and Amount columns by the number of invoices to understand how it relates to your alert Variables.
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Variables
Variables
Variable W: Enter the number of months you require a contract to be active to be considered in this alert. This will calculate from the contract's start date. We recommend a minimum of 12 months.
Variable X: Enter the number of maximum amount of clicks the contract needs to bill on average on each overage to be considered in this alert. Default is 10,000.
Variable Y: Enter the number of maximum amount of revenue the contract needs to bill on average on each invoice to be considered in this alert. Default is $500.
Variable 1: Enter which branch numbers you want his alert to consider. Leave blank for all.
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Alert Functionality
Alert Functionality
1. This alert reviews active service contracts in your system that have a start date that is X amount of months prior to current date (indicated in Variable W) and are linked to one of the branch numbers (indicated is Variable 1).
2. Next, the alert reviews all invoices billed on the contract to get a count of invoices.
3. Next, the alert determines revenue and volumes billed on the contract to complete the "OR" statement of the alert where the revenue OR volume billed are below the variable numbers. See below.
a. Revenue: reviews all valid invoices billed on the contract and totals the revenue of all combined. Average revenue per invoice is determined by taking the total combined revenue and dividing it into the total number of invoices billed on the contract.
b. Volume: reviews the total number of clicks billed on each equipment on each invoice and combines them to get a total number. Average volume per invoice is determined by taking the total combined volume and dividing it into the total number of invoices billed on the contract.
4. Lastly, the alert determines if the calculated revenue OR volume per invoice is within the thresholds set in Variables X and Y. If yes, this contract and the data found is included in the alert output.
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Best Practices & Tips
Best Practices & Tips
It is best practice to review profitability on the contracts that this alert presents. From there, you can make educated decision on when to require a monthly minimum be put into place, or an increase to the existing. Depending on what you find, you may consider cancelling the contract all-together.
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Related Alerts
Related Alerts
ID768 - Worst Performing Contracts/Customers Overview & Sample
ID150 - Contract Profitability SSRS Report Overview & Sample
ID388 - Low Profit Contract With New Service Call Overview & Sample
ID578 - Low Margin Contracts with High Revenue, Overview & Sample
ID560 - Low Profit Contract Up For Renewal / Escalation - Overview & Sample
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