Set up an Agreement in SM Agreements

You can use the Agreements tab in SM Customers to quick-add agreements as needed; however, this method only allows entering basic information for the agreement.

To enter an agreement in its entirety—which includes services, budgets, billing and amortization schedules, and labor allocations—you will need to use SM Agreements.

When you first add an agreement, it is set up as a quote. Once the quote is approved, it becomes an agreement. The process outlined here will guide you through the process of setting up the agreement quote.

To set up an agreement in SM Agreements:

  1. Open SM Agreements.
  2. In the Agreement field, enter N, New, or + to have the system auto-assign an agreement number or enter the agreement number manually.
    Note: The system automatically sets the Revision and Version values, which cannot be changed. For more information about the Revision, see the Revision F1 help. For information about Versions, see About Agreement Versions / Terms.
  3. In the Description field, enter a description of this agreement.
  4. If applicable, in the Alt Agreement field, enter the alternate agreement identification number used by the customer to track this agreement.
  5. In the Agreement Type field, enter the agreement type or press F4 to select from a list of valid agreement types.
  6. In the Customer field, enter the SM customer or press F4 to select from a list of valid SM customers.
  7. Optionally, in the Customer PO field, enter the customer's PO number to default work orders generated for this agreement.
  8. In the Effective Date field, enter the date this agreement became or will become effective.
  9. In the Start Date field, enter the start date for an agreement version beginning at a time later than the effective date and prior to the expiration date.
  10. In the Expiration Date field, enter the date this agreement expires.
  11. In the Rate Template field, enter the rate template to use for (add-on) work performed on a work order that is not covered by the agreement price.
  12. In the Agreement Price field, enter the agreement amount. This amount represents the total charge to the customer (for all services listed on the work schedule) for the life of the agreement.
  13. If you are not using "As Costs Incurred" revenue recognition (that is, the Recognize Revenue as Costs Incurred check box is not selected in SM Company Parameters), select the revenue recognition method from the Revenue Recognition drop-down.
    Note: If the Recognize Revenue as Costs Incurred check box is selected in SM Company Parameters, the Revenue Recognition drop-down is disabled and set to C - As Costs Incurred.
  14. In the Margin field, enter a mark-up percentage to apply when recognizing revenue for this agreement.
    During the revenue recognition process (in SM Revenue Recognize), the system determines the revenue to recognize by applying the margin to the sum of all associated costs (that is, work completed lines posted to the agreement work order).
    Note: Entry in this field is required for As Costs Incurred revenue recognition.
  15. In the Invoice Format field, enter the custom report to use for printing agreement billing invoices for this customer.

    Leave blank to use the Def. Agreement Inv. Report specified in SM Company Parameters.

  16. If your agreement includes Material tax, use the Matl Tax Override drop-down list to select the appropriate material tax default for an entire agreement (N - No Tax, S - Sales Tax Only, or U - Use Tax Only).
  17. Select the Auto Schedule Trips check box to have a service automatically scheduled on the Dispatch Board.
    Note: Auto-scheduled trips will default to the date and technician specified on the SM Service form.
  18. If the Agreement Type you specified in Step 5 is flagged for auto-renewal (in SM Agreement Types), enter the date through which to renew the agreement in the Renew Through field. Date must be greater than the expiration date specified for the agreement.
  19. If you entered a Renew Through date, enter the renewal markup percent in the Renewal Markup field.
  20. Set up an agreement budget.
  21. Set up services for the agreement.
  22. Set up a billing schedule.
  23. Set up an amortization schedule.
  24. Set up labor allocations.
  25. Activate the agreement.