The code of the service contract.
Service Contracts (tsctm3100m000)Use this session to maintain the service contracts. You can define a service contract by copying another service contract into it. If you do so, the related terms are not copied. If you use service-contract templates, you can speed up the creation process of service contracts. On the Change Conditions tab, specify which of the three types of changes ( contract renewal, indexation, incidental changes are permitted for a contract. This will enable you to make changes to an active contract later on. Important! When you save the contract, the renewal duration determines the scenario based on which the coverage and cost terms are copied. Following are the two possible scenarios relevant to renewal duration:
Service Contract The code of the service contract. 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. Effective Date The start date of the contract. Expiry Date The date the contract ends. Note Service contract expiry date must be after the service contract effective date. Status Sold-to Business Partner The business partner who orders goods or services from your
organization, who owns the configurations you maintain, or for whom you perform
a project. Usually a customer's purchase department. The agreement with the sold-to business partner can include:
Address Code The address code. Contact The person with whom you discuss business transactions. For
example, you address questions, quotations, and follow-up calls, direct mail,
and promotional gifts to the contact. The contact's data include the name,
telephone number, e-mail address, and other details. First Invoice Reference A reference field for extra information to be printed on
various service-contract documents and lists. Second Invoice Reference This is a reference field for extra information to be printed
on various service-contract documents and lists. Service Contract Text If this check box is selected, a contract text is
printed on the service-contract document. 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. Internal Sales Representative An employee of your company who maintains contact with the
sold-to business partner. The employee number of the sales representative is
also used as a sorting criterion in the sales statistics. 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. Project Pegging Project The project to which the cost is pegged. Note The Project Cost Account to which cost is pegged is a combination of Project, Element and Activity. Description The description or name of the code. Element The element that is linked to the project. Note The Project Cost Account to which cost is pegged is a combination of Project, Element and Activity. Description The description or name of the code. Activity The activity that is linked to the project. Note The Project Cost Account to which cost is pegged is a combination of Project, Element and Activity. Description The description or name of the code. Header Text If this check box is selected, a header text is printed
on the service-contract document. Note You can only add the header text if the service-contract status is Free. Footer Text If this check box is selected, a footer text is printed
on the service-contract document. Note You can only add the footer text if the service-contract status is Free. 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 A full set of address-related details, which include the postal
address, access to telephone, fax, telex numbers, and email, Internet address,
identification for taxation purposes, and routing information. Contact The person with whom you discuss business transactions. For
example, you address questions, quotations, and follow-up calls, direct mail,
and promotional gifts to the contact. The contact's data include the name,
telephone number, e-mail address, and other details. Sales Type The sales type applicable to the invoice-to business
partner. 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:
Description The description or name of the code. Exempt If this check box is selected, the service contract is exempted from tax
classification. Installment Template The code that identifies the installment template. Note
Define Installment Template per Configuration If this check box is selected, the installment template is specified for
every configuration line that has coverage terms linked. Note When you create the service contract, the value in this field is defaulted from the Contract Management Parameters (tsctm0100m000) session. Indexation Template The template used to define the percentage by which the
contract amount must be indexed. Payment Terms Agreements about the way in which invoices are paid. The payment terms include:
The payment terms allow you to calculate:
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, a text is printed on
installment invoices. Currency The currency, which is specified
in the service contract. 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 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. Own Tax Number The tax number of the service provider. Tax Code The tax code for the tax country. LN determines the default tax code as follows: If the destination sales tax is applicable, the tax rules will be consulted based on:
If no tax code is found, the tax rules will be consulted again based on:
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
Business Partner Tax Country The tax country of the business partner. Description The description of the business partner's tax
country BP Tax Number The tax number of the business partner. Business Partner The business partner from whom 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 address code. Contact The person with whom you discuss business transactions. For
example, you address questions, quotations, and follow-up calls, direct mail,
and promotional gifts to the contact. The contact's data include the name,
telephone number, e-mail address, and other details. Duration The time period for which the contract is active. Enter a
numeric value and select a unit of time to define the contract duration.
Following are the available units of time:
Example: A contract can be active for 1 year, 1 quarter and so on. Numeric Value: 1 Time Unit: Day, Week and so on. Duration The unit of time that defines the duration for which the
contract is active . Following are the available units of time:
Example: A contract can be active for 1 year, 1 quarter and so on. Numeric Value: 1 Time Unit: Day, Week and so on. Pricing Method The method indicating how the contract price is
determined. The following pricing methods are available:
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. Contract Quotation A quotation to a business partner for the provision of a
service contract. Overtime If this check box is selected, you can use overtime in
the service contract's implementation. Contract Renewal If this checkbox is selected, you can renew a service contract
with Active or an Expired status. If you clear this checkbox the Renewal Period field is disabled. Note To perform indexation and renewal simultaneously, select both the Price Indexation and Contract Renewal check box. Renewal Period The time period for which the contract is active. Enter a
numeric value and select a unit of time to define the time period. Following
are the available units of time:
Example: A contract can be active for 1 year, 1 quarter and so on. Numeric Value: 1 Time Unit: Day, Week and so on. Note The field is disabled in case the Contract Renewal checkbox is cleared. Renewal Period The unit of time that defines the duration for which the
contract is active . Following are the available units of time:
Example: A contract can be active for 1 year, 1 quarter and so on. Numeric Value: 1 Time Unit: Day, Week and so on. Marked for Expiry If this check box is selected, this contract will be
ignored during a global renewal process. Price Indexation If this check box is selected, you can apply indexation to the service
contract price. Indexation enables you to lower or raise the price of the
service contract at given intervals. Note To perform indexation and renewal simultaneously, select both the Price Indexation and Contract Renewal check box. 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 (2) years and the indexation period is six months, indexation is carried out four times. Indexation Interval Period Unit The period unit of the indexation period. Incidental Changes If this check box is selected, you can make incidental changes to this
service contract. Penalty If incidental changes are carried out on an active service
contract, you can enter here a penalty amount that the sold-to business partner
must pay. 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. Recognize Revenue per Configuration If this check box is selected, revenue cognition is
carried out for each 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 performed for the contract.
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