When dealing with 12-month or annual contracts (ie. Maintenance and Snow services), you can design your Estimates in LMN to capture your pricing for both your Maintenance and Snow portions of your contract.
In just a few easy steps, you can setup your monthly invoice(s) to allocate the correct revenue to each Service Item (ie. Maintenance, Snow).
STEP 1: ENSURE YOUR ESTIMATE HAS BEEN SETUP CORRECTLY
The Services on your Estimate must be assigned the appropriate Cost Codes, in order to be funneled into the appropriate Service Item when exported into QuickBooks.
For example, ensure your Maintenance Service is designated with your 'Maintenance' Cost Code and your Snow Service is designated with your 'Snow' Cost Code (see screenshot below).
STEP 2: CREATE A 'GROUP' IN QUICKBOOKS
Most companies don't want to show their annual customers a separate total for maintenance and snow but they do want to track the revenue and costs to the appropriate divisions. You can do this with Groups (and a little bit of manual work).
By creating a Group in QuickBooks, you can create separate invoice line items (which allows you to separate snow revenue from maintenance revenue), but the group will only show the customer a single total.
- Access your QuickBooks Company File.
- Select Lists > Item Lists.
- Right-click anywhere on your list of Items, select New.
- Under the TYPE drop-down, select Group.
- Assign it a Group Name/Number (eg. 12 Month Annual Contract).
- If you wish to assign it a Description, this information will appear on your Invoice in QuickBooks on a separate line below the Group.
- NOTE: leave the "Print items in group" as unchecked if you wish to show your customer 1 total price for the month. (this hides the breakdown of snow revenue vs. maintenance revenue on the customer's version of the invoice)
- Press OK to complete the Group.
STEP 3: IMPORT YOUR ESTIMATE INTO QUICKBOOKS + ADD GROUP
- Using the LMN QuickBooks Sync Tool, sync your Estimate into QuickBooks.
- Access the Estimate you have imported.
- On a new, blank line, click the drop-down area beneath the Item header and select the Group you wish to add to your Estimate.
- Once added, using the original pricing imported from your Estimate, re-enter your pricing under the Total header within the Group for each of your Maintenance and Snow Service.
- Delete the lines from your original Estimate, so that you are left with only the pricing from your Group.
- Now when you go to generate an Invoice from this Estimate, your % that you enter for your invoice (ie. if a customer is billed on a monthly basis, 1/12th is equal to 8.33%).
- Your Invoice will now be broken down into a monthly payment and allocated to the appropriate Service Item designated for your Maintenance and Snow service.
- You can then Memorize this Invoice and set it up to auto-invoice the customer once a month for the next X number of months so this customer's invoicing is complete for the rest of the contract (for more information on Memorized transactions, click HERE).