Hand keying Pre-existing Agreements

Hand Keying Agreements During Data Conversion

The issue of creating agreements with incomplete information during a data conversion are two fold. First, the user must be able to set Serviced Through Date, informing the software that orders prior to a specified date, service through, will NOT be generated.  Second, if there is deferred revenue the user needs a way of telling the ServMan's Job Ledger the amount to be recognized for each agreement.  For example, if you have a $200 agreement, you recognize revenue when the work is performed, and one visit has already been completed, ServMan needs a way to know that there is 1 visit remaining and we need to recognize $100.00 when we perform that visit.  The following provides instructions for manually keying these agreements.

You will need to know the following to complete this process:

• Start Date and Term of the original agreement.
• Contract Amount
• If deferring revenue, the balance remaining that has not been recognized to income.
• The date through which your agreement has been fulfilled and orders already created.

Step 1 - Launch the PM Wizard from the client record either from the client menu button or by right clicking on the client record from the Client SmartView.  This will pull up the PM Setup Wizard below:

• Start by back dating the agreement to the start date of your existing agreement and complete the wizard normally.   
• Enter the total value of the original agreement.
• If you defer revenue click the Defer revenue option.
• Click the Pre-existing contract to expose the Serviced Thru date and Remaining balance in deferred revenue fields.

• Complete the Serviced Thru date, most often this is the current date unless your company has created orders in advance for future months.  Any orders regularly scheduled in the 1st day of months PRIOR to this date will NOT be generated by the system.

• Key the remaining balance to be recognized for this agreement.

• Click NEXT

STEP 2 - Assign your system coverage options (See Coverage Types for more information)

• After assigning your coverage type, take note of the NEXT DATE on the screen.  This is the date the system will create the next visit for this contract - based on your coverage type, contract start date and the Serviced Through date you keyed on the prior screen.
• Press NEXT to continue.

STEP 3 - If you have already performed a visit on this contract, prior to moving to ServMan, Select Yes, otherwise, select No and move to Step 4, if you defer revenue, or Step 5 if you do not.  

• When you have completed a visit on the contract, you must set a "First Visit Action"
• Choosing Generate First Visit as Closed for History will create a closed work order under the contract history
• If you have imported your order history, enter the existing order to the contract for historical accuracy  

• Press NEXT to continue.

STEP 4 - If you defer revenue, the Deferred Revenue Options tab will be available.  

  Initial Deferment Option:

• If you have booked your deferred revenue through a journal entry, select "No action required"

• If you wish to create a deferred revenue journal entry for this one contract, select "Create a journal entry to book the contract amount to deferred" and Servman will do so.

  Revenue Realization Option:

• Select "Realize percentage when service is performed", if this is how your company recognizes deferred revenue.
• • The system display the number of Visits remaining in the table
  • Confirm the entries or double-click in the amount field to modify, if necessary

• Select " Realize based on an amortization schedule", if you have realize revenue monthly
• Press NEXT to continue.

STEP 5 - Select the proper Billing Options for this contract (See Billing Options here.) 

• Press Finish

Step 6 - To review the newly created contract, click Yes.  

• Here you can look at the Job balance for the contract by pressing the Menu button and selecting the WIP Reconciliation.  This will show the Job Balance to be recognized.  
• You can additionally view or adjust the Job's Amortization schedule

Note: There has been NO EFFECT TO INCOME OR BALANCE SHEET from this process.  If we look at the Journal Entry created from this process below you will note that the system has simply assigned dollars from the EXISTING DEFERRED REVENUE ACCOUNT to this Job Number, creating an auditable Job Ledger and balance.  This entry can be viewed from the Job screen by choosing the "View\Edit WIP COGS Journal Entries option from the Job Menu.

This is accomplished by creating a Journal Entry debiting/crediting the same account and applying the new Job ID to only the Credit side of the transaction.   The account that is affected is determined based on the Job Group setup screen, PM tab as displayed below:

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