Initials Software Maintenance Agreement Template Made Easy

Initials software maintenance agreement template

welcome everybody it's me James leichter thanks for coming to another training session let's talk about support agreements service agreements there are lots of ways to handle service agreements there's ways to manage the money there's lots of business decisions that need to be made that are beyond the scope of tech support in apt aura now if you were to google my name service agreements you'll find that I've written and published a lot on the topic there are dozens of articles that I've written out there if you just simply google my name service agreements then you should find lots of advice on pricing selling how they improve your company's morale cash flow how they increase the value of your business and also how you can go broke selling service agreements I will teach you how to go bankrupt selling service agreements really actually what I'm talking about is how service agreements can cause companies to lose a lot of money if they're not done properly but as far as I'm concerned service agreements are absolutely critical absolutely critical it's one of the handful of things that you absolutely should prioritize with that in mind let's talk about them to get started with a service agreement you first have to create service agreements to sell we might open up our invoice items list now I've created a filter under global filters called service agreements and if I click it I'm able to see my service agreements if you're not using these filters please do they're fantastic you simply go down here click new filter give it a name set your parameters you'll love them so here I have multiple service agreements we create a service agreement by creating a new item now the first 10 minutes of this webinar are going to cover the most confusing thing about service agreements to create a service agreement you select service agreement type here and you should give it a category I'll skip that for now so the first thing you're doing is creating something to sell to people this is not a service agreement that you're creating for the customer that's the confusing part is it's a two-step process we have to have something to sell first then we put this on an invoice and we actually fill out the paperwork the service agreement so let's talk about the paper version of all this before you got software to do it for you you know back when I got started I carried an aluminum aluminum forms holder and you open up that aluminum folder and inside there we had invoices and I filled out the invoice for the service call and then I might have said to you would you be interested in in investing in one of our safety and efficiency agreements a service agreement and if they bought one I filled out the service agreement form I wrote on the invoice service agreement 199 whatever the price was whatever the item number was so I put the service agreement on the invoice a paper version of one of these right and then I filled out the service agreement and it had the model number serial number and so forth on it so what we're doing is were first creating something to sell and let's look at one that's been created here I have a service agreement that I call se AR es 3 that stands for safety and efficiency agreement residential 3 visit and I give the whole thing a description right here I establish a price that can later be edited I establish a default discount that can be changed later and then I decide on the number of visits and the term in months now if you sell a service agreement that lasts one year and then it expires obviously we're going to put in 12 months what if you sell a service agreement that goes on every month in perpetuity and the customer has to cancel you still have to give it a term and you might decide one year 36 months a hundred months you can always extend that number later and I'll show you how but you do have to enter something it's a required field regardless of how many pieces of equipment this service agreement covers you should have one agreement for one or more pieces of equipment you would just change the price accordingly so it may be $1.99 for one system and then it might be another 99 dollars for each additional system at the same address but we recommend that you have one service agreement no matter how many pieces of equipment but you will have to have different service agreements depending on how many visits you're offering and possibly the term you want to the service agreement a description here which describes the actual service agreement to the reader and you give it a description that describes what the customer is getting this is what the customer will read and if you give them a discount for owning a service agreement the software is going to create a discount item automatically and this is the description that you will give them so that's the description that'll show up on the discount item and you'll see that in a minute finally on this tab we have one more thing to consider labor minutes how many labor minutes do you think it will take to do this work it's an option you'll notice when I hover over certain things a tooltip as it's called pops up now you may say to yourself how will I know how long this is going to take it's your best guess it isn't used for accounting purposes it's just FYI it's used for different things in the software that we won't really get into today it's not critical now again you can create as many of these as you want we do have clients that create a service agreement for two pieces of equipment three four five six eight ten that's fine the software is very flexible but we typically don't recommend that but you certainly could just be sure to describe what you get and don't get in these fields let's look at the accounting tab here your Salette income account that's tracking your income you select your cost of goods sold account now the cogs account isn't used very often in the software because you're not actually buying a service agreement but you should pick a cogs account in case it is needed but remember you're typically not buying a service agreement from anybody you could possibly buy one from a third party but it's unlikely you're providing these with your own technicians here you have a tax code just like these things are just like you've seen on other inventory items on any other invoice item here's what you haven't seen if you haven't dealt with service agreements you have an escrow holding account and you have an escrow method if you don't see those then we should visit preferences and talk about those under company preferences there is a escrow accounting option with it turned on you will see these two features as long as we're in here let's be sure we cover these real quick allow duplicates service agreements generally we don't recommend that what that should actually say is allowed duplicate service agreement numbers that would be a better description the tooltip mentions that automatically add service agreement discount that probably is a good idea when you create an invoice it will automatically add the service agreement discount to the invoice or work order disable automatic service agreement numbering the software numbers the service agreements automatically it's probably a good idea to leave that unchecked do not include vendors in the sold by selection if you hover over that you can see what that means if you don't have 1099 salespeople which are technically a vendor then you probably don't want your vendors showing up in your sales rep field so you would probably say yeah don't don't include that service agreement batch renewals should now we're going to talk about the batch renewal feature in a moment we have two options the batch service agreement renewal should create a new service agreement or extend the dates on an existing service agreement think back the paper method when a customer says I would like to renew my service agreement if you pulled out their old service agreement and you crossed out the expiration date and wrote in a new date and maybe got them to initial it then you would probably want to extend the dates on the service agreement but most of us never do that right we typically pull out a new form and we say to them here's your new form here's your total investment please sign here so generally you want to create a new service agreement on the expiration date another thing to think about is when do they expire do they expire every year and then you have to actively renew them or do they go on forever as we talked about earlier if they go on forever the choice isn't so important but you might say I want to extend the date of the service agreement those are the only preferences so here we have escrow holding account with the escrow feature turned on the software does not recognize income until you do the work there's another choice I'll tell you about in a second but the escrow feature is terrific because what it does is it defers the income and allows you to keep up with what accountants call the matching principle where you're matching income to costs of goods sold and/or expenses and that's a good thing you want to do that you don't want to sell a service agreement today recognize the income today when you haven't done any other work generally we recommend that the escrow feature be turned on so an example of tech support versus consulting tech support would tell you what it means but never advise you on whether you should use it or not because that's a business consultants job or an accountant sometimes they're both you know accountants can be consultants oftentimes accountants are not good consultants but that's really not a tech support question is should I use it what do you think what account should I pick they wouldn't tell you that now generally speaking if you hover over this it'll say usually a liability account this is where money is held until shifted into an income account so if you were to collect $500 for a service agreement that $500 goes into the bank and it shows up on your income statement as an asset so we debit cash on hand the bank account and then we need to credit something so what you might want to do is you might want to create an account to hold that money and then the software will shift that money for you depending on the escrow method now there's two options we only have one option available because this item is in use and once you use this item you can't change it we'll create a new one real quick here so we can see the other option we have two options we can match the money with the work orders so when they work order date arrives the money will be moved if the work order is postponed or delayed that's fine the money only moves on the date of the work order by the way it moves whether the work order is is completed or not so the movement gets created behind the scenes now when you sell the service agreement the movements are created behind the scenes instantly but they are dynamically attached to the work order so that if the work order dates change so will the movements or you could create monthly movements where we take the money and divide it by 12 if there's an extra penny its put on I believe the first month so that way you would take 199 dollars in this case it would take 199 dollars and 99 cents and divide it by 12 and those become the movements and they move every month on the first the first day of every month and those are created behind-the-scenes now let's talk about where those are if we come down to customers service agreement list right under service agreement list with the preference turned on this menu will show up service agreement escrow movement these are all the movements that are created now keep in mind many of these could be future dated and if you were to double click on one you can see it it is basically an adjusting journal entry you'll notice though some of the fields are not editable you can edit the date in case you have to fix it you can edit the memo you can edit the department that's it and we did that by design because we don't want this getting messed up so that's where you can find your movements and why would you want to look at them you might have to fix something you might have done something you didn't want to do and you need to deal with it if you right-click you'll notice that you can also delete them just be real careful be careful deleting them if you do delete them you can't bring that escrow movement back you can't bring it back what you would have to do is you would have to enter a journal entry if you wanted to put it back and the journal entry would do the same thing to your accounting you'll notice that the accounts are picked right here so an adjusting journal entry will do the same thing but you cannot create a new movement in this list that options not available if you have questions make a note of them just think about your question jot it down so I can hit them all at once the rest of the fields on this forum are the same as if you were dealing with most other things like an inventory part so I won't get into the various other things on this form because they're not specific to service agreements I do want to remind you about your notes feature this is where you can add notes about the service agreement so you might want to put in notes here about what you will do what you won't do notes for the technician etc the customer generally won't see these so these are for internal purposes you might also want to add documents to this item this is where you might add your 33 point precision tune-up professional cleaning checklist so you can add as many documents as you'd like if you are a mobile user those might be very handy because you could go into the document link and open it and you'll have your checklist you might also want to have a checklist built in apt or a mobile form builder where you could build a checklist and fill it out from your mobile device if you don't own apt or a mobile form builder it is an add-on to mobile and it does come free with our hosting plan but you might want to look into that I won't be getting into mobile at all because there's enough to do here let's close those and let's create an invoice so we had an opportunity to sell one we're gonna find a customer and I'm gonna find me I'm in here dare I am and those are notes popping up that are related to the customer maybe the dog bites don't let the cat out I'm over my credit limit I have passed you invoices hey this is a story of my life all right so here I am now the diagnostic fee was added automatically as you might know that happens to be a feature in the software and I'll just type in a date and a sales rep has been selected because I have a default the purchase order that's the customer's pio and maybe it was James he said he would do it he said he'd buy it now we need to add this service agreement to the invoice maybe we went out on a service call and we said hey I noticed you don't own one of our safety and efficiency agreements your total investment is just $1.99 and if you were to invest in one today I will waive the repair fee because it was a minor thing that was pretty easy for me to deal with and my boss will allow me to waive it if you owned a service agreement so what I can do is I can have you invest in a service agreement today we'll just pretend like you've already had it and I'll waive the repair charge today so notice how I use fee and charge to my advantage and they say well that's great I'll do it and we sell it now when you open up the list you'll notice that some of these are highlighted some aren't the highlighted rows are the ones you probably need to pick they're highlighted to tell you their service and not the discount let's say we sell them a three visit service agreement and we'll make today the first visit and we'll come back in six months and do the second visit and come back in six months and do the third visit and now we're ready to renew it unless it's perpetual that's why we have a three visit so we can sell a three visit today and then wave the cleaning fee so here's my three visit that I have on here and I'm going to collect the diagnostic fee but that's up to you that's your company's policy right and I might I might put convert converted demand service to se a sale so we went there on a demand service we converted them to an sa sale so that's it we're ready to finalize the invoice now in the field we probably would collect money should so we'd have a little more to do but we're just going to call it good for now and hit save and close now it tells me they already have a service agreement I pick somebody with a service agreement generally you wouldn't see this right it also tells me they have reimbursable items we'll ignore that for now that's another feature for a different webinar this customer you've selected has item reservations pending that's a preference to a feature for another webinar and then finally it says to me you sold a service agreement you now need to do the paperwork so remember earlier we were talking about pulling out an invoice in a pin and filling it out and then saying hey would you like to invest in a service agreement I sure would and then we pulled out another form and filled out the paper agreement well the computer the software simply telling us that's what you need to do you need to fill out the paperwork it also is telling us about the other service agreements that they have owned or currently have in effect you probably won't see this I'm in a demo database and I use this person myself in here all the time normally you'd click ok and you probably wouldn't see this but if you do what it's doing is it's showing you expired service agreements that you can renew you can hit edit si and you can renew an existing service agreement I generally don't like to do that because it makes it harder to calculate my renewal rate but you could pick edit it or you would click new si typically that's what I'd recommend you see why tech support explains features and functionality and where to find them but not which one to pick how to pick it because they own those decisions and those decisions have to be based on lots of experience knowledge know-how asking you questions understanding your company so there they'll just tell you what button does what hit new sa pop-up note on the service agreement that's a preference I'm getting the same warnings when the service agreement comes up and here it is now what it did is it filled out most of it for us service agreement number is up here it's editable the status is pending the status is pending because we're not within the date range here otherwise the status would typically be active or it could be expired depends on the date range but pending just means that we haven't got to that date range yet if we're past the date range it would say expired the type of service agreement it can be changed but typically you wouldn't do that but you could change it in what are these well those are the service agreements that we just created or that we talked about creating if we go to the invoice items list and filter by service agreements that is the same list that you're seeing here it filled it out for you because that's the type that you sold that you could switch it here you generally would not sold by it grabbed the sales rep from the invoice but you could change that if somebody else is supposed to get credit for this the bill too address is read-only you can't change it that have to be changed elsewhere the customer department and the customer sales rep will be populated from the customer information when we save it projected labor minutes we saw that earlier when we created the item its editable here so it could be edited and why would you edit it it may be because you are extending this to a third second or third year you're adding extra equipment etc so you could edit that if you want to change the term ends then you need to check this little box to override it and you might want to do that if the service agreement needs to be prorated or it needs to take effect in the near future and you said I will go ahead and start it today or your company might consider having all of your service agreements expire to three or four times a year some companies that we consult with for example twice a year all of their agreements expire so they might sell a six-month agreement they might sell a two-month agreement it all depends on when it's going to expire that way they have two three or four different expiration dates where they send out renewals or they renew them plan visits is three that's not editable terms is not editable because that came from the item setup if you have three visits planned well we haven't completed any of them so completed as zero not completed that's about to say three when we save it in other generally you won't see anything in other but what other is as you can see from the tooltip those are work orders that are associated with a service agreement but are not designated as a plan maintenance so in other words we have other visits that are not related to this service agreement and we would if we had other service agreements for this customer which we did as we know user-defined fields I won't get into that because that's just like what you've seen elsewhere this service agreement is a renewal if you are renewing a service agreement or you realize you didn't renew it you created a new one and you forgot to renew it you didn't know that you had an option to renew an existing agreement you can always tell the software this service agreement is a renewal so just check that box now I have a trick for you that's documented somewhere deep inside the fine print of our help system I think if you push shift control and double click on this label a box will pop up and that will allow you to type in the service agreement number that you are renewing this is handy again when you forgot that you could renew an agreement and you're finding that you wish you had you wish you had that data it looks like you don't renew a lot of service agreements because you've been creating new ones all this time and not doing a renewal well you had the ability to go back and fix those just check that box and type in the service agreement number there is no lookup available here you'll have to enter that number and then you will save that prior to moving on so MOU if you weren't aware of that let's go to menu first thing we need to do is save it before we go any further I like to save a lot so now it tells you the invoice number and the date that this service agreement was sold from and you can double click that label if you need to look at the invoice we now know the customers Department the sales rep those got filled in will click menu and by the way not completed is still 0 notice that we're about to fix that we'll click menu first thing we want to do is select the equipment that the service agreement covers and I might say that it covers this and it covers that and here you should have a list of all the equipment this customer owns whether you sold it to them or not and you'd pick the things that are covered under the service agreement like the condensing unit the furnace the evaporator coil the water heater is the thermostat covered then you might put the thermostat in the customers equipment why would you want to do that well thermostats used to be so cheap I never thought of them as equipment but now they get expensive and they have serial numbers so I like to put them in as customer equipment for better tracking purposes so now we have our equipment selected we have a copy feature by the way if you are doing a bunch of these without an invoice like you're playing catch up if you're new to total office manager and you're just putting in these service agreements by hand you can copy this to make it easier on you if you want to renew an existing service agreement you would click this option and it will create a copy but the copy will be renewing the agreement that it spawned from creates an exact copy and it checks that box for you that box becomes uneditable down here it's checked for you and it knows it's a renewal so this is a place where you can do a renewal - typically you would do this from an invoice you would go to the invoice and sell them another service agreement and you would hit the renew option that we saw earlier from the invoice this is if you have to play catch-up we add notes just like we would add notes all over the place you can put in notes here like for example what's covered special circumstances etc we don't really have any history yet we haven't done anything with a service agreement but this would show you the escrow movements work orders estimate sales that the service agreement is related to it doesn't show you the original sale it shows you every sale after that where the customer received their precision tune-up or service calls covered under the service agreement finally we come down to create this by the way is just shortcuts create as an option you can create things from this service agreement such as an invoice a sale a credit an estimate or start adding equipment because maybe you had no equipment to select want to show you and focus on is not a one-time work order I want to create the planned maintenance work orders this form is where the software will automatically create the three work orders now remember in the scenario I talked about earlier I pretended as if we did our first tune up already I'm gonna cover that so we went to their home said ah this would have been free if you owned a service agreement we sold him a three visit agreement we made today's visit the first precision tune-up and professional cleaning the service agreement at this point doesn't know about that so it's going to make us three we decide on the priority the work order type here it might be preventive maintenance it might be service agreement it just depends on what you want to do the description remember these are forward-looking work orders they're going to be dated in the future how do you want to describe the work order what's the the general description the brief description is we call it and it might be precision tune-up professional cleaning under and that's enough typically under an SE a and that may be enough and who's the tech well maybe we don't know so we can leave it blank and what department is it well it's suggesting the demand service department because that's the department that came over from the customer but in this case it really doesn't belong to that department it belongs to maintenance so I would look at my residential HVAC department and yours they're going to look different but this is our recommendation I'll look here residential HVAC demand service maintenance that's the one I want that will be the department on the work order if we had added notes to the service agreement and earlier we looked at the menu and saw notes if we typed in notes there we had the option of copying those notes into each work order now this little label down here kind of gives it away you could just read this and I could stop talking that gives it away your next step so if you forget just read that but what you're going to do is you're going to click Auto and it created for us three work orders it really doesn't know how to date them so it takes its best guess the first work order was dated the same as the invoice and that was a good guess because we performed our first precision tune-up under this scenario that I've drawn for you we performed our first one so that's a good guess the second and third maybe that's a good guess I don't know we can lead those alone or we can change those dates because it might be six months from now and it might be six months after that but I do know one thing the first one is completed so I have an option to complete it right there so it's going to create the work order for me and mark it is completed and that's good because now we have a record of it we have a work order that represents the work that we did when we went out there now we still might have the original work order for the demand service in addition to that another work order gets created and its marked as completed that's important because now the software will tell you you've completed one out of three you have two left so we'll mark that as completed and now we're ready to say okay because we're done here created plan maintenance would you like to automatically add a discount item to the work orders yes I would three have been created at that point this form will open up and it just gives you another chance to see what you've created and if you realize that you want to do something else you can always change them like for example you might want to assign different technicians and you were only offered the opportunity to select one for all of these now you can double-click to open them and change them around now if you're curious where do these go will they show up in your work order list and they also show up on your schedule board is unscheduled work orders they're unscheduled status is shown right here remember what defines that status a work order is unscheduled when you don't have a date a time or a technician you have to have all three of those things so we'll close now one thing I forgot to show you earlier when we went into the Planned Maintenance form it showed us the escrow movements we saw the dates of the movements and they're following the dates of the work order if I were to go modify the work order dates it modifies those movements and I also noticed it added the penny at the end I said earlier it was at the beginning or the end it put the extra penny on the last movement and we get calls on that we as people say where's that where does that money go where's that penny go so that's on the last movement and we should see those movements now here so we have new movements James leichter right there and if we open it there's the movement and remember the date is determined by the work order we changed the work order it changes the date you can also change it here if you have to generally you would not get in here unless you're fixing things so the average user shouldn't be given permission here to get into this only your accounting people should be getting into that you can really mess things up that's it so the service agreement was completed the work orders are done and that is about all there is to it a couple points to remember is it's important to deport mentalize your company you really want to have departments set up in my case I have a division called residential HVAC and I have maintenance here and maintenance is my service agreements everything else for service work anyway is called demand service meaning they called and demanded it I have no heat I want somebody to come out here and and clean my system so I have demand service which is your typical service call and then I have maintenance and that's work we do on a regular basis under the service agreement coverage now let's take a look at a few other things must go to menu customers and remember we have lots of shortcuts we have a strict three mouse-click rule let's go into the customers history and let's go to service agreements there they are the service agreement we created today is in here it's pending because we haven't got to those dates yet and we can open that up just by double clicking but of course it's already here once we're in here we can go look at the equipment that was selected you can go to your equipment tab and you can double click on a piece of equipment go to menu go to history for that equipment and you'll be able to see the service agreement that covers that equipment and there it is and you'll be able to see all the work orders for that piece of equipment service agreement or not and you'll be able to see all the invoices for that piece of equipment including the invoice that sold the service agreement you'll be able to see all of those there another thing I want to point out is the work order list let's do show all real quick all right so we got a lot of work orders here and your company you could have hundreds of thousands of work orders we have plenty of clients that are approaching a million work orders you need a good way to sort them out you can go to the quick filter and use it and that's typically good enough but remember you can also just come in here and just say look show me not completed and get rid of a lot of them and then you could create a global filter if you search for the same thing on a frequent basis create a global filter such as preventive maintenance and then you can see PT PC as part of an SCA you can see that I've got those here and I can filter further using the quick filter what I'm getting at is if you want to go find those three work orders that we just created it's easy to do that and if you want to keep your eye on work orders under service agreements it's easy to go in and create filters for that let's open up a work order that we created and talk about a couple things specific to selling service agreements the general tab shows us that brief description that we entered nothing's been entered into the details it wasn't assigned to anybody etc under notes we automatically entered created from service agreement number 216 just FYI just so that tech knows it there's other ways for the tech to know it but we put that in there probably because somebody wanted it there years ago there's a box check here planned maintenance that tells you that this is part of a service agreement so we know that this is part of a service agreement this work order what department maintenance equipment tab we see the equipment that's covered and nothing else is really any different this is this stuff here does what it does service agreement or not maybe with the exception of the software said do you want me to add that cert that discount automatically yes I said and it put it in there now this work order I just noticed isn't the one we created earlier it's a different one but I noticed because the item is not the same one res two versus res three but that's what it does it puts the discount in there and that's the difference between a work order created by hand perhaps and a work order that was created as part of planned maintenance service agreement sale service agreement yes is all over the software you'll see that in most places and you also have the ability to make sure that that's a column in your work order list these columns here are available by just checking the box and you might find these very handy because all of those can be filtered on searched on etc like callback is it a callback who is the callback on do they have service agreements yes or no is an invoice has it been invoiced yes or no has the work order been invoiced yes or no does it even require invoice let's go look at that we open up a work order and one option is no invoice or sale is required when you check that box the software is satisfied that you don't need to create an invoice for this work order so that not only tells the user you don't need to create an invoice for this work order but it also tells the soft where that it isn't needed and that answer could be a column you could add that column just by going back to that show columns preference list and it's in here somewhere in voiced right there there it is now it has a little asterisk next to it telling you that you should keep it unchecked unless you need it cuz it'll slow down the performance of the work order list it has to go figure that out anything with an asterisks slows down the list because that's information that the software has to go find or has to calculate but if you need it great just check the box and there it is in voiced yes or no and then we have one for does it even need an invoice now as a consultant not a tech support person because this is consulting I recommend you always have an invoice even if it's no charge if you have to go out and make a repair for free because it's covered under a service agreement and this is true if it were warranty work or a call back you should still completely fill out the invoice and then the service agreement discount if it needs to be zero or take it down by 15% bottom line is you should always have an invoice and a work order whenever you send service technicians out into the world to do things they should have a permission slip we happen to call a work order and they should have to fill out a report on what they did and that's called an invoice always have a work order always have an invoice and with that you now know how to manage service agreements and total office manager I will unmute everyone to see if there are any questions okay everybody's unmuted did anyone have any questions about service agreements nobody well I did a fantastic job then hopefully that was helpful oh yes someone does Marlena your mic should be live go ahead oh she says she cannot speak okay now you're live hi there I sure do I get a lot of calls from companies where their technician is out in the field trying to create the number one they've already filled the service agreement so they've already applied it to the invoice and they want to know if now the technician has the ability to auto populate I see if I don't populate it when you click the auto button in time but is that how you do it in the field from the mobile device as well as there are Auto button no no so in the mobile app you don't have the ability to do what I called all the paperwork you don't have the ability to create the service agreement to create the planned work orders etc the reason why is we never consider that to be we never did consider that to be a programming priority because most companies don't picture a service tech doing clerical bookkeeping work because they are very expensive they need to be billing people they need not to do paperwork they're not any good at doing anyway so that's work that is better served for the people in the office now one thing I should point out is in your invoice list you should have a filter called mobile invoices we don't create that for you you create that yourself and that way you'll be able to see all of the invoices that had been created in the field you then open that invoice and when you hit save and close this gives you a chance to examine it is it correct is everything good nope the stage wasn't filled out I got to do that now when you hit save and close it'll ask you if you want to do the paperwork just like we saw before but that's work that the office should do and not technicians that need to be out billing people for their time users are trying to track down the money tied to the work order movements and then maybe maybe the money doesn't move with the movements because I'm still trying to understand I know that one user used the transaction by account and they put I guess their income account in there to track the escrow movement but then I was trying to get an understanding from Kevin he said that only shows like the decide where the money comes out and not the other side so can you tell me what reports you would recommend if they're trying to track the money that's coming out of these accounts times of these escrow movements and also without escrow sure so that requires a little bit of basic accounting knowledge so if you think about go back to your chart of accounts and you think about what a chart of account does we have an income account we have a cog account and the question is well how do you track the income and especially how do you track the cogs well what costs of goods sold were there did we sell them an air filter if we sold them an air filter then we would put the air filter on the invoice and maybe they don't have to pay for the air filter it's included but if the department on the invoice is maintenance or service agreement or whatever your costs of goods sold will go up the cost of that air filter and it'll be applied to that particular department so what costs of goods sold account is it I don't know it's whatever you picked when you put in an air filter and what if you sold them per me question that's right no you don't know let me know No now keep in mind you're not alone and I was abrupt to get your attention you're not alone remember you sold the service agreement you're done with that what does it cost you nothing hasn't cost you anything yet you haven't done anything but when you go out to do the work you're going to be entering a time sheet and when you enter a time sheet you're creating a cost of goods sold labor well what what for whatever work order you picked that work orders associated with that service agreement you also gave them an air filter they're free they're included but they cost you money so you put the air filter on the invoice even though it had a zero price it might have if that's your policy whatever you put on the invoice to do the service agreement today that's creating your cost of goods sold the help ya and that's common that's a common that's a common question is where where are the cogs coming from and it'd be no different if you sold them a furnace there aren't any cogs until you actually start buying things and putting in that furnace so be sure the key for all of you out there all of our customers have to understand it's really important to have a good department list set up it's really important to have a good set a chart of accounts it's really important that you track inventory and you don't overuse the non inventory part which doesn't create a cost of goods sold when you do the work it creates a cost of goods sold immediately which is not good so it's really important to have departments to have a great chart of accounts and don't abuse the non inventory part use inventory parts as much as possible and then finally be sure you're using time sheets be sure you're using time sheets that's really important all right other questions I see a comment from one of my co-workers it's a good comment utilize the power of the accounting program that's right you know honestly frankly you spend a lot of money to get this software and you need to take advantage of all that power if you were to open up these menus here you would count up over 500 forms now certainly some of them are more important than others but it's really important to take advantage of the software service agreements equipment department lists get a good chart of accounts by the way if it's time to update your chart of accounts will tech support help with that no tech support will tell you what a chart of account is where to find it but they won't give you any advice they shouldn't give you any advice on setting it up fixing yours cleaning up etc that is a business consultant with accounting knowledge that is our training department or our a tax and accounting we can help you with that but we just can't help through tech support does anyone have any final questions or comments right well I appreciate everybody being here and I hope now there's a better understanding of service agreements and please let us know if we can help in any way would be glad to do it thank you