Service agreement

A service agreement is an ongoing agreement between you and a service provider stating the cost of the service and the effective dates of the agreement.

For example, you might have a service agreement with Acme Electrical Repair for all electric repairs for your office building. Within your service agreement, you may define beginning and end dates for the service (possibly January 1, 2000 to January 1, 2002) and a standard cost for all electrical services.

You do not create purchase orders for services. Services are purchased in periodic installments which are determined under the terms of the agreement.

During invoice processing, the Invoice Matching application directly references the service agreement to match with the corresponding invoice.