Enter Contract Item

This procedure is used to create contract items used to regulate agreement pricing, account entry, statistics, etc. for service agreements.

Before you start

Before you can begin, the following prerequisites must be met:

Follow these steps

Follow the steps below to enter a contract item:

  1. Select program 'Contract Item. Open' (SAS450).

  2. Enter an ID and a name for the contract item.

  3. To track contract items on a combined level in invoicing statistics, specify a special item group, product group and/or service expense type for the contract item. Account entries made in connection with agreement invoicing can be regulated according to item group and product group.

  4. Specify the normal sales price if the pricing code will be set at 0 in step 5. Different prices can be specified in a price list which override the normal sales price.

  5. Set the pricing code. Enter 0 to use the sales price specified in the contract item or that on a price list as agreement price. Enter 1 to retrieve the price from the sales price listed under the item for the individual item in question. For more information see Pricing Service Agreements.

  6. Specify the price type. Enter 0 if the price is a monthly price, 1 if it is a yearly price, or 2 if it is a daily price. To use the contract item for meter invoicing, enter 5 as the price type.

  7. To create account entries and statistics for planned costs compare against actual costs, specify the standard price.

  8. To regulate pricing of service agreements, fill in field Only agreement type or No agreement type. For more information, see Pricing Service Agreements. To connect several contract items to an item, field Only agreement type is particularly useful.

  9. Classify the contract item as a service and/or rental agreement. This classification is significant for pricing agreements.

  10. When entry is completed, the opening panel is displayed. Return to menu if you have finished entering the contract items.

Description

Assume a service company has four agreement types which are included in an agreement for item A. These types are:

FS Full service
MS Reserve parts included in the agreement
RE Rental without service
RF Rental with full service

For the different agreement types (depending on what is agreed to) different agreement prices and names are desired for agreement invoicing the item covering the included individual items.

In this example four contract items are entered:

Contract item Item name Price Only agreement type Service Rental
A-FS Full service 1,500 FS 1 0
A-MS Reserve parts 1,000 MS 1 0
A-RE Rental without service 2,500 RE 0 1
A-RF Rental with full service 3,500 RF 1 1

Using option 11 = Contract items in program 'Item. Open Service Supplement' (SOS001), these four contract items can be connected to item A.

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