Price Adjustment of Service Agreement

This process is used to adjust or simulate agreement prices entered in an agreement. Prices can be adjusted according to a percentage or an index.

Before you start

The process can be started when the following prerequisites are met:

Follow these steps

The process includes all price adjustments, using either a percentage or an index.

  1. Price Adjustment

    Price adjustments according to an index are made in ‘Service Agrmt. Adjust Price by Index’ (SAS500). During such a price adjustment the index to be updated and new index value are specified. Then new prices are calculated using the specified index according to the formula below:

    New price = (Old price x New index value)/Old agreement index value.

    The old index value is retrieved from the agreement header or lines, depending on what was selected when the price adjustment was requested.

    Percentage adjustments are made in ‘Service Agrmt. Adjust Price by Pct’ (SAS510). During such a price adjustment the new prices are calculated according to the formula below:

    New price = Old price x (1 + adjustment percentage)/100.

  2. Updating Agreement Prices

    Agreement prices are updated according to one of the above formulas when updating has been selected. If price adjustment with an index was selected, the new index value will be entered in the agreement header and updated agreement lines. Each line contains two index values. The first one refers to the original value of the index during the first invoicing; the second one is the current index value for the agreement line. Only the latter value is updated during indexing.

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