prepaid in Service Contract

Dear All,
I am learning service management (SM) now. In the demoscript of SM, I do not still unsderstand about prepaid contract and standard contracts.Does it means payment for service that will be conducted or
just like down payment…?
the statement said “prepaid contracts run from the beginning of a month while standard are invoiced at the end of a contract period”.

Rgds,
Mark

Hi Mark

If it is prepaid it means the service conducted will not warrant a charge, if however it is not prepaid you invoice the customer at the end of the period and chase payment.

I thought it is as same as down payment but for service contract its name is prepaid. But there is no warrant a charge for the service, if the service is for maintenance only like preventive, is it still needed ?

Rgds,

Hi Mark

Could you possibly re-phrase the question as I am afraid I cannot understand it!