Define and Apply Price Index for a Maintenance Agreement

Maintenance Agreements may exist for several years and their prices may be subject to change during this period.

To ensure these changes in prices can be reflected in the charges invoiced to customers, a price index can be associated with a maintenance agreement and updated during the lifetime of the maintenance agreement.

This document describes:

  • The setup preconditions that must be in place before a price index can be used for a maintenance agreement.
  • The steps required to both set up and maintain the price index for a maintenance agreement.

Outcome

Base prices of an agreement are updated by the price index multiplier defined in 'Price Index. Open' (COS400) and available to the maintenance agreement invoicing process.

Before you start

When defining a maintenance agreement price index for the first time:

  1. An agreement is defined in 'Maint Agrmnt. Open' (COS410) and:

    1. Is set up for periodic invoicing. See .

    2. Has connected sites in 'Agreement Site. Open' (COS403).

    3. Is connected to a maintenance agreement in 'Maintenance Agreement Equipment. Open' (COS433).

  2. (COS433/E) has invoice range values within the 'Agreement Update by Price Index' (COS404) 'valid from' and 'to' dates.

  3. (COS433/E) prices are populated for labor, material, subcontracting, miscellaneous, line amount, and sales price.

Follow these steps

  1. Start 'Price Index. Open' (COS400).

  2. Specify index and click Create.

  3. Populate 'Index Name' and 'Number of Decimal Places' and click next.

  4. Highlight the index created and choose option 11='crt/chg value'.

  5. Populate 'valid from', 'valid to' and 'price index value' fields and click next. The index value is used as a multiplier against the base prices in (COS433) when the price index is updated on the agreement.

  6. Start 'Function. Open' (MNS110).

  7. Launch 'Agreement Update by Price Index' (COS404) and click enter against both E and F panels.

  8. Open 'Maintenance Agreement. Open' (COS410) and use option 17='Agreement Sites' to navigate to (COS403).

  9. Use option 11 from (COS403) to navigate to (COS433) and from there to (COS434).

  10. (COS434/E) base prices are updated and indexed from the price index value. A record of the old price and the new price is displayed. The new price is copied to (COS433) the next time the agreement is invoiced. The record in (COS434) is then set to status 90.

  11. The previous (COS433/E) base values are saved and updated on (COS433/F). As this is a first time index update, the prices on (COS433/F) would have been blank before the index update.

  12. 'Price index type', 'value' and 'date range' in are saved on (COS433/F).

  13. The old set of prices is displayed on (COS433/F).

A history record for the index updates is created in 'Maint Agreement Equipment Index. Open' (COS434). The record contains all historical index updates and prices.

Apply index updates to a maintenance agreement

  1. Start (COS404) and select change against the required price index .

  2. Update 'To Date', 'From Date' and 'Price Index Value'. The dates must match the dates set on the index.

  3. Populate the 'Agreement Range' and click enter.

  4. Confirm if the prices are updated as required by following steps 7-12 of Follow these steps.

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