Setting up Maintenance Accounts

When setting up the Maintenance Contract module, you must select a source document for generating ledger transactions originating in the Maintenance Contract module and set up debit and credit accounts for each maintenance cost category. The source document and posting accounts must be established for each division. The source document enables you to find transactions quickly and easily when viewing them in Microsoft Dynamics GP.

Setting up maintenance accounts involves the following:

• Service Management is not compatible with Multidimensional Analysis. You will receive errors if you try to post Service or Job Cost transactions to accounts set up for MDA.
• If you are using the manual method of revenue recognition, you don't set up maintenance accounts since service invoice accounts will be used when recognizing revenue.
• When you create a new division, you can copy the account setup from an existing division. See Copying Division Accounts.

Step 1: Select Service Management Accounts

1. Select Microsoft Dynamics GP > Tools > Setup > Service Management > Maintenance Setup > Accounts.
2. Use the drop-down list in the Maintenance Accounts window to select a Division. You must select a source document and posting accounts for each division.
3. Select a general ledger Source Document.
4. Use the lookup windows to select a posting account for each account field that is enabled.
5. Select Save.

The enabled fields depend on the revenue recognition method being used. Notice there are no sales or accounts receivable accounts because maintenance transactions will not post to the Microsoft Dynamics GP Accounts Receivable module.

Step 2: Select Service Management Accounts for Manually Added Contract Costs

1. Select the Costing (Manual) button to open the Maintenance Accounts – Costs window.

2. For each division enter a debit and credit account for each cost category. The debit and credit accounts are used when posting maintenance contract service call "manual" cost entries.
3. Select OK to save your entries and return to the Maintenance Accounts window.

Step 3: Select Microsoft Dynamics GP Accounts

If you marked the Create COGS Distributions for Invoices in the Invoice Options window or the Use Service Debit Accounts for Microsoft Dynamics GP Costs in the Service Options window, the Cost Dynamics GP button will be enabled in the Maintenance Accounts window. Complete the following steps:

1. Select the Cost Dynamics GP button.
2. Select Debit and Credit accounts for each cost category in the Maintenance Accounts - Receivables window. If you are using Microsoft Dynamics GP Payroll, the Service Management labor accounts will not be used and the labor debit and credit accounts will come from Microsoft Dynamics GP.
3. Select OK to save your entries and return to the Maintenance Accounts window.
4. Select Save.

You must set up the maintenance accounts for each division.

For information on setting up Payroll Offset accounts for maintenance invoices, refer to Setting up payroll and overhead offset accounts.

Step 4: Select Accrued Costs Accounts

If you have the Create COGS Distribution for Invoices option marked in invoice options, trailing costs that remain after a service call is closed are tracked in an "Accrued Costs" invoice account for each cost code and Other sub cost code. Using separate accounts for trailing costs allows you to keep your WIP and COGS accounts balanced.

Example $70 of a $100 purchase order is received, leaving $30 in committed costs. The service call invoice is posted, leaving a trailing cost of $30. COGS is debited for $100 WIP is credited for $70 Accrued Costs is credited for $30 When the $30 trailing cost is received, Accrued Costs is debited. For a shipment, Accrued Purchases is credited. For a shipment/invoice, Accounts Payable is credited.

1. Select Microsoft Dynamics GP > Tools > Setup > Service Management > Invoice Setup > Invoice Accounts. The Invoice Accounts window opens.
2. Use the Cost Dynamics GP button to open the Invoice Accounts - Receivables window.
3. Use the Accrued Costs button to open the Invoice Accounts - Accrued Costs window.
4. For each cost category, specify an Accrued Costs account to track trailing costs on posted service invoices. The LABOR account fields are disabled because you cannot create a purchase order for a labor cost code.
5. When you are finished, select OK.
6. Return to the Invoice Accounts window, and use the Other button to open the Other Sub Category Costs Accounts window.
7. Use the Accrued Costs button to open the Other Sub Category Accrued Costs Accounts window.
8. If you want to use the account that you set up for the OTHER cost category on the previous window, select Default. If you want to specify a unique account for each sub category, use the lookup button to select an account in each field.
9. When you are finished, select OK.