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 want to differentiate work items or services by characteristics, set product variants. For example, you can differentiate between basic and full car service.
- If you are planning to apply differentiated prices (such as seasonal prices), register various sale prices in the Prices catalog.
- 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
- Discount
- If you are planning to apply a new discount plan, set the discounts.
Issuing quotations
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, Creating work orders. 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 Viewing work orders.
- 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, Specifying work order assignees and Changing work order statuses 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
Track expected payments using the Accounts receivable and Accounts receivable aging reports.
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.
Service-to-cash diagram
The diagram below illustrates common steps of the service-to-cash process.
