Managing Contract Renewals

Managing Contract Renewals

Overview

Renewal Orders are used to create "Mock" style invoices for your expiring contracts.  The amount invoiced for the renewal is based on either the Coverage Type and Price Group associated with the Systems covered under the plan or the Contract Amount value listed on the Job Screen.  These "Renewal Orders" may be printed and mailed to your clients.  The format for these documents is fully customizable using Crystal Reports.  These formats may be reprinted at any time.   When a payment is received against a renewal order the order is invoiced normally, closing out the renewal order when the invoice is created.  

To create the Renewal Orders, choose the Generate Renewal Orders options from the Contract Management Navigator and select the date range of expiring contracts to include in the process.   Once created you will be prompted to print the Orders and provided a Batch number.   This Batch Number is displayed in the Renewal Order SmartView and is most useful when you need to Reprint your open Renewals, by Batch, for mailings to your clients.  

For more information on pricing and how to handle agreement price increases, click here.

Renewal Order Price Management

There are two options used for determining the price of the client's renewal order.  These pricing options are contract specific so that you can select the correct option for each client.

Option 1 - Uses the standard System type and Price Group assigned to the System Coverage Type setup.  Using this method allows you to set pricing based on the number of units, by equipment type, based on the specific coverage option of the equipment.   When using this method, you have the ability to lock pricing on a contract, using the LOCK price option on the PM tab of the agreement setup screen for any period of time.   

• Click the Price Lock/Discounts checkbox on the PM (01) tab of the job record.

• This brings up the Price Lock screen where you will enter the ending date of the lock (enter 99/99/9999 if the lock should never expire)
• Enter the amount to charge for the first and subsequent units for each equipment group
• You may also choose to add a percentage discount, and expiration of that discount, to the renewal order via the bottom 2 fields
• PLEASE NOTE that the Discount fields work independently from the Price Lock. They may be used in conjunction with each other or independently

• If pricing is not locked, when the renewal order is generated it will use the pricing from the coverage setup screen,  displayed below, for each piece of equipment covered.  Using this method, managing price increases is as simple as modifying the coverage plan pricing.   See Managing Price Increases for more detailed information.

Option 2 - This option is often used by clients who are migrating to ServMan and do not have the information to configure their contracts during their initial data conversion.   The software provides the ability to force the renewal order to use the pricing manually maintained in the Contract Amount field, displayed below, on the agreement setup screen.   To use this field instead of the coverage pricing, you must check the "Use this Contract as Client Pricing Default" checkbox.

back to top

Renewing Agreements from Renewal Items on Orders

Often technicians will collect a renewal payment when performing a site visit.   Item codes are used to designate renewal transactions by setting the contract activity on an item of "Renew".  Just like adding a new agreement from an order detail line, you can also renew an agreement directly from a detail line on an order.   Click here to learn how to set up these items.

• Right click the detail line that has the Contract Renewal information

• This launches the Manual Contract Renewal Wizard
• Follow the screen prompts to complete the transaction   
• Any orders renewed in this manner will NOT be displayed in the batch processor documented below as they have already been renewed

back to top

Renewing Agreements - Batch Contract Renewal Wizard

The majority of your contracts will be renewed in a batch through the Batch Contract Renewal Wizard, located in the Renewal column on the Contract Management (01) Navigator.   This wizard scans your system for all posted payments received against Renewal Orders or contract renewal items posted to standard work orders or invoices.   The batch renewal grid displays the amount paid by the client as well as the renewal Amount based on the renewal order and the Contract amount listed on the current screen.   All should be reviewed.   If the client has modified their coverage options the contract should manually be adjusted to reflect the new coverage options.

• Select the date range, department and job group for those contracts you want to renew

• All transactions that match the above criteria will be displayed in the grid in the Pending Status.    
• The contract can be edited by Right Clicking on the detail line.

• Each transaction must have an action associated with it listed under the Action column.  
• The default action is based on the Item code that triggered the renewal event.    
• You should review each contract to confirm the renewal period.   
• You can optionally choose to Renew Manually, Don’t Renew or Hold.   

• Once you have reviewed your agreements and set the proper action, choose Finish to automatically renew your agreements.  

• NOTE: This process renews the agreements only. If these agreements are on Auto-Pay, you must take payment through your regular batch payment process found on the AR Navigator

back to top

Viewing Renewal Orders

Renewal Orders may be viewed using the Renewal Order SmartView.   This is accessed from the Orders SmartView by choosing the Renewal Order view from the selector in the upper right hand corner of the screen.   If you do not have this as an option, you may not have the proper security settings or may not have the module properly activated.  If so, contact ServMan support for assistance.

Renewal Order - SmartView

• Renewal Orders are a unique order type with a type setting of RNW.   NOTE: They will not be displayed in any other standard order SmartView or report.  

Renewal Order - Viewing from Job (Contract)

If you need to view a Renewal Order for an individual Contract, it may be viewed directly under the contract (Job) record for the client.   

• Open the job record and select the Renewal History (01) tab

• "Show Renewals Sent" from the drop down listing

Editing a Renewal Order

You may right click on a Renewal Order in any of the views to Edit or Print.

Printing the Renewal Orders

Immediately upon creation of the Renewal Order, you will be prompted to print the renewals and will be provided a Batch number.   

You can also reprint them at any time from Reports -> PM (01) ->  PM - Renewals (01).   

• Orders may be reprinted based on the Renewal Order Date, Batch Number, or specific Order Number   
• The Renewal Order Date is based on the expiration date of the contract NOT the date it was created  

back to top

Posting Payments to Renewal Orders

Post payments using COD Batch on Order

Payments may be applied directly to a renewal order using the standard "COD Batch on Order" procedure found on the Accounts Receivable navigator.   

• All Renewal Orders have a pre-fix of "R" for the order number
• If you do not have the renewal order number, press the picker a button (...) located next to some screen and grid fields; clicking this button displays the associated list or view button and choose the Renewal Orders (01) SmartView to locate the number    
• Select a Renewal Term from the dropdown on the Pop Up screen to select the number of years to renew the agreement  

• Apply the payment to the Renewal Order and process the batch normally    
• NOTE: All payments that are received against Renewal Orders or applied against renewal items will be processed through the Contract Renewal Wizard, as discussed above.

Paying a Renewal with a CC or eCheck Payment

• Apply payments to the Renewal orders as you normally would when a client is paying by credit card or eCheck.   The system will prompt you, as above, for the renewal term.   
• This payment will be displayed, along with the renewal term, when running the Contract Renewal Wizard, explained above.

Auto-Paying Agreements with Credit Card or eCheck Agreements

The New Contract Wizard creates a Recurring Invoice for your Monthly Agreements using a specific Terms code flagged for credit card or eCheck processing.  

The Batch Contract Renewal wizard creates the renewal invoice that will need to be paid.

• Run your standard Credit and eCheck batch processes to auto-pay these invoices based on the Terms code applied to the invoices.  

back to top