Advanced Contract Pricing
These pricing methods are supported for contracts:
- Age-Based Contract Pricing: A multiplier is used for pricing based on the number of years since the installation date of serial-tracked items.
- Customer Contract Pricing: For a specific customer and price code combination, you can assign a price for each service type and unit of rate.
- Product Code Contract Pricing: Set prices for a product code group of items for each service type and unit of rate.
- Item Contract Pricing: Set prices for individual items for each service type and unit of rate.
Process Flow
When using Age-Based Contract Pricing, you can choose which contract date to consider when calculating age on the Contract Parameters form: Date Created, Install Date, and Ship Date. After the system parameter is set, you can set up age multipliers at a generic level, or specific to a product code or item on the Contract Aging Rates form. You can set the multipliers in these ways:
- Set the multiplier less than one to encourage contract renewal on older items (price decreases over time).
- Set the multiplier greater than one to increase revenue, knowing that more issues will occur on older equipment (price increases over time).
The rate that defaults on the contract line is pulled from the Contract Rates form. The system uses the rate by matching Contract Price Code, Product Code, Item, Service Type, and Unit of Rate. It matches as many fields as possible by following this hierarchy:
| 1 | Contract Price Code, Item, Service Type, & Unit of Rate |
|---|---|
| 2 | Price Code, Item, & Unit of Rate |
| 3 | Price Code, Item, & Service Type |
| 4 | Price Code & Item |
| 5 | Price Code, Product Code, Service Type, & Unit of Rate |
| 6 | Price Code, Product Code, & Unit of Rate |
| 7 | Price Code, Product Code, & Service Type |
| 8 | Price Code & Product Code |
| 9 | Price Code, Service Type, & Unit of Rate |
| 10 | Price Code & Unit of Rate |
| 11 | Price Code & Service Type |
| 12 | Price Code |
| 13 | Item, Service Type, & Unit of Rate |
| 14 | Item & Unit of Rate |
| 15 | Item & Service Type |
| 16 | Item |
| 17 | Product Code, Service Type, & Unit of Rate |
| 18 | Product Code & Unit of Rate |
| 19 | Product Code & Service Type |
| 20 | Product Code |
| 21 | Service Type & Unit of Rate |
| 22 | Unit of Rate |
| 23 | Service Type |
| 24 | Default Rate (rate where all other fields are blank) |
After the price is obtained, if the Unit number is filled in on the contract line, then the system looks for a corresponding Age Multiplier that needs to be applied.
Additional Information
- Contract Re-pricing: On the Contracts form, use the button to recalculate the price on all of the line items based on any changes made to the Service Type of the contract or price changes made at the item, product code, or customer level.
- Contract Price Codes: To create price codes specific to the contract module select Contract on the Price Codes form.
- Unit Creation Date Tracking: You can assign the date a unit was created on the Units form. The system uses a default value upon creation of new units. You can then use this field as a basis for age-based pricing.