| # Service Contracts - History (tsctm8511m000) Use this session to view the history of the service contracts. Related topics To use templates in contract management To create service contracts To calculate contract prices Service contract changes Number groups in Service To use number groups and series Service tax rules, tax code, and tax country Service Contract The code of the service contract. Description The description of the service contract. Search Argument An alternative form of a description used for convenience during searching. A search key is usually an abbreviation, an acronym, or a mnemonic alternative to a full description. Contract Type A way of categorizing contracts based on similarities and shared characteristics. Each contract type is identified by an alphanumeric code of up to three characters. Effective Date The start date of the contract. Expiry Date The date the contract ends. Note Service contract expiry date must be after the service contract effective date. Status The status of the service contract. A service contract can have either of the following statuses: Free: This is the initial state. You are free to modify the service contract. Active: The service contract is frozen and changes cannot be made via the contract renewal procedure. Expired : The contracts' expiry date is dated in the past. Canceled: The service contract is canceled for the reasons mentioned in the cancel reason. Closed - The service contract is financially processed and can be moved to history. Business Partner Usually a customer's purchase department, the business partner who orders goods or services from your organization, that owns the configurations you maintain, or for whom you perform a project. The agreement with the sold-to business partner can include the following: Default price and discount agreements Sales order defaults Delivery terms The related ship-to and invoice-to business partner Business Partner The business partner's name. Address Code The address code. Address Code The street or road name in the address. Address Code The building number. Contact Person The person with whom you discuss business transactions. For example, you address questions, quotations, and follow-up calls, direct mail, and promotional gifts to the contact. The contact's data include the name, telephone number, e-mail address, and other details. Contact Name The contact's name. First Invoice Reference This is a reference field for extra information to be printed on various service-contract documents and lists. Second Invoice Reference This is a reference field for extra information to be printed on various service-contract documents and lists. Service Contract Text If this check box is selected, a contract text is printed on the service-contract document. 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. Sales Representative An employee of your company who maintains contact with the sold-to business partner. The employee number of the sales representative is also used as a sorting criterion in the sales statistics. Line of Business A group of customers, suppliers, or employees that work in the same business sector. Lines of business can be used as selection criteria when generating reports or inquiries of statistical and historical data. Sales Price List The highest level used to record prices and discounts for a group of customers and/or suppliers. The price and discount can be determined by linking a price list code to a sales order. Header Text If this check box is selected, a header text is printed on the service-contract document. Note You can only add the header text if the service-contract status is Free. Footer Text If this check box is selected, a footer text is printed on the service-contract document. Note You can only add the footer text if the service-contract status is Free. Business Partner The business partner to which you send invoices. This usually represents a customer's accounts payable department. The definition includes the default currency and exchange rate, invoicing method and frequency, information about the customer's credit limit, the terms and method of payment, and the related pay-by business partner. Business Partner The business partner's name. Address A full set of addressing details, which include the postal address, access numbers for telephone, fax, and telex, e-mail and Internet address, identification for taxation purposes, and routing information. Address The street or road name in the address. Address The building number. City The city in the address. Contact Person The person with whom you discuss business transactions. For example, you address questions, quotations, and follow-up calls, direct mail, and promotional gifts to the contact. The contact's data include the name, telephone number, e-mail address, and other details. Sales Type The sales type applicable to the invoice-to business partner. Description The description of the sales type applicable. Installment Template The code of the installment template. When an installment template is specified at header level instead of at configuration lines level, the installments will be generated per header instead of per covered configuration. When installment template is not specified, it becomes mandatory to specify the installment template for each covered configuration. Payment Terms Agreements about the way in which invoices are paid. The payment terms include: The period within which invoices must be paid. The discount granted if an invoice is paid within a given period The payment terms allow you to calculate: The date on which the payment is due The date on which the discount periods expire The discount amount Late Payment Surcharge The percentage that is charged over the goods amount or over rendered services that the recipient of the invoice must pay if the bill is not paid within a specified period. Installment Text If this check box is selected, a text is printed on installment invoices. Currency The currency, which is specified in the service contract. Currency Currency in which sales amounts are expressed in this Contract. Exchange Rate Type A way to group currency exchange rates. You can assign different currency exchange rates to different invoice-to business partners and/or to different types of transactions (purchase, sales, and so on). Rate Determiner rate determiner. The possible values can be: Fixed Local (applicable in independent MC setup) Fixed Hard (applicable in independent MC setup) Fixed Local and Hard (applicable in independent MC setup) Fixed (applicable in single and dependent MC setup) Delivery Date Document Date Expected Cash Date Manually Entered Rate/Rate Factor The factor by which an amount in a different currency is multiplied to calculate the amount in the currency base. Rate/Rate Factor The factor by which the amount in the transaction currency or the invoice currency is divided before ERP Enterprise converts it to a home currency. A rate factor is often used for currencies that have a relatively low price, for example, Korean Won. Rate/Rate Factor The rate for one (1) currency base-unit. Obsolete If this check box is selected, taxes are applicable to the contract installments. The tax country and the applicable tax code must be specified. Tax Country The country in which you must pay/report the value-added tax (VAT). The tax country can be different from the country where services or goods are delivered. 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. Related topics Service tax rules, tax code, and tax country Tax Code The tax code for the tax country. How ERP Enterprise determines the default tax code: If the 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 If the Obsolete check box is not selected, this field is cleared and inactive. Only tax codes listed in the Tax Codes by Country (tcmcs0536m000) session for the country you selected in the Tax Country field are allowed. Exempt Certificate The tax exemption certificate number. Exempt Reason The reason why the sold-to business partner or your company is exempt from sales tax. You can link a text to the reason code for a purchase tax exemption for a tax code and country combination in the Tax Exemptions for Purchasing (tsmcs1560m000) session. ERP Enterprise prints the text on orders and invoices. You can link several tax exempt reasons, each with unique texts, to a single tax code by country combination. If you use a tax provider, you must define tax exemption reasons. ERP Enterprise prints the exempt reasons on the sales invoices. Exempt Reason The description or name of the code. exempt reason. Business Partner The business partner from which you receive payments. This usually represents a customer's accounts payable department. The definition includes the default currency and exchange rate, the customer's bank relation, the type of reminders you send to the business partner, and the frequency of sending reminders. Business Partner The business partner's name. Address The address code. Address The street or road name in the address. Address The building number. City The city in the address. Contact The contact code. Service Contract This field identifies the service contract. Duration The number that is used in combination with the selected period unit to specify the duration of the service contract. The contract duration is adjusted to the right period, because the number of periods cannot be specified as a fraction ('1.5 years'). The duration is always rounded off. Note If terms are linked to the service contract, this field can no longer be changed. Duration The unit that is used to specify the duration of the service contract. The contract duration is adjusted to the right period, because the number of periods cannot be specified as a fraction ('1.5 years'). The duration is always rounded off. Note If terms are linked to the service contract, this field can no longer be changed. Effective Date Depending on its context, an effective date can be the first day on which a contract quotation is valid, the first day on which a service contract is active, or the first day on which you can use a template for quotations or contracts. The effective date often includes the effective time. Expiry Date Depending on its context, an expiry date can be: The last day on which a contract quotation is valid. The default expiry date for a quotation is the quotation date + effectivity period of quotations [days], as set in the Service Order Parameters (tssoc0100m000) session; The last day on which a service contract is active. After this date it becomes expired; The last day on which you can use a template for quotations or contracts. Note that the expiry date often includes the expiry time. Pricing Method The method indicating how the contract price is determined. The following pricing methods are available: Sales Value of Configuration Budgeted Service Costs Installation Group/Item Pricing 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. Contract Quotation A quotation to a business partner for the provision of a service contract. Overtime If this check box is selected, you can use overtime in the service contract's implementation. 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 certain period of time. Renewal Period Enter an integer. The period for which the renewed contract will be effective. The renewal period is expressed by 2 attributes: number of periods and a period unit. This is applicable and mandatory only when 'Renewal Allowed' = Yes. Renewal Period The period unit of the renewal period. Marked for Expiry If this check box is selected, this contract will be ignored during a global renewal process. Price Indexation 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 You can combine indexation and renewal by first performing contract renewal, and then applying indexation. Related topics To apply indexation to multiple contracts 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 (2) years and the indexation period is six (6) months, indexation is carried out four times. Indexation Interval The period unit of the indexation period. Incidental Changes If this check box is selected, you can make incidental changes to this service contract. Penalty 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 Determines the default for revenue recognition method to be used. This is defaulted to the Service Contract. The revenue can be recognized by either of the following methods: 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 formula for calculating the same: Net contract amount = (Total contract sales amount) * (100 – p)% Where ‘p’ is the Percentage of Provision (new field in Contract header) When ‘p’ is zero the net contract amount is the current total contract sales amount. Amount to be recognized = (Net contract amount / Total Days of contract)* Number of days Contract or configuration belong to the fiscal period. 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 formula for calculating the same: Net contract amount = (Total contract sales amount) * (100 – p)% Where ‘p’ is the Percentage of Provision (new field in Contract header) Amount to be recognized = ((Net contract amount / Total Days of contract* Cumulative number of days to date) – Cumulative recognized revenue till date) Earned Revenue Factor (Cost per Period):From the service order system/Call/MSC when the material, labor and other lines are costed then the cost incurred for the contract is transferred to the contract module and it’s stored against the fiscal period in which the costing occurred. The formula for calculating the same: 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 formula to calculate the same: ERF = Total Contract Sales Amount/ Total Estimated Costs Amount to be recognized = (lesser of A or B) – Cumulative recognized revenue till date A = (Cumulative cost incurred to date * ERF) B = Net contract amount Net contract amount = (Total contract sales amount) * (100 – p)% Or when the recognition is at the configuration level then ERF = Contract Configuration Sales Amount/ Estimated Costs for Configuration Amount to be recognized = (lesser of A or B) – Cumulative recognized revenue till date A = (cumulative cost incurred to date * ERF) B = Net Contract Configuration Amount Net Contract Configuration Amount = (Total contract Configuration sales amount) * (100 – p)% Revenue Recognition Based on his check box determines if the revenue will be calculated for the contract as a whole or per configuration in the Contract. This will be defaulted to the Service Contract. If this check box is cleared, recognition of the revenue is done for the contract as a whole. If this check box is selected, recognition of the revenue 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. Provision Provision Configuration Lines Starts the Contract Configuration Lines - History (tsctm8520m000) session. Coverage Terms Starts the Contract Quotation Coverage Terms - History (tsctm8530m000) session. Contract Installments - History Starts the Contract Installments - History (tsctm8540m000) session. Contract Changes Starts the Contract Changes - History (tsctm8512m000) session. Totals Starts the Contract Totals by Contract Change - History (tsctm8513m000) session. Delete History of Service Contracts Starts the Delete History of Service Contracts (tsctm8211m000) session. |