Adding Contract Lines

For each item entered on a contract, a line is required. Follow these steps to add a contract line:

  1. On the Service Contract Lines form, select Actions > New.
  2. Specify this header information:
    Contract
    Select the contract for which you are adding lines.
    Contract Status
    The status of the service contract is displayed.
    Service Type
    The service type of the contract is displayed. The codes are set up and maintained through the Service Types form.

    A default value for new contracts can be set on the Contract Parameters tab of the Service Parameters form.

    Line
    The next available unique line number for this contract is automatically generated.
    Unit
    A unit is a complete material composition, including all subcomponents, replacement parts, and/or add-ons. Each unit is identified with a unique alphanumeric ID. This ID can be the serial number of the unit, but it does not have to be the serial number. If it is a serial number, that number does not have to exist in the Service Serials form. This allows you to service units that you did not manufacture.
    Available
    Click this button to launch the modal Service Contract Item Availability form to display how many of the item are in stock and the status of currently rented units.
    Item
    The item number is displayed.
    Description
    A brief description of the item is displayed.
    Quantity
    Specify the number or amount of units/items to be used on transaction, order, and so on.
    U/M
    Select the abbreviation for the unit of measure used to quantify the number of units or items.
    Customer PO
    Select the customer PO that relates to the contract line.
  3. Specify this information on the Ranges tab:
    Start Date
    Select he calendar date when the contract or contract line starts.
    Projected Due Date
    Select an estimated date for when the contract line item will be returned.
    Minimum Bill Thru
    Select a date. The contract line will be billed through this date, even if the contract ends earlier than the date specified.
    End Date
    The calendar date when the contract or contract line ends is displayed.
    Billed Thru
    The date through which the contract or contract line has been invoiced is displayed.
    Start Meter
    The beginning meter reading of the unit or item is displayed.
    Current Meter
    The present meter reading of the unit or item is displayed.
    End Meter
    The meter reading of the unit or item at contract end is displayed.
    Billed Thru Meter
    The meter reading at the time that the last contract invoicing was performed is displayed.
    Allowance
    Specify the value to allow before incurring charges on contract lines. The calculation used the difference between the Start Meter and Current Meter fields.
    As Of
    The date through which the displayed meter ranges are accurate.
  4. Specify this information on the Billing tab:
    Billing Frequency

    See Billing Frequency.

    Price Basis
    Select the method which will be used for calculating charges when invoicing the contract line. A default value for new contract lines can be set on the Contract Parameters tab of the Service Parameters form.
    Rate

    Specify the contract rate. This value is used with the Per fields to calculate the charges for service contract lines.

    Prorate Rate
    Specify a rate if you are going to prorate the contract.
    Meter Rate
    Specify the meter rate for the contract.
    Per
    Select the contract line unit of rate. This value is used in conjunction with the rate to determine the amount of charges to apply to a contract line.
    • Hour: Multiply rate for the contract line on an hourly basis
    • Day:Multiply rate for the contract line on a daily basis
    • Week: Multiply rate for the contract line on a weekly basis
    • Month: Multiply rate for the contract line on a monthly basis
    • Year: Multiply rate for the contract line on a yearly basis
    Include Waiver Charge
    Select this check box to include the waiver charger amount for the contract line.
    Contract Basis
    This field is for informational purposes only and is used by the entrant of the contract line to list the base or estimated amount to be used for the contract.
    Total Billed
    The running total of invoiced charges for the service contract or contract line is displayed.
  5. Specify this information on the Entitlements tab:
    % Of Labor Covered
    Specify the percentage amount that a customer is charged for each labor transaction. As service transactions are posted for the particular unit or item under contract, the system will automatically calculate the price of the transaction based on the percentage not covered. The entitlement calculation can also take into account different percentages based on the service order SRO Type, the Work Code of the labor transaction, or a combination of the two.

    For example, if expenses are completely covered, then the percent of coverage would be set to 100%. If only 10% of transaction is going to be charged, then the percent of coverage would be set to 90%.

    % Of Material Covered
    Specify the percentage amount that a customer is charged for each material transaction. As service transactions are posted for the particular unit or item under contract, the system will automatically calculate the price of the transaction based on the percentage not covered. The entitlement calculation can also take into account different percentages based on the service order SRO Type, the Family Code of the item on the material transaction, or a combination of the two.

    For example, if expenses are completely covered, then the percent of coverage would be set to 100%. If only 10% of transaction is going to be charged, then the percent of coverage would be set to 90%.

  6. Specify this information on the Tax Info tab:
    Tax Code
    Select the tax code, which represents how the sales tax is calculated. The codes are set up and maintained on the Tax Codes form.
  7. The Contract Surcharges tab shows a grid display of surcharges.
    Note: Negative contract surcharges are not supported.
  8. Save the new record.