Contract Quotations (tsctm2100m000)

Use this session to maintain service-contract quotations.

 

Contract Quotation
Search Argument

An alternative form of a description used for convenience during searching. A search key is usually an abbreviation, an acronym, or a mnemonic alternative to a full description.

Contract Type

A way of categorizing contracts based on similarities and shared characteristics.

Each contract type is identified by an alphanumeric code of up to three characters.

Quotation Date

The date on which the quotation was created.

Expiry Date

The date on which the contract quotation expires.

Quotation Status
Sold-to Business Partner

Usually a customer's purchase department, the business partner who orders goods or services from your organization, that owns the configurations you maintain, or for whom you perform a project.

The agreement with the sold-to business partner can include the following:

  • Default price and discount agreements
  • Sales order defaults
  • Delivery terms
  • The related ship-to and invoice-to business partner
Sold-to Business Partner

The business partner's name.

Address

The address code.

Contact

The contact person who deals with the quotation in the business partner's organization.

First Invoice Reference

The reference by which the sold-to business partner identifies the purchase order. This reference is printed on the service contract or quotation.

Second Invoice Reference

A user-definable reference to be printed on the quotation.

Quotation Text

If this check box is selected, the quotation has an associated text that you can view by clicking the Text button.

Contract Quotation
Service Office

The service department or sales office responsible for the service contract or service-contract quotation.

Note

The service office determines the home currency and the financial company.

Sales Representative

The sales representative responsible for this contract quotation.

Line of Business

A group of customers, suppliers, or employees that work in the same business sector.

Lines of business can be used as selection criteria when generating reports or inquiries of statistical and historical data.

Sales Price List

The highest level used to record prices and discounts for a group of customers and/or suppliers. The price and discount can be determined by linking a price list code to a sales order.

Probability Percentage

A percentage indicating the probability the quotation will be accepted by the business partner.

Success/ Failure

Indicates the reason for the business partner's acceptance or rejection of the quotation.

Header Text

If this check box is selected, the quotation has an associated header text that appears on the top of each page.

Tax Classification

An attribute of order header and order lines that you can use to define tax exceptions for the transactions. LN retrieves the default tax classification from the invoice-from and invoice-to business partners.

Important!

For example, you can use the tax classification to indicate the following:

  • Payment to an invoice-to business partner is subject to withholding tax and social contributions.
  • Business partners that have the same tax aspects for your company must be grouped, for example, by subcontractors or agents.
  • Tax must be paid in a country other than the sales office or service office’s home country.
Tax Classification

The description or name of the code.

Tax Classification

The description or name of the code.

Footer Text

If this check box is selected, the quotation has an associated footer text that appears on the bottom of each page.

Calculated

The sales amount of the contract quotation calculated based on the related coverage terms, cost terms, and configuration lines.

Sales Amount

The calculated sales amount can be altered resulting in the total sales amount of the contract quotation.

Cost Amount

The cost amount of the contract quotation calculated based on the related coverage terms, cost terms, and configuration lines.

Cost Amount

A generally accepted medium of exchange such as coins, treasury notes, and banknotes.

The following currency types are available in LN:

  • Home currency, which is used internally by companies to calculate costs, record budgets, and register tax amounts
  • Transaction currency, which is used in transactions with business partners, such as orders and invoices
Gross Margin

The gross margin (GM) expressed as a percentage.

Contract Quotation
Business Partner

The business partner to which you send invoices. This usually represents a customer's accounts payable department. The definition includes the default currency and exchange rate, invoicing method and frequency, information about the customer's credit limit, the terms and method of payment, and the related pay-by business partner.

Address

The invoice-to address code.

Contact

The contact person in the business partner's organization, who deals with invoices related to the quotation.

Installment Template

A template specifying an invoice method, the interval between two installments, the installment variant and the method in which the number of financial periods of an installment should be specified. The template can be used in contract quotations and service contracts.

Payment Terms

Agreements about the way in which invoices are paid.

The payment terms include:

  • The period within which invoices must be paid.
  • The discount granted if an invoice is paid within a given period

The payment terms allow you to calculate:

  • The date on which the payment is due
  • The date on which the discount periods expire
  • The discount amount
Late Payment Surcharge

The percentage that is charged over the goods amount or over rendered services that the recipient of the invoice must pay if the invoice is not paid within a specified period.

Installment Text

If this check box is selected, the contract quotation has an associated installment text. This text is printed on all installments of the derived service contract.

Contract Quotation
Currency

The currency, which is specified in the service-contract quotation.

Exchange Rate Type

A way to group currency exchange rates. You can assign different currency exchange rates to different invoice-to business partners and/or to different types of transactions (purchase, sales, and so on).

Rate Determiner

The method to decide which date is used to determine the exchange rates.

During the composing process, all amounts in foreign currencies are converted to the home currency, based on the determined exchange rate.

Rate/Rate Factor

The factor by which an amount in a different currency is multiplied to calculate the amount in the currency base.

Rate/Rate Factor

The rate for one currency base-unit.

Tax Country

The country in which you must pay/report the value-added tax (VAT). The tax country can be different from the country where services or goods are delivered.

Default value

If the tax code is taken from the location address, the country of the location address. Otherwise, the country of the sold-to BP address.

Tax Code

The tax code for the tax country.

LN determines the default tax code as follows:

If destination sales tax is applicable, the tax rules will be consulted based on:

  • Sold-to business partner.
  • Location address.

If no tax code is found, the tax rules will be consulted again based on:

  • Sold-to business partner.
  • Sold-to-address.

If no tax code is found, or if the destination sales tax is not applicable, the tax code as specified for the related service department will be used.

Note
  • Only tax codes listed in the Tax Codes by Country (tcmcs0536m000) session for the country you selected in the Tax Country field are permitted.
Business Partner

The business partner from which you receive payments. This usually represents a customer's accounts payable department. The definition includes the default currency and exchange rate, the customer's bank relation, the type of reminders you send to the business partner, and the frequency of sending reminders.

Address

The business partner's address code.

Contact

The contact person in the pay-by business partner's organization.

Contract Quotation
Duration

The duration of the service-contract quotation.

Note

If terms are linked to the service-contract quotation, you can no longer change this field.

Duration

The time units in which the duration is measured.

Note

If terms are linked to the service-contract quotation, you cannot change this field.

Effective Date of Current Contract

The effective date of the derived service contract.

Expiry Date

The expiry date of the derived service contract.

Pricing Method

The method indicating how the contract price is determined.

The following pricing methods are available:

  • Sales Value of Configuration
  • Budgeted Service Costs
  • Installation Group/Item Pricing
Percentage of Sales Value

If the pricing method used is Sales Value of Configuration, a percentage value is required.

Note

This percentage value must be greater than zero.

Overtime

If this check box is selected, you can use overtime in the service contract's implementation.

Service Contract

The number of the contract derived from this quotation.

Contract Quotation
Contract Renewal

If this check box is selected, you can renew an active or an expired contract. Contract renewal enables you to update the expiry date of a service contract by a particular period of time. The contract coverage terms remain intact.

Note

You can only use contract renewal if you select this check box when you create the first contract (after the contract quotation is processed to a service contract).

Renewal Period

The period unit of the renewal period.

Note

The renewal period is applicable and mandatory only if the Contract Renewal check box is selected.

Price Indexation

If this check box is selected, indexation applies to the service contract.

Indexation Start Date

The effective date for the indexation.

Indexation Interval

The period after which indexation is carried out.

Example

If the service-contract duration is two years and the indexation period is six months, indexation is carried out four times.

Indexation Interval

The period unit of the indexation period.

Incidental changes

If this check box is selected, incidental changes apply to the service contract.

Calculated

The currency, which is specified in the service-contract quotation.

Penalty

If incidental changes are applied to an active service contract, you can enter here a penalty amount that the sold-to business partner must pay.

Recognize Revenue per Configuration

If this check box is selected, revenue cognition is done per configuration of the contract. This will give additional information as to how much each of the configurations under the contract is contributing to the total revenue.

If this check box is cleared, revenue recognition is carried out for the contract.

Revenue Recognition Based on
Provision

This is a percentage value by which a portion of the total contract amount can be kept without recognizing till the end of the period. When the contract period is over, the provision amount can be recognized. This provision will enable to take care of any contingences like cancellations, closure or changes to contract that can affect the revenue to be recognized. In order to prevent over-recognition of the amount, usually a certain provision is given. Based on the buffer that the company deems to be necessary, provision percentage is given.

 

Configurations

Starts the Contract Quotation Configuration Lines (tsctm1110m200) session.

Contract Terms

Starts the Contract Quotation Coverage Terms (tsctm1120m200) session.

Accept Quotation

Use this command to change the status of the service contract quotation to Free, Accepted (for Contract), or Canceled.

Note

This command is enabled when the status of the service contract quotation is Printed.

Make Correction

Use this command to set the status of the service contract quotation to Free, Accepted (for Contract), or Canceled.

Note

This command is enabled when the status of the service contract quotation is Accepted (for Contract), or Canceled.

Process Quotation to Contract...

Starts the Process Quotation to Contract (tsctm2200m000) session.

Move Service Contract Quotations to History

Starts the Move Service Contract Quotations to History (tsctm2280m000) session.