Setting Up Contract Service Types

Open the Contract Service Types form.

Specify this information on the form:

Service Type

Specify an alphanumeric code to represent the type of contract.

Description

Specify a brief description of the service type code.

Product Code

Select the default value to use for new contracts. The contract product code contains all of the general ledger accounts that are used to post the cost of goods sold and revenue amounts during the Contract Invoicing activity.

Terms

Optionally, select a terms code to use when the terms code of the customer is blank. When the customer's terms code is defined, it will be used on the contract.

The terms code is used when determining the due date and discount information when invoices are generated.

Default Item

Select an item to use as the default with the service type.

Default Sales Item

Select an item to use as the default with the service type. This item is used during the New Contract process when there is an initial bill amount to be added to the Sales Order.

Waiver Charge

A percentage that determines service contract waiver charges is displayed. The amount is calculated based on the total rental amount for any contract lines that have the Include Waiver Charge check box selected. Any surcharges associated with the contract line are not included in this calculation. A waiver charge is a charge that applies to an entire contract and is calculated based on a percentage of the total amount billed.

Billing Frequency

Select the default value to use on new contracts or contract lines for the time period between billing cycles. See Contract Billing Frequency for more information.

Bill In Arrears

Select this check box if you want to bill at the end of a billing period by default for this service type.

Note: If Bill In Arrears is selected on the Contract Parameters form, this check box is selected.

Billing Type

Select the default billing type value to use for new contracts:

Fixed: The contract price is based on the manually entered total.
Calculated: The contract price is based on the rates and time periods set up on the header and lines.

Prepayment Amount (%)

Specify a required prepayment amount for the service type.

Prorate End of Billing

This field is set by the default value on the Contract Parameters form.Contract Rates ButtonClick this button to launch the Contract Rates form.

Specify this information in the Service Level Agreement group box:

Priority Code: Select a priority code to use with the service type.
Override Business Hours: Select this check box to use a Start/End Business Hour Schedule that is different than the hours set up in the General Parameters form. Selecting this check box enables the Start/End Time fields, where you can enter the times for contracts using this type.
Start/End Time: For each day, specify the range of time during which the items/units under contract are covered.
% 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 % Of Coverage would be set to 100%. If only 10% of transaction is going to be charged, then the % Of Coverage would be set to 90%.
% 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 % Of Coverage would be set to 100%. If only 10% of transaction is going to be charged, then the % Of Coverage would be set to 90%.

Save the record.