Client Services represent real-world waste/recycling services, performed by a specific provider, under a given financial structure. Client Services are grouped into different types, including:
- Waste Services
- Commercial Scheduled Service
- Rolloffs and Compactors
- Device Services (Sensors)
- Rental Services (Equipment)
- Management Services
All services have a status to help us know where it is in the pipeline.
- Unexecuted = Services on unexecuted client contract, known as a Location Service Agreements (LSAs)
- Executed = Services on fully executed LSA but not active yet
- Active = Services on full executed LSA that is between effective date and termination date
- Terminated = Services that have been terminated and are no longer performed by a Vendor for the benefit of a Client.
Is Pass Through
Determines if the All In Cost allocated to the service from a Vendor Invoice should be passed through at a dollar-for-dollar (0% markup) on Client Invoices, or if there should be an opportunity for markup/markdown to generate positive or negative margin on the charge.
When Is Pass Through is set to True, the cost of the service (from the Vendor Invoice) is passed on directly to the client invoice on a penny-for-penny basis; Pricing is 100% transparent between the Vendor, Management Company, and Client. Approved Vendor Invoice charges are always offset in revenue by Client Invoice Line Items (typically as a Billable Expense if the charge originates from a Vendor Invoice).
When Is Pass Through is set to False, the system allows for different fee structures between the related Client and Vendor Services. The fee to the customer can be higher or lower than the fee charged from the vendor. For these services, Clients do not know the sub-contracted costs the Vendor charges for the Service.
Example: Currently, 1 dumpster picked up 1 time per week is $1000 from Waste Management. The customer agrees with the Management Company that the new price will be $900. Three months later, the Management Company signs a new contract with the vendor and the new vendor cost is $600, creating a $300 positive gross margin for the Management Company.