This webinar recording goes through contract management practices in ServiceTrade that will benefit your service managers, salespersons, and accounting staff.
• What you need in your ServiceTrade account to effectively manage contracts.
• Setting up a customer-specific contract with rules that control markup and price.
• How your sales team can track contract renewal dates and calculate commissions.
Watch the recording then check out the resources and Q&A below.
- What is the advantage of using contracts? We don't currently use them, and I feel like we have all the same functionality by using quotes only?
The most common reason people use Service Contracts is to auto populate pricing info when adding items to quotes or invoices. It’s not required to fill out a quote or an invoice but it will save time by not having to manually add the item pricing.
- Will the review on date need to be updated once that date passes? Typically we set this for 1 year from the renewal date and would like it to auto update every year.
Yes, you’ll need to update the date upon review manually. There isn’t an automatic update of the date as it’s intended to remind you to review and either send a renewal quote for the next year or update the date for the next review date.
- So customer really means company--the billing, not the site address?
Correct. Company = Bill To, Location = Job Site
- Can you add more than 1 location (under single location). For example, if you had 5 locations and 2 of them won't be under this contract but 3 will, can you select those 3?
If I am understanding this question correctly, then the answer is to create a company contract and then separate location contracts as children of the parent company contract.
- We found that when using multiple filters just discussed...the new contract view is not available? Do we know which filters do not yet allow new contract view?
This is referring to location filters which in old contract view, which allowed you to apply a contract to multiple locations only. As the options for applying contracts to multiple locations has been updated and is much more flexible and nuanced now, location filters are not supported in the new contract view.
- When I try to use the new contract view, I get a message that says "the new contract view is not available for this contract because it includes complex price rules or too many price rules." What can I do?
The new contract page does not currently support some of the complex rules that the old contract page supports. For now, if you’d like to use those complex rules, you’ll need to stay on the old contract page.
- Some of our special pricing includes labor prices that apply to all jobs. These are typically set as a part of their inspection contract. Is there a way to pull the special pricing without the job being assigned to the contract (to keep the inspection contract margin separate) or do we need to set up both an inspection contract and a labor rate contract?
Create a default contract and add the labor rates to it. Then create a contract specifically for inspection jobs, and assign the default contract as its parent.
- Subsequent "up to" levels start at the prior one's ending amount?? I assume, yes??
Absolutely. For example, if you have a rule that Items with cost up to $1000.00 are marked up by 60%, and the next rule you create is that Items with cost up to $5000.00 will be marked up by 50%, Items from $1001.00 to $5,000.00 will be marked up by 50%.
- I know that when we use administrative charge or min charge, it adds an item that our accounting software does not recognize. Is there a way for us to choose an item from our library that is used when the min/administrative charge is generated?
There isn’t currently an option to select the Item indicating that admin or minimum charge. The fix here would be to add that Item
- When a Customer has more than one location with different pricing, what is the recommended practice?
The most common practice is to create a company contract that has all the common pricing across all locations for that company. Then create a company contract that is location specific for each location and place that locations pricing within that contract.
- We do hood cleaning. Every system is different therefore pricing is different for each customer. That would mean each customer would have to have their own contract. Is that correct?
Yes, if you have a different price per company (and all their locations) you’ll want a company specific contract for each company. If each location have different pricing, you’ll want to create a company contract and make it location specific for each location.
- Is there a way to make the markup apply to the year of the contract rather than an amount? for example after 1 year the price increases by 5% No, there isn’t a way to auto increase pricing on a contract.
You’ll want to set a review date to remind you or your team to update the contract on a yearly basis.
- So...if we quoted something using the contract it would show up in the contract summary even though the contract is a quote?
Contracts don’t show you quotes. You can use your pricing contracts to fill pricing when creating and sending quotes to customers. But Quotes do not currently show up as a summary on a contract.
- Can you create a contract that you can basically apply to any customer, if you are creating that child contract from your default pricing?
- Can you enter a due date and or multiple due dates? If so, will the system automatically let you know and or generate a report?
The Contract has a Review date that is searchable in the Contract search page. There’s no automatic reminder but the search can easily be run whenever needed.
- We have a Parent customer that has multiple locations, all locations will share some standard pricing for some services, but one service that will be performed at each location will vary at each location. Is there a way we can tie the children and Parent in an contract so that we don't have to create 7 different contracts and 7 different approvals?
If the services share an item code and have prices that are different per Location, then you will need a separate contract for each unique pricing of the item. However, if the prices are not different or if the underlying item codes are different, then you can use a single Contract for all Locations.
- Can you set up email notification when contracts are expiring?
There is no notification for contract expiration in ServiceTrade. A best practice would be to set a calendar event or reminder on that date so that you or your team can review it.
- Can you export the contract as a PDF file?
Not at this time.
- Can you print a contract?
There is no current way to get a printable view of a contract.
- Is there a plan for the contract to show gross margin dollars and percent on contracts?
Not at this time.
- Is the contract name, creation and expiration dates sent to Redshift?
There is not currently a customer contract data warehouse.
- After you VOID an INVOICE, why does it continue to show in the Revenue to Date? Shouldn't it remove a voided invoice amount from Revenue to Date?
This is a bug that should be fixed in a future update. Good catch!
- If I have a customer who agrees to a 30% mark-up on materials but wants to see the mark-up on their invoice (Transparency)
You could add an ad hoc item called “30% markup applied”, or make a comment with that information, or a memo on the Invoice. There is no automatic way to configure ServiceTrade to show that however.
- Is there any way for sales reps to send service contract drafts to prospects/customers for them to approve/sign? There isn’t currently a way to send a contract for approval.
This is a feature request that has been logged with our product team.
- Going back to just updating the end date when the contract is renewed, would the estimated revenue totals then be filtered by the new start/end dates or would it not be a running total since the beginning of the contract?
The contract total revenue to date is a running total of all invoices associated with this contract.
- Can you use a filter to select which locations you want?
Location filters are a complex contract feature and are not supported by the new contract page. Company and location specific contracts have taken their place.
- Is there a way we can run a report to see what all contracts are expired or going to expire soon?
Contracts do not have a Status to filter by. To get to this information, export Service Contracts to .csv and sort by the ends_on column.
- The items you enter on the contract are being entered as cost and not listed price? That is why you create the markup rules?
Cost markup rules are interacting with the Item Cost contained within the Item Library. You can choose to set the price of an Item in the Contract, or you can choose to charge a percentage of the Cost.
Thank you for all of your great questions. If you need help with any other details, send them to firstname.lastname@example.org or use the blue question icon at the bottom of this page to chat with customer success.