Re: Prepayment

[David Sentinella <..hidden..>]

I think this raises the more complex issue of  "Contract Accounting". In 
such systems, the contract fee is paid monthly or annually in advance (a 
prepayment) and labour and goods against that contract are "included" or 
"excluded". More complex elements of contract accounting include special 
rates for excluded work, pro-rata rebates on items subject to wear and 
tear, usage thresholds.
In view of this, a mechanism for handling prepayments and advance 
payments would solve a lot of problems. We do this by "selling" an item 
which is a monthly or annual charge and it has a specific income 
account. When work is done against a contract, it is billed against a 
parallel client called "Client X contract work". In this way, we know 
which contracts are profitable or not.

I'll watch with interest how this pans out.

Regards,
David Sentinella.



Michael Richardson wrote:
>   For instance, you pay $500/month for support, which you can spend in
> $125/hour chunks on support calls. If you go above 4 calls, you get
> billed more. However, if you go below, you can spend it in the
> subsequent month, but not afterwards.
>
>   
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