Defining new Maintenance Agreements and Adjusting Existing Agreements

This document explains how different types of new maintenance agreements are created. The maintenance agreement defines what the maintenance supplier is allowed to do, for whom he may do it and how performed work is to be priced.

The document explains both how to define the values that are common for all parts covered by the agreement (the agreement header), and how to define the maintenance jobs covered by the agreement (the agreement lines). Also explained is how to select pricing methods for time and material.

The process is used when a new agreement needs to be defined for a customer, or when changes need to be made in an existing agreement. You may for example have to change an agreement if a maintenance object not covered by the agreement needs to be included, or you might want to change the pricing method for a job.

Outcome

A maintenance agreement, general or customer-specific or template is defined. The agreement may cover a variety of different types of services with different pricing methods.

Information about the agreement is stored in the following files:

The agreement is used when maintenance customer orders are entered. It gives quick information about:

Before you start

Follow These Steps

  1. Define the Agreement Header for a General Maintenance Agreement

    Define a general agreement to use for occasional customers who want a service performed. The agreement header contains information about for example agreement currencies, the payer, the facility used, the scope of the agreement, the methods used for pricing material used, the maintenance customer order type and payment terms.

    Define the agreement header details in 'Maint Agrmnt. Open' (COS410).

  2. Define the Agreement Header for a Customer-specific Maintenance Agreement

    Define a customer-unique agreement for regular customers. You do this when a customer is tied to your company for different maintenance jobs. You can also use this step when an existing agreement is re-negotiated or changed.

    Define the agreement header details in 'Maint Agrmnt. Open' (COS410).

  3. Define the Agreement Header for a Template Maintenance Agreement

    Define a template agreement for a template customer that can easily be copied to a real customer agreement. The 'agreement type' code must be '9-Template'. A template agreement cannot be used during order processing. Define the agreement header details in (COS410).

  4. Define Agreement Lines with Time and Material as Service Price Method

    Define an agreement line that specifies the service covered by the agreement and how the customer is to be charged for the service. When time and material is used, the customer is charged for the time the job has taken to perform, and for the material that has been used in the service.

    Apart from the maintenance object you specify the maximum and minimum time possible to report for a job, warranty limits etc.

    Define agreement lines in 'Maint Agrmnt. Open Lines' (COS411).

  5. Define Agreement Lines with Meter-based Pricing

    Define an agreement in which the customer pays a fixed price based on the meter reading of the maintenance object at the beginning and the end of a period. The customer is invoiced a fixed amount for every kilometer he has driven the vehicle or every hour he has used a machine during a month. This is also called a power-by-hour agreement.

    Define agreement lines in 'Maint Agrmnt. Open Lines' (COS411).

  6. Define Agreement Lines with a Fixed Price Total

    Define a maintenance agreement with a fixed price total for a service. When this pricing method is used the customer is invoiced a specific amount, regardless of how much time the job took or how much material was used.

    You use a fixed price when you want to give the customer an idea of how much he will be charged for a service. This kind of agreement is best used when you have a standard type service which always takes a certain time to perform and usually has a certain material consumption.

    Define agreement lines in 'Maint Agrmnt. Open Lines' (COS411).

  7. Define Agreement Lines with Fixed Price for Labor

    Define a maintenance agreement in which the labor price is fixed, but the material is not. This means that the customer is charged all material used in a service. This agreement type is suitable when you have a service that usually takes about the same time to perform each time you perform it, but has differences in the material consumption.

    Define agreement lines in 'Maint Agrmnt. Open Lines' (COS411).

  8. Define Agreement Lines with Loan Charge

    Define a maintenance agreement that handles loans of parts in your warehouse. Create this type of agreement when you have a customer who needs to borrow parts for a limited period of time to avoid a shutdown.

    Define agreement lines in 'Maint Agrmnt. Open Lines' (COS411).

  9. Check and Adjust the Agreement

    Make sure the maintenance agreement agrees with the intentions of the customer and the service supplier. The agreement may be adjusted and different types of services may be added or removed. You may need to add a service if a customer has bought a new machine or a new type of machine for which he wants maintenance.

    Check the agreement head in 'Maint Agrmnt. Open' (COS410) and the agreement lines in 'Maint Agrmnt. Open Lines' (COS411).

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