Function: Contract entry

In this function, you can enter sales contracts that mainly relate to prices. You can also create discounts for a specified period, and special contracts, normal sales contracts, which are standard contracts that are mandatory for schedules and orders, and specific action contracts, , for example, special offers or promotional activities. You can create a schedule based on a contract.

After the sales quotation has been negotiated between the contractor and customer, the contract can be signed.

In principle, all the terms of conditions, for example, pricing, legal, ownership, and responsibility, have been specified during the negotiation phase. If the customer agrees to the proposal, all the negotiated agreements can be transferred to a contract. The content of this contract covers all the work, varying from engineering to production, and possibly service or maintenance afterwards.

Process: Enter sales contract (code: MAM05b)

The objective of this process is to enter a sales contract or a proposal for a contract. Sales orders or schedules can be derived from contracts. This process starts with contracts or contract proposals that must be entered. A contract proposal is a contract that has not yet been activated. The contract or proposal can be copied from an existing contract, or can be created. The next step is to create the contract header, after which the lines can be entered. Subsequently, the contract can be activated. In case the Sales Contract will be used as a Delivery Contract, the required Sales Schedule should be created via the Sales Contract lines after activation.

After you print the sales contract acknowledgements, the contract will be sent for acknowledgement to the customer by mail or fax. After you perform these activities, the sales contract for these typologies is entered.

Assumptions:

  • The use of contracts is optional for the typologies Standard and Predefined. However, if schedules are used, you must use a contract.

IT support:

  • LN Order Management, Sales Control
Process: Enter service contract (code: MAM05a)

In this function, contractual obligations with a customer can be recorded, with regard to scheduled and non non-scheduled service activities, as well as prices and discounts. Service contracts are time-based, not activity-based, and can include agreements on any or all of the following:

  • Scheduled maintenance.
  • Call-out and repair (nonscheduled maintenance).
  • (Remote) monitoring.
  • Helpdesk support.
  • Parts and material supply.
  • Replacement and refurbishment, and/or additional service activities (subcontracted or not).

Contract parameters can include price, response time, discounts, duration and renewal, penalties, invoicing, and service level measurement, such as, for example, Mean Time Between Failure (MTBF), Mean Time To Repair (MTTR), and Invoicing. The output is a registered contract. Invoicing proposals from an installment schedule are transferred to service invoicing for further processing.

Contract renewal is not included in this process, but will be part of the exception flow.

Assumptions:

  • No assumptions apply in this case.

IT support:

  • LN Service Contract Management