When sold service contracts
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Overview
AATC sometimes sells Warranty Service Contracts on the Sales Order.
There could be multiple lines of Warranty Service Contract.
$1000
CR Service Revenue, 1000
Should default Cost on the service line with a pre-defined amount, such as 500
Create Vendor Bill to automatically created, with customer first name, and last name, cost
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Setups
Create an Item for the Warranty Service Contract.
Use Standard Base Cost to define the contract’s cost.
Use Standard Base Price to define the contract’s price.
Add Warranty Service Contact Vendor, a lookup field to Account table.
On the Company Setup page, add 1 field:
Warranty Service Contract Service Item, an item lookup field.
Create a Vendor account that offers the Warranty Service Contact.
Enter a default Expense GL Account on the Vendor
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Use it on the PIL
DB COGS, 500
CR Payable Account, 500,
Then select records to pay
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Account.
The default GL Account should be in COGS section.
On the Sales Invoice Line, add a lookup field, Warranty Service Purchase Invoice, a lookup field to the Purchase Invoice table.
Sales Order and Sales Invoice Process
Make sure the Standard Base Cost and Standard Base Price are populated when the Warranty Service Item is entered on the Sales Line and when the Sales Invoice Line is created.
When posting Sales Invoices, if there are any Sales Invoice Lines with the following conditions:
Item = Warranty Service Item defined on the Company Setup.
Warranty Service Purchase Invoice is blank.
Create a Purchase Invoice per Sales Invoice Line.
Use Warranty Service Contact Vendor defined on the Warranty Service Item page.
Use the default GL Account defined on the Warranty Service Contact Vendor page.
Copy the following fields to the Purchase Invoice Header for reconciliations:
Last Name
First Name
End of Month Routine
Review Sales Invoice Lines with the following conditions:
Item = Warranty Service Item defined on the Company Setup.
Warranty Service Purchase Invoice is blank.
Post all open Purchase Invoices created for the Warranty Service Contract.
Select Purchase Invoices to pay.