Price calculation

Price calculation is carried out for all installation group and or serialized items that are specified in the contract or contract quotation. You must determine the value of the entire Installation group, the single (not related) serialized items, as well as the service BOM items that are linked to an Installation group.

You can determine the value of the Installation group in the following ways:

Sales Value of Configuration

The value of the entire Installation group is determined by the total of the prices of all items that are part of the Installation group.

Detailed explanation of the numbers included in Figures 1 and 2

1: Determine the application

2 and 3: Determine Installation groups and serialized items for contract quotations

You can define an Installation group or an item for each record in the Service Order Quote Configuration Lines (tsctm1110m400) session. The (serialized) items that are expired are not used.

4: Determine Installation groups for contracts

The sales value or price list is determined by the Installation groups for which the service contract is defined in the Contract Configuration Lines (tsctm1110m300) session. If no Installation groups are defined for the service contract, LN does not calculate the price.

5 and 6: Read Installation group structures and physical breakdown in:

Configuration Management (CFG)
Installation group

For the Installation group defined in a service contract, service-contract quotation, or service-order quotation, and the entire serialized item structure of that Installation group, LN carries out the following checks:

If the Covered by Contract check box is not selected, the serialized item, and the item's underlying structure is skipped. LN uses the serialized item's sales price. If the serialized item price is found, LN does not check for prices in this serialized item's underlying structure.

Budgeted Service Costs

The price is the total sales amount of all defined terms and coverage terms.

Item Pricing

The contract price for the covered configuration is based on the recommended sales prices for the combination of item, contract template, and duration. These prices are maintained in the Contract Item Price Lists (tsctm0115m000) session.

Sales value of the Configuration

If you select this pricing method, LN calculates the value of the Installation groups that are defined in the service contract or the contract quotation. LN calculates these Installation group as shown in Figure 1.

Note: Click Detailed explanation of the numbers included in Figures 1 and 2.

Item Pricing

If you select this pricing method, the value of the contract or contract quotation is based on the planned or predicted activities, which are linked to the Installation groups/items. The process is shown in Figure 2.

Note: Click Detailed explanation of the numbers included in Figures 1 and 2.

Detailed explanation of the numbers mentioned in figures 1 and 2

1: Determine the application.

2 and 3: Determine Installation groups and serialized items for contract quotations.

An Installation group or an item can be defined for each record in the Service Order Quote Configuration Lines (tsctm1110m400) session. Expired items and serialized items are not used.

4: Determine Installation groups for contracts.

The Installation groups for which the service contract is defined in the Contract Configuration Lines (tsctm1110m300) session determines the sales value or price list. If no Installation group are defined for the service contract, LN will not calculate a price.

5 and 6: Read Installation group structures and physical breakdown in:

Configuration Management (CFG)

Installation Group

For the Installation group defined in a service contract, service-contract quotation, or service-order quotation, as well as for the entire serialized item structure of that Installation group, LN performs the following check:

If the Covered by Contract check box is not selected, the serialized item and its underlying structure is skipped. LN uses the serialized item's sales price. If the serialized item price is found, LN does not check for prices in this serialized item's underlying structure.

Serialized item

For each Installation group, the structure is read top-down to check the Covered by Contract check box for the serialized item. If this check box is cleared, the serialized item is skipped. This also applies to all underlying child serialized items.

Note: The Covered by Contract check box does not apply to serialized items of service-order quotations. The price of the serialized item at the highest level in the serialized item structure is used.

Item

If an item is defined as a top serialized item in the Installation group, the item breakdown that is defined for the item is read. If no item breakdown is present, LN cannot determine the price. If an item breakdown is defined, LN uses the item's service price that is defined in the Items - Service (tsmdm2100m000) session.

7 Aggregate prices

LN totals the prices of all Installation groups and serialized items and calculates the percentage.