Coverage procedure

If the cost line is not financially approved, you can manually change the coverage. There is no coverage if you clear the check boxes for the coverage of service contracts, service-order quotations and warranties. These check boxes are selected by default. If you change one of these check boxes, the coverage that is stored in the sales amount fields is zero. In this case, LN transfers the sales amount to another coverage amount. You can manually change the following fields:

Until the cost line is financially approved, LN handles the coverage as allocated costs and not as actual spent costs. For this reason, you can manually change the coverage for service contracts, service-order quotations and warranties.

LN determines the cost amounts for the coverage, which the user cannot maintain. The cost amount fields are necessary because the cost amounts are posted to Financials. If you manually change the sales coverage, LN calculates the cost amounts in a similar and proportional way.

The warranty becomes active if it is related to a serialized item for which the activity must be carried out. In the Configuration Control module you can link the warranty to the serialized item. If no warranty is related to the given serialized item, LN checks if a warranty is related to a parent serialized item. If a warranty is valid for the serialized item, LN determines which part of the Total Sales Amount is covered by warranty terms. The amount covered by warranty is stored in the Warranty field. If the total sales amount is not fully covered by warranty, LN checks if service contract coverage applies.

If an active service contract is linked to the Installation group on the service-order header, LN uses data stored in the Contract Management module to determine the sales amount that is covered by the service contract. This amount is stored in the Contract field.

You can generate a service order from a service-order quotation. The service-order quotation number is stored in the service-order header. LN uses the procedure for service order invoicing to invoice the fixed amounts that are agreed for the service-order quotation. For this reason, LN creates a special activity when you generate the service order. This activity has no meaning for the normal order procedure. To exclude this activity from the order procedure, the activity status becomes Completed. The service-order quotation amounts that are agreed with the customer and that are defined by cost type, are copied to actual cost lines and stored as amounts to be invoiced (in the Invoice Sales Amount field). When you register the actual costs for the service order, LN automatically checks for each actual cost line if:

If a service order is generated from a field change order, the field change order number is stored in the service order header. The actual costs that are registered for the service order are financially covered by a special budget for field change orders. The entire actual sales amount is stored in the Sales Amount Field Change Orders field.

In the Others field you can enter a coverage amount that the customer is exempt from paying, which cannot be classed as one of the predefined coverage categories:

LN stores the sales amount that is not covered by the warranty or the service contract in the Invoice Sales Amount field, if the service procedure for the service type that is related to the service-order activity is:

For all the other service procedures, LN stores the sales amount in the Others field.