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Evo-ERP and DBA Classic >> Sales >> Create invoice for retainer services
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Message started by MBG on 03/28/12 at 10:57:51

Title: Create invoice for retainer services
Post by MBG on 03/28/12 at 10:57:51

We need to bill a customer for a monthly fee for retainer services. We're selling only our time and expertise for a flat monthly fee. There is no inventory involved.

I need to know how to set up an "Monthly Retainer" item for billing so we can create an invoice that won't do anything but debit Receivables and credit a Retainer Fees income account.

Do I need to set up a new inventory item? Do I need to set up a new item class? Do I create a sales order then pick this non-inventory item for the invoice line billing? We've never attempted this before, so we're not sure how to proceed.

Paul
Mont Blanc Gourmet

Title: Re: Create invoice for retainer services
Post by GasGiant on 03/28/12 at 12:54:43

We do some monthly service contracts and some monthly rental agreements. Just as you say, we set up a type L part, set up a class will GLs for the income account that we want to hit, and then make a Sales Order for that item. In our case it is a contract, so we put 12 lines with due dates the first of each month and keep them in a file that we invoice the first of each month. This method keeps the projected income in the system and on reports, shows up as a late shipment if we were to forget to invoice, etc.

On the AP side we do use recurring vouchers, but I'm not sure a recurring invoice would cover all of the bases.

Title: Re: Create invoice for retainer services
Post by Lynn_Pantic on 03/28/12 at 20:55:39

I use Recurring Invoices (SO-J & K) for all our support billings and it covers all the bases including commissions (if applicable). You do need to set up the Non-Inventory or Labor part number for the service being billed and the Class to hit the appropriate GL account for Revenue. And you need to remember to run SO-K to generate the Sales Orders. Since it is a significant portion of our billings, forgetting to run SO-K isn't likely but if it is a minor part of the business, it could be forgotten.

Title: Re: Create invoice for retainer services
Post by MBG on 03/29/12 at 08:29:51

Thanks, Lynn and Colin

That tells me what I need.