In the second part of our series on Yardi’s top 5 underused & useful features, Richard Duddy explains how the Service Contract feature in the Maintenance module lets you easily monitor, analyse and manage service contracts.
In Property Management, a service contract is an agreement with a vendor/contractor to provide services and requires regular recurring payments. Think how a business typically hires a vendor to complete cyclical, seasonal or maintenance services – such as cleaning, garbage collection, snow removal, security, etc.
The cost for these services are usually negotiated and agreed upon via a contract. Billing is done on a recurring basis, either monthly or quarterly.
The service contract feature in Yardi is a useful tool that helps you manage and track the billing and payment of these transactions.
In the demonstration below, we’ll use the example of a service contract for security at a building. The annual cost of the service contract is £70,000, billed and paid monthly.
To access the Service Contract feature, navigate to the PAYscan Finance Manager module:
On the PAYscan menu; Select Service Contract > Add Service Contract:
The below page will display and you can complete the filters, highlighted below:
The Contract, Brief Description, Expense Type, Original Contract amount, Vendor and Notes.
Select the billing frequency from the drop-down Frequency menu, then tick the checkboxes for each month that billing occurs.
In the Contract Detail section; populate the fields with the respective property and the applicable account for the service. The start date will automatically populate itself.
Once you’re satisfied the details are entered correctly. Click “Save” – the page will refresh with a contract summary page that displays the monthly rate.
Once you’ve created the contract, this can now be used to post the monthly payables:
Navigate to Service Contract > Post Service Contract on the menu:
The filter page will display. Now you can enter the name of the contract and the period to date – this is the month for which you’re billing. For example, if you’re billing for January, the period to date will be 01/2022.
After submitting your search, the system will display the payable to be posted as below.
Review the details – especially the amount to ensure the periodic billing has been calculated correctly. In this instance, the monthly billing amount is 5,833.33. This is a net amount and tax will be added in the upcoming payable screen.
Once you’re satisfied all the details are correct. Click “Process to Payable” to continue.
The system will generate a payable to an unposted batch which can then be posted for payment.
To retrieve the unposted payables as shown below, you'll need to navigate to the:
International menu > Analytics > Transaction Registers
Once you’ve filtered the search to display unposted payable batches. Select the payable by the control number on the list displayed.
The screenshot below shows the payable invoice generated by the system. This can then be posted for payment.
If you navigate back to the Service Contract, you’ll notice it’s been automatically updated. In the Payable tab, you’ll be able to see the posted payable is listed as shown below:
Every time you post a payable using the Service Contract feature, it will automatically track and list the payable here.
To make things even simpler to manage; the summary figures above also indicate how much of the contract has been invoiced, and how much is remaining to be billed.
This feature provides an easy method for your business to monitor, analyse and manage service contracts.
You can track and monitor the complete billing cycle, review the frequency of payables, and spot any discrepancies across these contracts. For example, if a billing cycle has been missed or skipped, you’ll be able to quickly find it.
It’s also useful if you have multiple contracts with similar billing cycles, you can use the “Post Service Contract” feature to post multiple payables at once which saves time and eliminates the repetitiveness of creating and posting multiple individual entries.
In terms of analysing and managing expenditure, Yardi’s Service Contracts make it quick and easy for your business to see how much has been billed and how much is left. If the cost were to exceed the previously agreed contract it would be readily visible and identifiable.
You now know how to get started with Yardi’s Service Contracts. They give you a simple way to observe, analyse and manage the service contracts your business is using.
Looking for more ways you can take advantage of all the underused features of Yardi? Check out:
If you have any questions or want to share some feedback, please get in touch. We’d love to hear from you.
With thanks to Faith Alori, TopUp alumni, for the content suggestion.
Richard is a Chartered Marketer who is helping TopUp to continue its year-on-year growth. He's very excited about Hydra—your next favourite real estate product!
Want to create reusable templates that optimise your workflow? Richard Duddy explains the benefits and shows how to use Recurring Payables with worked examples.