Managing Maintenance Customer Order Invoicing

Outcome

• An invoice is printed and sent to the customer.
• Relevant information, such as accounting information, is sent to the financial system. The sales ledger is also updated.
• Payment can be received from the customer.
• MCO statistics can be updated.

For information about updates in M3, refer to the See Also section of this document.

Before You Start

An operation plan for invoicing must be defined in 'Maint Agrmnt. Open' (COS410) if invoicing is to be done on the agreement.

Invoicing for Maintenance Transactions Connected to MCO

This process variant describes the invoicing flow that is used for maintenance transactions that are connected to maintenance customer orders.

1. Check and Adjust Preliminary Invoice Specification

   The invoice specification contains the transactions that will be invoiced to the customer. These transactions are sorted according to transaction type. In this step, you check and adjust the existing transactions, and you can add new transactions. You might, for example, want to add travel expenses, change a material price or change dates on a loan order.

   These activities are performed in 'Maint CO. Check Preliminary Invoice Spec' (COS170).

2. Regenerate Preliminary Invoice Specification

   Regenerate the invoice specification, for example, when agreement terms have changed. Such terms may be material pricing methods, price lists, discounts and so on. Regenerate invoice specifications in 'Maint CO. Check Preliminary Invoice Spec' (COS170).

3. Approve Invoice

   The preliminary invoice specification must be approved before it can be printed and sent to the customer. Approve preliminary invoices in 'Maint CO. Open Line' (COS101).

4. Print Invoice

   Invoice the order by printing it in 'Maint Invoice. Print' (COS180). When you print the invoice, you make a selection of orders to be included in the invoice run. You also specify whether the invoice run is actually going to be run.

5. Transfer to Financial System

   You need to manually transfer information to the financial system if you have not selected direct transfer in 'Settings - Maintenance CO Invoicing' (COS822). This information is transferred in 'Maint Invoice. Post-Process' (COS196).

Invoicing for Meter Based Agreements

This process variant describes how invoicing is done for meter based agreements. Meter based invoicing means that charging is done based on how much an object is used. In this case, an object (such as a bus) is connected to the customer's maintenance agreement. Meter prices that are connected to the agreement define how much is charged per reported meter unit. The company that handles the maintenance on this specific bus charges the customer based on the usage.

In this case, invoicing is normally done at regular intervals. Invoicing is done either for forecasted usage according to the operation plan or for actual usage. A normal process is to invoice the planned or forecasted usage at the beginning of a period. A reconciliation invoice run is then performed when the period has ended. This invoice will cover any positive or negative discrepancy from the first invoice. Such a discrepancy can occur when the object covered by the maintenance agreement is used more or less than what was forecasted in the operation plan.

1. Check Agreement Invoice Status

   You can check the invoice status of the agreement before you perform the invoice run. This check will give you information about what periods have been invoiced and also how they have been invoiced. For example, a period may have been invoiced only based on estimated usage and may have to be updated by invoicing the difference between estimated and actual usage.

   Check the agreement invoice status in 'Maint Agrmnt. Open' (COS410).

2. Print Invoice and/or Reconciliation Invoice

   Invoice the order by printing it in 'Maint Invoice. Print' (COS180). When you print the invoice, you specify what agreement to invoice and make a selection of periods to be included in the invoice run. You also specify whether the invoice run is actually going to be run.

3. Transfer to Financial System

   You need to manually transfer information to the financial system if you have not selected direct transfer in 'Settings - Maintenance CO Invoicing' (COS822). This information is transferred in 'Maint Invoice. Post-Process' (COS196).

Closing MCO lines Connected to Meter Based Maintenance Agreements

This process variant describes how to close MCO lines that are connected to meter based maintenance agreements. This process is normally performed at regular interval, for example once a day, or once a week.

You can close the MCO lines that are connected to meter based maintenance agreements in 'Maint Invoice. Print' (COS180).

Invoicing in Advance

This process variant describes how invoicing is done in advance. You invoice in advance when you want the customer to pay before delivery. The reason could be that there are large amounts involved or long delivery schedules.

The total amount is not normally invoiced in advance since it is difficult to know what a large job will finally cost. Final invoicing is done when the last delivery is done.

1. Enter Advance Invoice Information

   Enter information about the advance invoice in 'Maint CO. Invoice in Advance' (COS102). You specify the advance invoice date and the sum to be invoiced.

2. Advance Invoice

   Print the advance invoice in 'Maint Invoice. Print' (COS180) as a regular invoice. The difference between invoicing an advance invoice and a regular invoice is that you mark the invoices differently.

3. Final Invoice

   Print the final order invoice after the last delivery on the order is done. This invoice will be automatically reconciled against the advance invoices. Print the final invoice in 'Maint Invoice. Print' (COS180).

4. Transfer to Financial System

   You need to manually transfer information to the financial system if you have not selected direct transfer in 'Settings - Maintenance CO Invoicing' (COS822). This information is transferred in 'Maint Invoice. Post-Process' (COS196).

Partial Invoicing

This process variant describes how partial invoicing is done. Use this variant when you want to invoice an order on multiple occasions over a period of time. When you partially invoice an order, all transactions that are reported and are included on the invoice specification are invoiced. The next time you invoice, all new transactions since the last invoice will be invoiced.

1. Invoice Parts of a Job

   Perform partial invoicing to invoice all reported transactions to date. The next time you invoice, all transactions since the last invoice are included. Print the invoice in 'Maint Invoice. Print' (COS180).

2. Close Partially Invoiced Jobs

   Perform this activity when you need to manually close partially invoiced customer order lines. This is done in 'Maint CO. Open Line' (COS101).

3. Transfer to Financial System

   You need to manually transfer information to the financial system if you have not selected direct transfer in 'Settings - Maintenance CO Invoicing' (COS822). This information is transferred in 'Maint Invoice. Post-Process' (COS196).