Coverage terms - phased vs. non-phased

A coverage term stores agreements about the duration, the cost covering method, and the costs of the contract agreements. You can link the coverage term to one of the following types of terms, such as:

  • Material
  • Labor
  • Tooling
  • Subcontracting
  • Helpdesk
  • Freight
  • Uptime
  • Traveling
  • Other
  • All
Phased and non-phased coverage terms
  • Template coverage terms are phased when you fill in the number of periods and the period unit. Otherwise, the terms are considered non-phased.
  • Contract/warranty coverage terms are phased when you define the start date and the end date. Otherwise, the terms are considered non-phased.
Use phased terms and non-phased terms

Use phased coverage terms to define periodical ceilings, for example:

  • Ceilings on consumables (only n toners per quarter for a copier)
  • Ceilings on number of calls (only n calls per quarter)

Use non-phased coverage terms to consider the coverage of a term for the entire period for which the configuration line is valid.

Copy a template to a contract

If you copy a template to a contract and the template header duration is less than the contract renewal duration, the template coverage terms is made proportional to the contract duration for non-phased coverage terms.

Example:

  • Template header duration: One year
  • Contract renewal duration: Two years
  • Non-phased template coverage term ceiling: EUR 1,000
  • Resulting coverage term ceiling on contract: EUR 2,000

When you copy a template that contains a phased coverage term, the coverage term on the contract is also phased .

Example:

  • Template header duration: One year
  • Contract renewal duration: One year
  • Template coverage term: One month
  • Resulting number of coverage terms on contract: 12

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