Utilizing Agreement Reserves

Table of Contents

• Overview
• Instruction
  • Turning on agreement reserves
  • Setting up agreement reserves with bill from the office
  • Setting up agreement reserves with bill from the field

Overview

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Agreement Reserves is a way to recognize your income when the service is completed on your agreements. This is sometimes referred to as agreement differed revenue or agreement amortization. The reason you may want to use reserves is to accurately track the cost of your maintenance visits vs. the income that was collected. When properly configured in FieldEdge the differed revenue can be automatically moved to the proper accounts in QuickBooks when sold, renewed, or when the maintenance is performed.

• Note: Before you can utilize agreement reserves, you'll need to speak with a FieldEdge Agent to enable agreement reserves in your system.

Instruction

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You'll need to have your agreement plans and settings configured before you enable reserves. Use the below steps to turn on and set up your agreements to use reserves.

Turning on agreement reserves

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1. In FieldEdge click Settings and under the Customers section choose Agreements.

2. In the Reserve section, check the box for Allow Agreement Reserve.

3. In the Reserve Account drop-down box choose the liability account that will be used for your reserves.

• Note: If you are unsure of which account to use, consult with your accountant and FieldEdge Agent.

4. Next, choose the proper income account from the Income Account drop-down box.

• Note: If you are unsure of which account to use, consult with your accountant and FieldEdge Agent.

5. When you are finished click Save to update FieldEdge.

Setting up agreement reserves with bill from the office

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Before setting up this agreement with reserves, you'll want to make sure you have created the agreement and set the appropriate Billing and Maintenance Schedule.

1. Start by checking the Activate Reserve checkbox.

2. Next, choose the appropriate Reserve Starts month from the drop-down box.

• Note: The Reserve Starts month should match the first billable month for the agreement contract.

3. Click Update to save the agreement reserve information. 

This agreement should now have an active reserve and the reserve balance will sync automatically with the selected liability account in QuickBooks. To see the amount FieldEdge will transfer from the selected liability account to the selected income account, click the Agreement Reserve information icon.

Setting up agreement reserves with bill from the field

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Before setting up this agreement with reserves, you'll want to make sure you have created the agreement and set the appropriate Billing and Maintenance Schedule.

1. Start by checking the Active Reserve checkbox.

2. Next, choose the appropriate Reserve Starts month from the drop-down box.

• Note: The Reserve Starts month should match the first billable month for the agreement contract. When an agreement has been configured as "bill from the field" it is recommended that the agreement billing falls on the first maintenance visit.

3. Click Update to save the agreement reserve information.

This agreement should now have an active reserve and the reserve balance will sync automatically with the selected liability account in QuickBooks. To see the amount FieldEdge will transfer from the selected liability account to the selected income account, click the Agreement Reserve information icon.