Setting Up Contract Line Entitlements

On the Contract Lines form, you can set up entitlements for each contract line.

Entitlements

Specify the percentage amount that a customer is charged for each material or labor transaction. As service transactions are posted for the particular unit or item under contract, the system automatically calculates the price of the transaction based on the percentage not covered. For example, if labor is completely covered, then the % Of Coverage would be set to 100%. If only 10% of a transaction is going to be charged, then the % Of Coverage would be set to 90%. The system uses this formula:

List Price * (100 - Entitlement/100)

The entitlement calculation can 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 material transactions, the SRO Type and Family Code of the item determine the entitlement level.

You can create multiple labor and material coverage entries so that different work codes and family codes use a specific coverage value.