Pricing Service Agreements

This process is used to create rules for regulating the pricing of service agreement lines.

This is done using contract items which can be connected to price lists, items, individual items, agreement types and agreement order types.

Pricing is simplified during agreement line entry by the automatic entry of a suitable contract item with attached agreement price in the agreement line.

Before you start

The prerequisites for the process vary depending on the rules created. They are created by connecting contract items to:

The price list to which the contract item is to be connected is entered in 'Serv Price List. Open' (SOS017). The contract item is then connected to the price list in 'Serv Price List. Enter Contract Items' (SAS018) using option 13 = Contract items.

A superior item for the individual item must be entered in 'Item. Open' (MMS001). Individual items with connected contract items for service or rental agreements are entered in 'Individual Item. Open' (SOS419).

A superior item must be entered in 'Item. Open' (MMS001) and 'Item. Open Service Supplement' (SOS001). In the latter program, by using option 11 = Contract items in SOS001, a call is made to 'Contract Item. Connect to Item' (SAS460), where contract items are connected to superior items.

It is also possible to connect different contract items and agreement prices to the item depending on the agreement type. However, the agreement types must be defined in 'Service Agrmt Type. Open' (SAS410)

Contract items can be connected to agreement types, which must be entered in 'Service Agrmt Order Type. Open' (SAS455). It is also possible to connect them to different agreement prices, depending on the agreement type. Again, the agreement type must first be entered.

During meter invoicing, contract items belonging to price type 05 are used. Contract items and prices are proposed by default when entering an agreement line according to the above rules, except in certain cases.

Prices for meter invoicing are defined in a meter price schedule per contract item instead of in the price list. This is because different prices can be defined for up to six different invoice meters, and with prices that depend on quantity. The meter price schedule per contract item is retrieved using option 12 = Mtr price sched in 'Contract Item. Open' (SAS450) and copied into the agreement line when this type of contract item is used in the agreement line. The proposed prices can be changed manually for each line.

If aggregate meter invoicing is used for the agreement, a contract item and connected price schedule are defined in the agreement header. All agreement lines will then obtain the same contract item. No price schedule is specified per agreement line. See Meter Invoicing.

Follow these steps

If none of the activities described are carried out, contract items and agreement prices cannot be proposed by default when entering agreement lines.

  1. Entering Contract Item in Price List

    Contract items in a price list are entered in 'Service Price List. Enter Contract Items' (SAS018) by using option 13 = Contract items in 'Service Price List. Open' (SOS017). A price is first searched for in the price list and then from the contract item's price.

  2. Entering Contract Item per Individual Item

    Contract items per individual item are entered in 'Individual Item. Open' (SOS419). They can be entered for either service or rental agreements.

    If contract items are specified per individual item, then they will always be proposed when that individual item is specified in an agreement line. The agreement type for the agreement line regulates which of the two contract items is chosen.

    Connecting contract items to an individual item is suitable when the contract items to be used during entry of individual items are known. It is also suitable when individual items are created by copying from a template containing information on the contract items.

    However, when there are several agreement types with differing agreement prices, then this is not suitable. In such a case the agreement price must be entered manually in the agreement line.

  3. Entering Contract Item per Item

    Contract items are connected to items in 'Contract Item. Connect to Item' (SAS460). This program is accessed using option 11 = Contract items in 'Item. Open Service Supplement' (SOS001). An unlimited number of contract items can be connected to each item.

    When entering agreement lines, the first contract item which matches the specified individual item and agreement type is proposed. In order for this match to occur, the following is required:

    • The individual item belongs to the item number.
    • The contract item has the same classification as the agreement type, that is, both regard either a service or rental agreement.
    • The specified agreement type matches the agreement type for the contract item, which was specified as the only permitted agreement type for the contract item.

    There are several ways to connect contract items to items in order to obtain a suitable proposal for contract item and agreement price when entering an agreement line.

    The first case involves more than two contract items connected to the item. In this case, the agreement price depends entirely on which contract item is obtained. When more than one contract item is used in an agreement, it is necessary to specify the agreement type allowed. This is done for the contract item itself.

    A second method is where only two contract items are connected to an item, one for a service and one for a rental agreement. When entering agreement lines, different agreement prices can apply depending on the agreement type. To manage this, an adjustment to the contract item's price can be entered. This adjustment can be varied for different agreement types.

    In this case, the same contract item is obtained if the agreement type for the agreement line is for a service agreement. However, the agreement price can vary, depending on the agreement type. The portion of the contract item price to be proposed as the agreement price is specified on the agreement line. This can be done for each agreement type. The agreement price can be adjusted upward or downward.

    Additionally, other adjustments can be made to the agreement price. This can depend on the response time applicable to the agreement line. This adjustment is made after the above-described adjustment is made.

  4. Entering Contract Item per Agreement Order Type

    Contract items are entered per agreement order type in 'Service Agrmt Order Type. Open' (SAS455). One contract item can be entered for each service or rental agreement.

    During agreement line entry, contract items connected to an agreement order type are proposed when no individual items or items connected to a contract item are found. The contract item proposed depends on the agreement type for the agreement line.

    Contract items connected to agreement order types are useful if the agreement price is independent of agreement type and individual item, or if it is always entered manually in the agreement lines. They are also useful if the superior item and agreement type regulate the agreement price and when a price adjustment based on agreement type is made.

    Price adjustments per agreement type are made in 'Service Agrmt Order Type. Open' (SAS455) using option 12 = Price adjust. This applies to both kinds of contract items.

    The agreement price can be further adjusted considering the response time specified in the agreement line. This adjustment is made against the agreement price obtained after performing the price adjustment for the agreement type.

Examples

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