Service Contract Overview

ServiceCEO enables you to track basic Service Contracts. Service Contracts allow users to separate the sale of goods or services from the act of providing the goods or services. A service contract consists of a number of Service Contract Lines. Each Service Contract Line contains two things:

1. The Billable Amount - The amount the customer pays for the coverage

2. The Coverage Amount - What the customer receives for their money

The following are some examples of contract lines that can be created in ServiceCEO:

• Customer pays $5,000 for 100 hours of HVAC service.

• Customer pays $10/hour for 50 hours of any service.

• Customer pays $10,000 for unlimited coverage of products and services/labor delivered or performed over a three-month period.

• Customer pays $500 for unlimited coverage of only one of their Dell computers (serial number 12345B).

• Customer pays $500 in advance for $700 worth of labor to be performed over the next two months.

As demonstrated by these examples, contracts may have an expiration date beyond which they may not be applied to jobs. Service contracts may also be restricted to covering only:

• Specific parts (Master Products)

• Specific Labor (Master Services)

• Specific customer equipment (On-Site Equipment)

Before you can use a service contract, you must first enable them in ServiceCEO. See the Enabling Service Contracts section.

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