Service Contract (tsctm3600m000)
Use this session to maintain the service contracts. You can define a service contract by copying another service contract into it. If you do so, the related terms are not copied.
Pro Forma Invoicing
To create pro forma invoice for the service contract and the contract installments, you can use the Process Contract Installment Pro Forma Invoices option from the Action menu. The Process Contract Installment Pro Forma Invoices (tsctm4291m000) session is displayed to process the pro forma invoices for the service contract and the contract installments.
To view the Pro Forma Invoicing Workbench (cisli3640m000), you can use the Pro Forma Invoices from the Reference menu.
If you use service-contract templates, you can speed up the creation process of service contracts.
On the Change Conditions tab, specify which of the three types of changes ( contract renewal, indexation, incidental changes are permitted for a contract. This will enable you to make changes to an active contract later on.
Field Information
- Service Contract
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The code of the service contract.
- Contract Status
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The status of the service contract.
Allowed values
- Free
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This is the initial state. You are free to modify the service contract.
- Active
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The service contract is frozen and changes cannot be made via the contract renewal procedure.
- Expired
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The contract's expiry date is in the past.
- Canceled
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The service contract is canceled for the reasons mentioned in the cancel reason.
- Closed
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The service contract is financially processed and can be moved to history.
- Business Partner
- Description
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The description or name of the code.
- Contact
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The contact linked to the business partner role.
- Full Name
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The contact's first, middle, and last name.
- Duration
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The time period for which the contract is active.
- Period Unit of Contract Duration
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The unit of time that defines the duration for which the contract is active . Following are the available units of time:
Allowed values
- Week
- The duration of the usage registration is a week or a day.
- Month
- The duration of the usage registration is a month, week, or a day.
- Quarter
- Year
- The duration of the usage registration is a year, month, week, or day.
- Day
- The duration of the usage registration is at least a day.
- Effective Date
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The effective date.
- Expiry Date
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The expiry date.
- Tax Country
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The tax country of the business partner.
- Description
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The description of the business partner's tax country
- Identification Number
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The tax number of the business partner.
- Business Partner
- Address
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The address code.
- Search Argument
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The search argument.
- Contract Quote
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The contract quotation.
- Description
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The description or name of the code.
- Overtime
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If this check box is selected, you can use overtime in the service contract's implementation.
- Contract Renewal
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If this checkbox is selected, you can renew a service contract with Active or an Expired status.
If you clear this checkbox the Renewal Period field is disabled.
Note: To perform indexation and renewal simultaneously, select both the Price Indexation and Contract Renewal check box. - Contract Type
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The contract type.
- Renewal Period
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The time period for which the contract is active.
- Period Unit
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The unit of time that defines the duration for which the contract is active.
Allowed values
- Week
- The duration of the usage registration is a week or a day.
- Month
- The duration of the usage registration is a month, week, or a day.
- Quarter
- Year
- The duration of the usage registration is a year, month, week, or day.
- Day
- The duration of the usage registration is at least a day.
- Marked for Expiry
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If this check box is selected, this contract will be ignored during a global renewal process.
- Price Indexation
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If this check box is selected, you can apply indexation to the service contract price. Indexation enables you to lower or raise the price of the service contract at given intervals.
Note: To perform indexation and renewal simultaneously, select both the Price Indexation and Contract Renewal check box. - Indexation Start Date
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The effective date for the indexation.
- Indexation Interval
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The period after which indexation is carried out.
Example
If the service-contract duration is two (2) years and the indexation period is six months, indexation is carried out four times.
- Period Unit
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The period unit of the indexation period.
- Indexation Template
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The template used to define the percentage by which the contract amount must be indexed.
- Description
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The description or name of the code.
- Incidental Changes
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If this check box is selected, you can make incidental changes to this service contract.
- Description
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The description or name of the code.
- Penalty
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If incidental changes are carried out on an active service contract, you can enter here a penalty amount that the sold-to business partner must pay.
- Recognize Revenue per Configuration
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If this check box is selected, revenue cognition is carried out for each 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 performed for the contract.
- Based on
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The Revenue Recognition method.
- Provision
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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.
- Service Office
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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. - Description
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The description or name of the code.
- Internal Sales Representative
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The sales representative.
- Name
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The description or name of the code.
- Installment Template
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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
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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 service contract, the value in this field is defaulted from the Contract Management Parameters (tsctm0100m000) session. - Currency
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The currency, which is specified in the service contract.
- Description
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The description or name of the code.
- Total Sales Amount
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The total sales amount and the currency of the contract quotation.
- Pricing Method
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The pricing method indicating how the contract price is determined.
Allowed values
- Sales Value of Configuration
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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
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The price is the total sales amount of all defined terms and coverage terms.
- Installation/Item Pricing
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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
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If the pricing method used is Sales Value of Configuration, a percentage value is required.
Note: This percentage value must be greater than zero. - First Invoice Reference
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A reference field for extra information to be printed on various service-contract documents and lists.
- Second Invoice Reference
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This is a reference field for extra information to be printed on various service-contract documents and lists.
- Line of Business
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The line of business.
- Description
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The description or name of the code.
- Sales Price List
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The sales price list.
- Description
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The description or name of the code.