<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/ts/onlinemanual/000041" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Cost covering method</Title>
		<Keyword><Level1>Cost covering method</Level1>
			<Level2>contract management</Level2>
		</Keyword>
		<Keyword><Level1>Covering method</Level1>
			<Level2>costs</Level2>
		</Keyword>
		<Keyword><Level1>Contract management</Level1>
			<Level2>cost covering method</Level2>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>The cost covering method is used to provide a flexible way to recover service costs from the <Link href="/baanerp/tc/glossary/glossary#BusinePartne.tc" role="glossary">business partner</Link>.</Paragraph>
		<Paragraph>This parameter is specified in the <Link href="/baanerp/ts/glossary/glossary#CoveraTerms.ts" role="glossary">coverage terms</Link>.</Paragraph>
		<Paragraph>If a coverage term is varied over time (phasing) or to some counter value, it will be the phase term (or terms) that contain the specified method.</Paragraph>
		<List><ListIntro>The available methods are:</ListIntro>
			<ListItemHead><GUIRef href="/baanerp/ts/domains/ctm.ccov#fixed" role="enum">Fixed Price</GUIRef>
			</ListItemHead>
			<ListItem>Service costs are covered by a 100% discount.</ListItem>
			<ListItemHead><GUIRef href="/baanerp/ts/domains/ctm.ccov#ceilpric" role="enum">Ceiling</GUIRef>
			</ListItemHead>
			<ListItem>The maximum cost amount that is agreed with the business partner. Any costs that are higher than this value are charged for.</ListItem>
			<ListItemHead><GUIRef href="/baanerp/ts/domains/ctm.ccov#disc" role="enum">Coverage Percentage</GUIRef>
			</ListItemHead>
			<ListItem>All service costs will be charged for at a discounted rate.</ListItem>
			<ListItemHead><GUIRef href="/baanerp/ts/domains/ctm.ccov#ceildisc" role="enum">Ceiling on Coverage Percentage</GUIRef>
			</ListItemHead>
			<ListItem>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 this value are charged for at the standard rate.</ListItem>
			<ListItemHead><GUIRef href="/baanerp/ts/domains/ctm.ccov#exclusion" role="enum">Exclusion</GUIRef>
			</ListItemHead>
			<ListItem>Terms are excluded from contract coverage.</ListItem>
			<ListItemHead><GUIRef href="/baanerp/ts/domains/ctm.ccov#own.risk" role="enum">Own Risk</GUIRef>
			</ListItemHead>
			<ListItem>Terms are excluded from contract coverage until a set ceiling amount or coverage percentage is reached. If the ceiling amount is reached or the end date of the coverage term is reached, coverage will be offered on any other coverage term. Note that this covering method is not applicable to warranty coverage terms.</ListItem>
		</List>
	</GeneralSection>
	<Note><SectionTitle>Note</SectionTitle>
		<List><ListItem>If the coverage term has more than one phase, each phase can use a different cost-covering method.</ListItem>
			<ListItem>If different cost-covering methods for each phase are required, they are placed in the associated phase term.</ListItem>
		</List>
	</Note>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/ts/onlinemanual/000099" role="manual">Cost covering method - examples</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/ts/onlinemanual/000129" role="manual">Coverage terms - phased vs. non-phased</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/ts/onlinemanual/000125" role="manual">Coverage terms - phasing examples</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
