| Indexation |  |
| To accommodate fluctuations in the economy, and for the benefit of the service organization, you can revalue a service contract. Due to inflation, the costs of material, labor, tools, travel, and so on, can vary and as a result you must change the current agreements made in service contracts accordingly. You can use indexation in the Contract Management module to implement these changes automatically, if specified in the service contact. Based upon the indexation, the current contract costs and prices must be recalculated. Indexation cannot lead to a new service-contract. You must determine the following dependencies : Contract installments are regenerated based on a changed contract amount, which influences Sales Invoicing. Changes affect accounts receivable, such as additional invoices and credit notes, which influences the Accounts Receivable ledger. Changes affect forecasted revenues and costs, which influences the General Ledger accounts. If you use indexation, the cost prices and sales prices can be updated by a percentage: Service activities under contract (defined in the Service Planning & Concepts module). Term type. Note To use indexation in a service contract, before you activate a contract, you must select the Price Indexation check box for the specific contract on the Contract Changes tab in the Service Contracts (tsctm3100m000) session. To apply indexation and renew a service contract simultaneously, set the Type field in the Contract Changes (tsctm3120m000) session to Renewal with Indexation. To apply indexation to a single contract, use the Contract Changes (tsctm3120m000) session. To apply indexation to multiple contracts, use the Generate Contract Changes (tsctm3202m000) session. For more information, refer to To apply indexation to multiple contracts. Related topics To make changes to a single contract To apply indexation to multiple contracts |