Managing prepaid balances
Convenient management and accounting of prepaid balances (one-time and periodic)
IT companies often manage the accounting for services by means of prepaid balances—lump sums paid in advance for services used later.
Prepaid balances allow sales representatives to generate business in such a way that “empty” invoices never appear in the system. A prepaid balance also creates a relationship between service and invoice that lasts for a relatively long period. Customers benefit from greater freedom in their choice of billing date and sometimes enjoy cost advantages as well.
Our ERP system SITE offers a wide range of alternatives for creating such prepaid balances. There are both one-time prepaid balances, purchased just once and “worked off” by the customer over a relatively long time period, and periodic (contract) prepaid balances, which are accounted and used on a monthly basis.
It is also possible to create prepaid balances based on service quantities (number of incidents/hours worked/days worked, etc.; see Screenshot 1) or based on a sales value (amount). In addition, a customer can have different prepaid balances at the same time, such as one for training on an hourly basis and another for consulting or support with a certain sales value.
Customer consultants, whether in service or on the commercial side, can use SITE to see at a glance the quantity or amount remaining to a customer for each prepaid balance (see Screenshot 2).
Bottom line: Customers who use SITE’s prepaid balance management can
- sell one-time and periodic prepaid balances
- process prepaid balances by quantity and amount
- see detailed information on consumption of any prepaid balance
Interested in knowing more about managing one-time and periodic prepaid balances in SITE? Give us a call at (+49 89) 748-5140 or contact us by e-mail at easy(at)singhammer.com.
Prepaid balances management requires SITE Version 7.10 or later and Microsoft Dynamics NAV Version 2009 or later.