The service-to-cash process is a process where a company performs work or provides services upon a customer’s request. The process steps can vary depending on the company business needs. In general, the process starts with a quote and ends with collection of payment for the work performed or services provided.
1C:Drive supports the following service-to-cash steps:
- Set up service-to-cash process.
- Issue quotations.
- Place work orders.
- Monitor work order statuses.
- Complete work orders.
- Issue sales invoices.
- Register tax invoices.
- Receive payment for work or services.
Setting up service-to-cash process
Before you start your service-to-cash process, do the following:
- If you want to sell new work items or services, register the products of “Work” or “Service” type in the Products catalog.
You also have the following options:
- If you are planning to sell to new customers, register the customers in the Counterparties catalog. As you register a customer, you can specify the following:
- Payment terms
- VAT rate
- If you are planning to apply a new discount plan, set the discounts.
When you receive a request for quotation from a potential customer, register a quotation and send it to the customer.
Placing work orders
1C:Drive supports the following scenarios:
- Work order that you fulfill using your own inventory.
- Work order that you fulfill using your own and customer’s inventory.
If you fulfill a work order using your own inventory, create a work order. It is enough to specify only the customer name and general request description. You can add other details later if needed.
If you fulfill a work order using your own and customer’s inventory, do the following:
- Register a goods receipt for the customer’s inventory.
- Register a work order.
- Add the customer’s inventory to the Customer’s inventory tab of the work order.
Note. You can quickly generate a work order based on the source quotation.
Monitoring work order status
To ensure that you perform work or provide services in time, do any of the following:
- Track work order statuses in the Work orders list.
- View the Work orders statement report.
Completing work order
When all work or service activities are finished, do one of the following:
- If you have performed work, allocate hours worked and change the work order status to Completed. Then post the work order.
- If you have rendered services, change the work order status to Completed.
Then post the work order.
In both cases, if you have used customer’s inventory, select Write-off customer's inventory before you post the work order.
Note. Status Complete is the default final status of a work order. You can add custom statuses and apply them instead.
Issuing sales invoices
After you complete a work order, issue a sales invoice for the customer.
Note. You can quickly generate a sales invoice based on a work order.
When you post a sales invoice, the following accounting entries are registered on the GL accounts:
- Liability of the customer
- Recognized revenue
- Sold and consumed assets
Registering tax invoices
If your business process requires, register a tax invoice. To learn more, see Tax invoice issued.
Receiving payment for work or services
As you receive a customer payment, register one of the following:
- If you receive a bank payment, register a bank receipt.
- If you receive cash, register a cash receipt.
Note. You can quickly generate a bank or cash receipt based on a work order.
When you post a bank or cash receipt, the following accounting entries are registered on the GL accounts:
- The customer’s liability is settled.
- Cash balance is updated.
The diagram below illustrates common steps of the service-to-cash process.