Contract Labor Terms (tsctm1132m300)

Use this session to maintain the selected labor cost term that is associated with the coverage term that is selected from the service contract.

Note

If you must change the terms, for example, after a certain amount of material has been used, a new coverage term must be created.

Note
  • If the Fixed Price check box is selected and the Coverage check box is not selected, contract prices are considered and not the amount. The Coverage related fields are not applicable.
  • If the Fixed Price check box is not selected and Coverage check box is selected, contract prices are considered to determine the amount. The Coverage dependent fields are applicable.
  • If both Fixed Price and the Coverage check boxes are selected, both contract prices and amount are considered. The contract price term is set to fixed repairs. The coverage dependent fields are applicable.

 

Service Contract

A sales agreement between a service organization and a customer for a specific period, that states the configurations (installation groups or serialized items) to be maintained, the coverage terms, and the agreed price.

Contract Change

Following are the types of contract changes:

  • Renewal: The option allows you to extend the contract period beyond its current validity duration.
  • Incidental Changes: The option allows you to implement changes to an existing contract. Changes such as addition/deletion of one or more configuration lines, changes to price and discounts, and so on are categorized as incidental changes.
  • Indexation: The option allows you to change the contract price based on the changes in the value of consumer price index.
  • Renewal with Indexation: The option allows you to perform indexation and renewal at the same time.
Contract Change

The description of the contract change.

Configuration Line

The line number identifying the configuration for which the total amounts apply.

Type of Configuration Line

The classification of the line. The line type can either be Normal, Total or Calculation. A total line is a sum total of calculation lines. A Calculation line is a partial configuration and contributes to the overall configuration of the type Total line.

Coverage Type

A financial classification that indicates to what extent work is covered under warranty or contract, and what part of the activities can be charged.

Coverage Line

For a service type / term type combination, this is a unique sequence number.

Default value of step size: 10

Note

The default value can be changed if required.

Fixed Price

If this check box is selected, the sales prices are setup in the service contract for the configuration line.

Note
  • This field is not applicable if configuration lines is not service contract or contract quotation.
  • This field is visible only if the Use Prices in Service Contracts parameter is set to 'Yes' in Contract Management Parameters (tsctm0100m000) session.
Coverage

If this check box is selected, the Coverage and Cost Terms can be defined for the configuration line.

Note
  • This field is not applicable if configuration lines is not contact or quotation.
  • This field is visible only if the Use Prices in Service Contracts parameter is set to 'Yes' in Contract Management Parameters (tsctm0100m000) session.
Installation Group

A set of serialized items that have the same location and are owned by the same business partner. Grouping serialized items into an installation group enables you to maintain them collectively.

Description

The description of the Installation group.

Item

A standard maintenance item.

Serial Number

A number that, together with the item code or manufacturer part number, uniquely identifies a component, an item, a machine, or an installation.

This serial number is usually shown together with the manufacturer part number and other identification data on an identification plate that is attached to the item.

Item Description

The description of the item.

Labor Line

The number used to identify the cost term of the coverage term. The default step size is 10.

Task

A specification of the type of work that is carried out by a service employee. You can use tasks to specify the labor required to carry out an activity. A specific labor rate can be linked to a task.

Cost Component

A cost component is a user-defined category for the classification of costs.

Cost components have the following functions:

  • To break down an item's standard cost, sales price, or valuation price.
  • To create a comparison between the estimated production order costs and the actual production order costs.
  • To calculate production variances.
  • To view the distribution of your costs over the various cost components in the Cost Accounting module.

Cost components can be of the following cost types:

  • Material Costs
  • Operation Costs
  • Surcharge on Material Costs
  • Surcharge on Operation Costs
  • WIP Transfer Costs
  • General Costs
Note

If you use Assembly Control (ASC), you cannot use cost components of the General Costs type.

Labor Type

The classification of work performed, and the time of day at which the work is performed (either normal working hours or overtime). Based on the kind of work and the hour type, you can use labor types to specify surcharges so that LN can calculate the actual labor costs in People.

Covered Time

The time that the contract covers.

Labor Rate Code

The labor rate code, defined in the Labor Rate Codes (tcppl0190m000) session in People. A sales rate and cost rate can be specified in this labor rate code.

You can assign labor rates on a wider scale to, for example,

  • A service department, for all work done by the service department.
  • An installation group, for all work carried out on the installation group.

In the Service Order Parameters (tssoc0100m000) session, default labor rate search paths can be set for the following:

  • Estimated sales rate
  • Estimated cost rate
  • Actual sales rate
  • Actual cost rate
Cost Rate

Your company's reference currency, which is defined in the Companies (tcemm1170m000) session.

Related topics

Cost Rate

The price, budgeted or actual, per reference unit. For example, the price of a machine per hour.

Cost Amount

The sum of the cost amounts of all coverage terms that are associated with the indicated service type or term type.

Note

The amount is expressed in the home currency.

Sales Rate

The price or rate of cost objects, elements or activities, at which you sell, that are used for your project.

Sales Amount

The sum of the sales amounts of all coverage terms that are associated with the indicated service type or term type.

Estimated Allocated Costs

The allocated costs amount based on the estimated service order cost lines and the estimated maintenance sales coverage lines.

Note
  • The amount is expressed in the home currency.
  • This field is displayed only if the Use Coverage Calculation for Estimates check box is selected in:
    • The Service Order Parameters (tssoc0100m000) session.
    • The Maintenance Sales Control Parameters (tsmsc0100m000) session.
Estimated Allocated Sales

The allocated sales amount based on the estimated service order cost lines and the estimated maintenance sales coverage lines.

Note
  • The amount is expressed in the home currency.
  • This field is displayed only if the Use Coverage Calculation for Estimates check box is selected in:
    • The Service Order Parameters (tssoc0100m000) session.
    • The Maintenance Sales Control Parameters (tsmsc0100m000) session.
Estimated Allocated

The allocated hours based on the estimated service order cost lines and the estimated maintenance sales coverage lines.

Note

This field is displayed only if the Use Coverage Calculation for Estimates check box is selected in:

  • The Service Order Parameters (tssoc0100m000) session.
  • The Maintenance Sales Control Parameters (tsmsc0100m000) session.
Allocated

The number of hours that were spent on service activities but that have not been financially approved in Service Order Control.

Spent Costs

The sum of costs due to service activities that have been financially approved in Service Order Control, expressed in the home currency.

Example
  • Service orders
  • Traveling costs
Allocated Costs

The sum of costs due to service activities that have not been financially approved in Service Order Control, expressed in the home currency.

Example
  • Service orders
  • Traveling costs
Spent Sales

The sum of sales amounts due to service activities that have been financially approved in Service Order Control, expressed in the currency chosen in the contract header.

Example
  • Service orders
  • Helpdesk calls
Allocated Sales

The sum of the sales amounts due to service activities that have not been financially approved in Service Order Control, expressed in the home currency.

Example
  • Service orders
  • Traveling costs