AMC (annual maintenance contract)
What is AMC? A service contract for a piece of equipment, renewed regularly. It sets the service promise you gave the customer (SLA), the planned visits and the renewal dates.
In plain words
Think of an AMC as a service plan for equipment such as a generator, lift, air conditioner or machine. The customer pays a yearly amount, and the service company promises a set number of visits and a response time. When the year ends, the contract is renewed or it lapses.
A worked example
A company buys an AMC for its generator set.
| Term | In this example |
|---|---|
| Contract value | ₹36,000 a year |
| Planned visits | 4, one each quarter |
| Service promise (SLA) | A breakdown call is attended within 24 hours |
| Term | 1 April to 31 March |
| Renewal | Chased from about 60 days before 31 March |
If nobody tracks the end date, the contract lapses quietly and the next breakdown is billed as a one-off repair. Keep the contract terms in writing; for tax treatment of service contracts, your CA is the right person to ask.
Why it matters
- Cost. A lapsed AMC means repairs you assumed were covered are billed, and a vendor who misses visits still gets renewed.
- Deadline. Renewal dates and visit dates are easy to miss when they sit in a file or a diary.
- Risk. Without a record of visits done and calls attended, you cannot show whether the service promise was kept.
See which of your contracts are due for renewal, in one list.
AMC Renewal
Prepares a renewal suggestion for each of your AMC (annual maintenance contract) customers, using the same renewal routine as lease renewals.
Maintain + BuyAMC Vendor Scorecard
Scores your AMC vendors on completed visits and on keeping to the service promise (SLA), and grades each A to D. Its renew, renegotiate or replace suggestion is a simple rule on the on-time share, which we agree with you.
How Kinnow handles it
Maintain keeps AMC contracts with their status (active, renewed, expired or cancelled), a list of contracts due for renewal within the number of days you choose, and a renewal history. Renewing records the new end date and value.
For AMCs you buy, the AMC Vendor Scorecard rates the vendor on completed work and the service promise, and recommends renew, renegotiate or replace. For AMCs you sell, the AMC Renewal agent (in Pact) prepares and chases renewals. Both are validated with each client.
Kinnow can also check, for an asset, whether a job is under warranty, under AMC or billable. When it cannot tell, it says unknown rather than treating the job as billable. See stop paying for repairs you are covered for.
Agents prepare and suggest. A person approves every renewal.
Questions
What is AMC?
A service contract for a piece of equipment, renewed regularly. It sets the service promise you gave the customer (SLA), the planned visits and the renewal dates.
Does Kinnow tell me which repairs an AMC covers?
For an asset, Kinnow checks whether a job falls under warranty, under AMC or is billable. Warranty is checked before AMC. If it cannot tell, it shows unknown instead of billable.
Can Kinnow renew an AMC by itself?
No. The renewal list shows contracts due soon, the AMC Renewal agent prepares and chases, and a person approves. Renewing sets the new end date and value, and the status becomes renewed.
Ask us to set up your AMC list and see the renewals due in the next 60 days.