Cost covering method

The cost covering method provides a flexible method to recover service costs from the business partner.

Use the Contract Quote Coverage Terms (tsctm1120m200) session to specify a value in the Coverage Terms parameter .

If a coverage term varies over time (phasing) or some counter value, the phase term (or terms) will contain the specified method.

• Ceiling

  The maximum cost amount that is agreed with the business partner. You can charge for any costs that are lower than this value charged for.

• Coverage Percentage

  All service costs are charged for at a discounted rate.

• Ceiling on Coverage Percentage

  All the aggregated service costs are charged at a discounted rate, provided that the total amount charged does not exceed the ceiling price. Any costs that are higher than the ceiling price value are charged for at the standard rate.

• Exclusion

  Terms are excluded from the contract coverage.

• Own Risk

  Terms are excluded from the contract coverage until a set ceiling amount or coverage percentage is reached. When the ceiling amount is reached, or when the end date of the coverage term is reached, the coverage is offered on the other coverage terms. Note that this covering method is not applicable to warranty coverage terms.
  Note: 

  • If the coverage term has more than one phase, each phase can use a different cost-covering method.
  • If multiple cost-covering methods are required for each phase, the methods are placed in the associated phase term.