Service Contracts in FalconPro Real Estate Software: Complete Guide
Introduction
Service contracts in FalconPro Real Estate Software provide a structured way to manage agreements with contractors and suppliers for services such as maintenance, elevators, or cleaning. This feature enables property managers and accountants to automate expense distribution, manage installments, handle VAT, and ensure accurate financial tracking for each contract.
Setting Up Service Contract Types
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Go to Administration > Master File > Accounts > Service Contracts.
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The system includes default types (e.g., service contract, maintenance contract).
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You can add your own types and specify:
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Whether the contract has installments or is a lump sum.
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The expense distribution method (monthly, per installment, etc.).
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Creating a Service Contract
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Access Service Contracts:
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Go to the Accounts section and select Service Contracts.
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Click New to create a contract.
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Enter Contract Details:
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Optionally select the building, property, or cost center.
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The first party is your company (linked via company contacts).
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Select the supplier (must be set up as a supplier and linked to an account).
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Choose the debit account for the payable invoice (typically a prepaid expenses account).
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Select the expense account for distribution.
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Enter the contract value and VAT percentage (e.g., 5% for import VAT).
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Set the contract period (start and end dates).
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Define the number of installments and frequency (e.g., monthly, quarterly).
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Add terms, conditions, reminders, and attach files as needed.
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Expense Distribution:
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Choose between distributing expenses monthly or per installment.
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The system automatically divides the contract value (plus VAT) across the selected periods or installments.
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Save and Activate:
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Save the contract. If you lack authority to activate, it remains in draft until approved.
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Generating Supplier Invoices
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For each installment, select the due amount and click Invoice to generate a supplier invoice.
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The invoice debits the prepaid expenses account and credits the supplier account, including VAT as input VAT.
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You can generate invoices for individual installments or all at once.
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The system tracks invoiced and uninvoiced amounts for each contract.
Paying Supplier Invoices
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Go to Accounting > Payment Voucher.
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Create a payment voucher, select the supplier, and choose the relevant invoice.
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Enter payment details (cash, cheque, bank transfer) and save.
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The system updates the supplier’s account and tracks paid and outstanding amounts.
Expense Recognition and Reporting
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The prepaid expenses account is credited upon invoice creation.
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Expenses are distributed and recognized monthly or per the chosen method.
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Use the Expenses Voucher screen to generate and post expense vouchers, ensuring accurate monthly expense recognition.
Reviewing and Managing Contracts
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Retrieve and review contracts, invoices, and payment status at any time.
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Edit contract details if necessary, ensuring the total value remains consistent.
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The system provides full audit trails for all transactions.
Best Practices
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Always link suppliers to the correct accounts in the chart of accounts.
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Choose the appropriate expense distribution method for your accounting needs.
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Regularly review outstanding invoices and payments for each service contract.
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Attach all relevant documents and set reminders for contract renewals or key dates.
Frequently Asked Questions (FAQ)
Q1: Can I customize contract types and expense distribution?
Yes, you can add custom contract types and choose between monthly or installment-based expense distribution.
Q2: How is VAT handled in service contracts?
VAT is calculated on the contract value and distributed across installments; input VAT is recorded with each supplier invoice.
Q3: Can I pay invoices partially?
Yes, partial payments are supported and tracked against each invoice.
Q4: How are expenses recognized?
Expenses are recognized monthly or per installment, moving from prepaid expenses to the relevant expense account.
Q5: Can I attach documents and set reminders?
Yes, you can attach files and set reminders for contract terms, renewals, and other important dates.
