Annual Maintenance Contract

[Former Member]

Dear experts,

Need your advice on how best to configure the process for annual maintenance contracts (AMC).

My client provides service through maintenance contracts. Whenever an AMC is signed up and the money is received from the customer. They account it as advance from the customer. So the customer would have zero balance in debtors control account but an amount (say INR 120000) as an advance from the customer.

The monthly revenue (10000) would be booked on monthly basis and the advance would be adjusted for this monthly invoice.

1.Please let me know how can this be achieved through the sales module (through downpayment invoice).

2.Can this "advance from the customer" account be defined as a control account

Thanks,

Arun

[Former Member]

Hi Arun,

To post to the "Advance From Customer" (non-control Account) account, create an DP Invoice

- Set the g/l account determination of "Down Payment Clearing Account" in every customer & g/l account determination.

- Create Sales Order to record the Maintenance Contract.

- Create DP Invoice (100%, based on SO)

- Receipt Payment.

- Every end of the month, create A/R Invoice based on SO (1/12 SO Value). Draw your DP (same value).

- Post your zero value invoice.

Cheers