Quote amount calculation methods
A customer who is seeking service/repair for an item, requests for a quote or a proposal from the service provider for the estimated cost of the service/repair that needs to be performed as part of preventive maintenance or breakdown repair.
To calculate the price proposal amount, LN considers these factors:
- Discounts
- Warranty
- Contract
- Repair Warranty
LN retrieves the sales price for all cost lines (a cost line is any type of cost that is incurred in maintenance/repair execution) in case the default values exist.
Proposal Methods
You can create a proposal based on these methods:
- Fixed
- For this proposal method, the quote sales amount remains fixed even after you
specify additional cost lines in maintenance sales order (MSO)/work order. These
lines are added to account for additional resource requirements, if any, when a
work order is processed. The new cost lines are not invoiced to the
customer.
LN creates a maintenance sales order (MSO) for the quote after you process the quote. LN creates a Coverage Line of type Quote Invoice with the same amount as the quote sales amount when a work order that is linked to the created MSO is closed. You can invoice only this Coverage line linked to the maintenance sales order to the customer.
If you add a new cost/coverage line to the work order/maintenance sales order after Infor LN creates the maintenance sales order, Infor LN informs you that the quote from which the MSO originated is a fixed price proposal quote. The cost line amount, which is not covered by discount, warranty, or contract is added to the quote. The net invoice amount for the cost line is zero.
- Fixed Plus
- This price proposal method is similar to the Fixed price
proposal method, except that the additional cost lines are invoiced
separately.
When you cost the maintenance sales order, you can invoice the new cost/coverage line and the quote invoice line.
Note: To change a price proposal method of a quote from Fixed to Fixed Plus:- From the appropriate menu, select in one of these sessions:
- Quotes (tsepp1100m000)
- Maintenance Sales Order - Part Lines (tsmsc1110m000)
- In the Maintenance Sales Order - Coverage Lines (tsmsc1120m000) session, clear the Quotation check box.
- From the appropriate menu, select in one of these sessions:
- Budget Indicator
- You can invoice all the coverage lines to the customer. Infor LN updates the
quote sales amount whenever a quote cost line is added, modified, or deleted. The
quote sales amount in the price proposal is an approximate amount. The actual
amount can vary.
Infor LN does not create a Quote Invoice line in the MSO for this price proposal method. All the coverage lines are independently invoiced to the customer.
Invoicing the Quote cost lines based on Proposal Method
You must specify the details of the item to be repaired in the Quote Lines (tsepp1110m000) session. For each Quote Line, you must define labor, material and other costs in the Quote Cost Lines (tsepp1120m000) session. You must send the quote to the customer for acceptance. The Proposal Method that Infor LN uses to calculate the quote sales amount is specified in the Quotes (tsepp1100m000) session and can be set to:
- Fixed: Only the cost lines linked to the quote are invoiced. The additional cost lines must not be invoiced.
- Fixed Plus: The cost lines linked to the quote and the additional cost lines are invoiced.
- Budget Indicator: Infor LN indicates that cost lines linked to the quote are estimates. All the actual cost lines must be invoiced.
If the customer accepts the proposal, a maintenance sales order is generated in the Maintenance Sales Orders (tsmsc1100m000) session. For this Maintenance Sales Order a Part Maintenance Line is created. Infor LN generates Work Order (cost lines) for each Part Maintenance Line and the service quote is linked to this Work Order (cost lines).
The Work Order must be processed for each cost line and a Maintenance Sales Order Coverage Line must be generated in the Maintenance Sales Order - Coverage Lines (tsmsc1120m000) session.
When this WO is processed, Infor LN creates a Maintenance Sales Order Coverage Line in the Maintenance Sales Order - Coverage Lines (tsmsc1120m000) session and the invoice amount is calculated based on the Proposal Method set in the Quotes (tsepp1100m000) session:
- Fixed or Fixed Plus: An additional coverage line with Cost Type field set to Quote Invoice is created in the Maintenance Sales Order - Coverage Lines (tsmsc1120m000) session. The new coverage line must be created with the invoice amount of the total cost lines on the quote. The invoice amount for all the other coverage lines must be zero.
- Budget Indicator: The invoice amount for all the coverage lines is calculated from the sales amount.