Tracking Maintenance Contract Profitability

Profitability is recorded in the Revenue/Costs window.

1. Select Cards > Service Management > Service Manager.
2. Select a customer and select the Contract indicator.
3. Select a contract and select Revenue/Cost. The Revenue/Costs window opens.
4. Select the Costs Life to Date button to open Contract Costs Life to Date window, which displays total costs for each cost category for the life of the contract.

5. If you are using the percentage-of-completion revenue recognition method, select the Period Summary button to view the posted transactions to date. Double-click a row to view transaction detail. 

   

   If you are using the manual method of revenue recognition, the Period Summary button is not available.

6. If you are using the revenue schedule method of revenue recognition, select the Revenue Entered button to open the Revenue Schedule window. Revenue amounts are listed along with the Date, Year, and Period in which they were posted. If the revenue amount has not yet been recognized, 0/0/00 appears in the Posted Date column. 

   

   If you are using the manual method of revenue recognition, the Revenue Entered button is not available.

Reviewing the Contract Spending Plan

If you created a contract spending plan with estimate costs distributed based on how you expect actual costs to be incurred throughout the life of the contract, you can use the Maintenance Contract Spending Plan report to review estimate costs, actual costs, billed amounts, and recognized revenue by month. This allows you to compare estimates to actuals and determine contract profitability at any point in time.

The Contract Spending Plan report can be printed for any open contract.

1. Select Reports > Service Management > Service > Contract Spending Plan, or use the Print button on the Maintenance Contract window to print the Spending Plan report.
2. On the Spending Plan Report window, define the report parameters. You can filter by Division, Customer, Location, and/or Contract number. If you are printing the report from the Maintenance Contract window, these fields default. You can use the Clear button to clear all filters.
3. Select Print to print the report.

Actual and estimated costs and labor hours print by cost category for each month. If any billing and/or revenue records have been posted, those totals are reflected in the Total Billed and Revenue Recognized amounts.