Field service income reconignition?

Yahoo Archive
1
Why don't you put payment arrangements on the invoice with service amount payment at a later date.
Ephraim Feldman
Programmer / Analyst
Axis Lighting

-----Original Message-----
From: Dan Shallbetter <dans@...>
Sender: vantage@yahoogroups.com
Date: Mon, 9 May 2011 21:01:24
To: vantage@yahoogroups.com<vantage@yahoogroups.com>
Reply-To: vantage@yahoogroups.com
Subject: [Vantage] Field service income reconignition?

Pre-qualifier: I have no financial background

We build large projects that we do field service start up work on . The field service charges are included in the sales order line We invoice customers the full project amount when a project ships they short pay the invoice based on an agreed amount for the field service work. The outstanding balance shows up in A/R aging reports and customer statements. Makes relieving WIP straight forward and the higher sales number helps support our line of credit borrowing basis. The bank is provided a projected payment date on the hold back that usually satisfies them as to why the invoice is so old. The other obvious method would be to put field service on a separate line on the sales order and recognize the income when the start up is complete it's a timing issue that only becomes an issue at year end. Any other creative ideas?

Thanks.

Dan Shallbetter
States Mfg.



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2
Pre-qualifier: I have no financial background

We build large projects that we do field service start up work on . The field service charges are included in the sales order line We invoice customers the full project amount when a project ships they short pay the invoice based on an agreed amount for the field service work. The outstanding balance shows up in A/R aging reports and customer statements. Makes relieving WIP straight forward and the higher sales number helps support our line of credit borrowing basis. The bank is provided a projected payment date on the hold back that usually satisfies them as to why the invoice is so old. The other obvious method would be to put field service on a separate line on the sales order and recognize the income when the start up is complete it's a timing issue that only becomes an issue at year end. Any other creative ideas?

Thanks.

Dan Shallbetter
States Mfg.



[Non-text portions of this message have been removed]