Contract Quotes (tsctm2100m000)

Field Information

Contract Quote

service-contract quotation.

Search Argument

search argument

Contract Type

contract type

Quote Date

The date on which the quotation was created.

Expiry Date

The date on which the contract quotation expires.

Quote Status

Free

The service-contract quotation is in the process of being developed, and can be modified as required.

Printed

The service-contract quotation has been finalized and can now be sent to the business partner. On receipt of the service-contract quotation, the business partner can accept or reject it, or request for a modification of the quotation.

Accepted (for Contract)

The service-contract quotation has been accepted by the business partner, and can now be processed into a service contract.

Processed

The service-contract quotation has been processed into a service contract, and can now be moved to history.

Canceled

The service-contract quotation has been rejected by the business partner, and can now be moved to history.

Sold-to Business Partner

sold-to business partner

Sold-to Business Partner

The business partner's name.

Address

The address code.

Contact

The contact person who deals with the quotation in the business partner's organization.

First Invoice Reference

reference A

Second Invoice Reference

A user-definable reference to be printed on the quotation.

Quote Text

If this check box is selected, the quotation has an associated text that you can view by clicking the Text button.

Service Office

The service department or sales office responsible for the service contract or service-contract quotation.

Note: The service office determines the home currency and the financial company.

Internal Sales Representative

The sales representative responsible for this contract quotation.

Line of Business

line of business

Sales Price List

sales price list

Probability Percentage

A percentage indicating the probability the quotation will be accepted by the business partner.

Success/ Failure

Indicates the reason for the business partner's acceptance or rejection of the quotation.

Header Text

If this check box is selected, the quotation has an associated header text that appears on the top of each page.

Tax Classification

An attribute of order header and order lines that you can use to define tax exceptions for the transactions. LN retrieves the default tax classification from the invoice-from and invoice-to business partners.

Note: 

For example, you can use the tax classification to indicate the following:

• Payment to an invoice-to business partner is subject to withholding tax and social contributions.
• Business partners that have the same tax aspects for your company must be grouped, for example, by subcontractors or agents.
• Tax must be paid in a country other than the sales office or service office’s home country.

Description

The description or name of the code.

Footer Text

If this check box is selected, the quotation has an associated footer text that appears on the bottom of each page.

Calculated

The sales amount of the contract quotation calculated based on the related coverage terms, cost terms, and configuration lines.

Sales Amount

The calculated sales amount can be altered resulting in the total sales amount of the contract quotation.

Cost Amount

The cost amount of the contract quotation calculated based on the related coverage terms, cost terms, and configuration lines.

Cost Amount

currency

Gross Margin

The gross margin (GM) expressed as a percentage.

Business Partner

invoice-to business partner

Address

The invoice-to address code.

Contact

The contact person in the business partner's organization, who deals with invoices related to the quotation.

Installment Template

The code that identifies the installment template.

Note: 

• This field is visible and mandatory if the Define Installment Template per Configuration check box is cleared in the Contract Management Parameters (tsctm0100m000) session.
• The value in this field is defaulted from the Contract Management Parameters (tsctm0100m000) session.

Define Installment Template per Configuration

If this check box is selected, the installment template is specified for every configuration line that has coverage terms linked.

Note: When you create the contract quotation, the value in this field is defaulted from the Contract Management Parameters (tsctm0100m000) session.

Payment Terms

payment terms

Late Payment Surcharge

late payment surcharge

Installment Text

If this check box is selected, the contract quotation has an associated installment text. This text is printed on all installments of the derived service contract.

Currency

The currency, which is specified in the service-contract quotation.

Exchange Rate Type

exchange-rate type

Rate Determiner

rate determiner

Rate/Rate Factor

currency exchange rate

Rate/Rate Factor

The rate for one currency base-unit.

Tax Country

tax country

Default value

If the tax code is taken from the location address, the country of the location address. Otherwise, the country of the sold-to BP address.

Tax Code

The tax code for the tax country.

LN determines the default tax code as follows:

If destination sales tax is applicable, the tax rules will be consulted based on:

• Sold-to business partner.
• Location address.

If no tax code is found, the tax rules will be consulted again based on:

• Sold-to business partner.
• Sold-to-address.

If no tax code is found, or if the destination sales tax is not applicable, the tax code as specified for the related service department will be used.

Note: 

• Only tax codes listed in the Tax Codes by Country (tcmcs0536m000) session for the country you selected in the Tax Country field are permitted.

Business Partner

pay-by business partner

Address

The business partner's address code.

Contact

The contact person in the pay-by business partner's organization.

Duration

The duration of the service-contract quotation.

Note: If terms are linked to the service-contract quotation, you can no longer change this field.

Period Unit of Quote Duration

The time units in which the duration is measured.

Note: If terms are linked to the service-contract quotation, you cannot change this field.

Effective Date of Current Contract

The effective date of the derived service contract.

Expiry Date

The expiry date of the derived service contract.

Pricing Method

The pricing method indicating how the contract price is determined.

Allowed values

Sales Value of Configuration

The price is calculated as a percentage of the sales prices of the valid items that are linked to the cluster. This cluster can be specified in the service contract or the contract quotation. The percentage is usually based on history, experience, market, and competitor prices.

Note: The Sales Value of Configuration option is not available for service-order quotations.

Budgeted Service Costs

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

Installation/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.

Percentage of Sales Value

If the pricing method used is Sales Value of Configuration, a percentage value is required.

Note: This percentage value must be greater than zero.

Overtime

If this check box is selected, you can use overtime in the service contract's implementation.

Service Contract

The number of the contract derived from this quotation.

Contract Renewal

If this check box is selected, you can renew an active or an expired contract. Contract renewal enables you to update the expiry date of a service contract by a particular period of time. The contract coverage terms remain intact.

Note: You can only use contract renewal if you select this check box when you create the first contract (after the contract quotation is processed to a service contract).

Period Unit

The period unit of the renewal period.

Note: The renewal period is applicable and mandatory only if the Contract Renewal check box is selected.

Price Indexation

If this check box is selected, indexation applies to the service contract.

Indexation Start Date

The effective date for the indexation.

Indexation Interval

The period after which indexation is carried out.

Example

If the service-contract duration is two years and the indexation period is six months, indexation is carried out four times.

Period Unit

The period unit of the indexation period.

Incidental Changes

If this check box is selected, incidental changes apply to the service contract.

Penalty

If incidental changes are applied to an active service contract, you can enter here a penalty amount that the sold-to business partner must pay.

Recognize Revenue per Configuration

If this check box is selected, revenue cognition is done per configuration of the contract. This will give additional information as to how much each of the configurations under the contract is contributing to the total revenue.

If this check box is cleared, revenue recognition is carried out for the contract.

Based on

Number of days per period

The basis of revenue recognition per period is by the number of days per fiscal period. The number of days the contract is live in the fiscal period determines the amount that needs to be recognized for that fiscal period. The contract duration in days, based on the start date and end date of the contract, forms the basis of the contract price per day. The following formulas are used:

amount to be recognized = (net contract amount / total days of contract) * number of days	contract or configuration belong to the fiscal	period

net contract amount = (total contract sales amount) * (100 – p)%

Where 'p' is the percentage specified in the Provision field of the contract header. If 'p' is zero, the net contract amount is the current total contract sales amount.

Cumulative days

The number of days elapsed since the last recognition for the contract forms the basis to calculate the amount to be recognized. The creation date of the contract revenue is considered and the fiscal period to which the creation date belongs will be the fiscal period in which the amount will be recognized. The following formulas are used:

amount to be recognized = ((net contract amount / total days of contract * cumulative number of days to date) – cumulative recognized revenue until date)

net contract amount = (total contract sales amount) * (100 – p)%

Where 'p' is the percentage specified in the Provision field of the contract header.

Earned Revenue Factor (Cost per Period)

When from Service Order Control , Call Management or Maintenance Sales Control , the material, labor and other lines are costed, the cost incurred for the contract is transferred to Contract Management and stored against the fiscal period in which the costing occurred. The following formulas are used:

ERF = total contract sales amount/ total estimated costs amount to be recognized = (cost incurred for the period * ERF)

net contract amount = (total contract sales amount) * (100 – p)%

net	configuration amount = (total configuration sales amount) * (100 – p)%

Earned Revenue Factor (Cumulative Cost)

The cost incurred since the last recognition for the contract forms the basis to calculate the amount to be recognized. The creation date of the contract revenue is considered, and the fiscal period to which the creation date belongs, will be the fiscal period in which the amount will be recognized. The following formulas are used:

ERF = total contract sales amount/ total estimated costs amount to be recognized = (lesser of A or B) – cumulative recognized revenue until date

A = cumulative cost incurred to date * ERF

B = net contract amount

net contract amount = (total contract sales amount) * (100 – p)%

If recognition is at the configuration level:

ERF = contract configuration	sales amount / estimated costs for configuration amount to be recognized = (lesser of A or B) – cumulative recognized revenue until date

A = cumulative cost incurred to date * ERF

B = net contract configuration amount

net contract configuration amount = (total contract configuration sales amount) * (100 – p)%

Not Applicable

Provision

This is a percentage value by which a portion of the total contract amount can be kept without recognizing till the end of the period. When the contract period is over, the provision amount can be recognized. This provision will enable to take care of any contingences like cancellations, closure or changes to contract that can affect the revenue to be recognized. In order to prevent over-recognition of the amount, usually a certain provision is given. Based on the buffer that the company deems to be necessary, provision percentage is given.