Creating Part Service Contract--Exercises

Basic Data Setup

Person

Purpose: The purpose of this exercise is to enter a person acting as contract manager for the service contract to be established in the main exercise.

Windows:

Person

Note: If you have not yet already done so, create the following:

• Enter a person with the information given below.

General exercise for Person

Coordinator

Purpose: The purpose of this exercise is to enter a coordinator responsible for the coordination of the dispatching customer order for the return of the repair part to the customer.

Windows:

Coordinators

• Enter a coordinator with the information given below.

General exercise for Entering Coordinator

Sites per User

Purpose: The purpose of this exercise is to connect yourself as the default coordinator on your site. This is an optional step.

Windows:

Sites per User

Note: If you have not yet already done so, create the following:

• Enter yourself as the default coordinator on your site.

General exercise for Entering Site

Customer

Purpose: The purpose of this exercise is to set up the customer data for the customer to be used in main exercises below. The repair part is owned by this customer.

Windows:

Customer

• Create a Customer with the information given below, where XX is your initials.

General exercise for Customer

Inventory Part

Purpose: The purpose of this exercise is to create the part to be repaired.

Windows:

Inventory Part

Note: If you have not yet already done so, create the following:

• Create a manufactured inventory part. Replace XX with your initials.

General exercise for Manufactured Inventory Part

Main Exercise

Purpose: The purpose of this lesson is to create a customer-specific service contract for different combinations of parts and service types with different invoice types.

Windows:

Service Contract
Service Contract/Part Service
Price Change for Periodic Invoicing
Part Service Contract Cost

Establish Service Contract for Repair

1. Open the Service Contract window.
2. Create a new record and enter a contract name.
3. Use the List of Values to pick your coordinator, contract manager, and customer, as well as the currency. Make sure that you the contract is created on your own site.
4. Save your record.
5. In the Part Service tab, create a new record.
6. Enter a part service contract line description, for example Fixed Price.
7. In the Repair Part area, use the List of Values to pick your part XX-187-CS.
8. In the Execution area, use the List of Values to connect the XX-ST01 service type to the part.
9. In the Valid area, enter a date from which the service type is valid. Optionally you can enter an expiry date for the service type.
10. In the Invoicing area, select Fixed Price. The invoice type determines how the service type is invoiced after completion.
11. The price for the service type is 350. Enter the price in the Fixed Price Execution area. Optionally you can enter a discount on the fixed price.
12. Save your record.

Enter Service Contract Line for Invoicing by Resources Used

1. Open the Service Contract window.
2. Search for the contract with your customer.
3. Click the Part Service tab and search for the record for your part XX-187-CS.
4. Duplicate this record.
5. Enter a part service contract line description, for example Resources Used.
6. In the Execution area, use the List of Values to change to the XX-ST02 service type.
7. Optionally you can change the date from which the service line is valid, as well as the end date, in the Valid area.
8. In the Invoicing area, select Resources Used.
9. Save your record.

Note: When using the invoicing type Resources Used the price for the service type is based on the transactions that appear when performing the work scope associated with the service type.

There are seven system-defined cost categories: Material, Labor, Machine, Overhead, Purchase, Tools and Facilities, and Other. All transactions are identified as any of these cost categories, and the costs are grouped according to the cost categories.

In the Part Service Contract Cost tab, it is possible to define a sales value for each cost category. The sales value could either be set to Cost or Zero. When using Cost a percent and/or amount offset can be defined for each cost category. These offsets are then used when creating sales lines for the service type.

Enter Service Contract Line for Invoicing by Invoice Plan

1. Open the Service Contract window.
2. Search for the contract with your customer.
3. Click the Part Service tab and search for the records created for your part XX-187-CS.
4. Duplicate one of the records.'
5. Enter a part service contract line description, for example Invoice Plan.
6. In the Execution area, use the List of Values to change to the XX- ST03 service type.
7. Optionally you can change the date from which the service line is valid, as well as the end date, in the Valid area.
8. In the Invoicing area, select Invoice Plan.
9. In the Periodic Invoicing area, enter a non-inventory sales part number. This sales part will then on a regular basis invoice the customer for the service. It is also possible to define an alternative customer to send the invoice to instead of the customer for which the contract line is created.
10. Save your record.
11. In the Periodic Prices area (the table in the lower part of the form) a line is created with the same date(s) as specified in the Valid area. By default the period interval is 1 and the price is fetched from the sales part defined in the Periodic Invoicing area. The status is set to Accepted, and if a revaluation date is defined in the Invoice Parameter tab, then the revaluation date is automatically retrieved.

Change Periodic Prices

1. In order to update the record in the Periodic Prices area, right-click and then click Price Change for Periodic Prices, and the Price Change for Periodic Invoicing dialog box opens.
2. Specify a revaluation date, either by entering one or by using the calendar. (If a revaluation type is defined in the Invoice Parameter tab, then it is reflected in the Revaluation Type field and a revaluation date is displayed.)
3. Add another 10 percent to the existing value. (If a revaluation type is declared for the contract, a percentage is predefined but could be manually changed.) The amount is updated according to the changes of the percentage, in this case the amount increased with 10 percent. As an alternative you can directly update the amount in the New Amount field.
4. Enter your signature in the Revaluation Text field. (If a revaluation type is declared for the contract, the revaluation description is predefined but could be manually changed.)
5. Click OK.
6. A new line is created in the Periodic Prices area. The line status is Revaluating.
7. Now update the price directly on the line by adding another 100 to the existing amount and define a periodic discount of 5 percent.
8. Save your record.
9. Right-click the new line in the Periodic Prices area, then click Accept Price Changes.
10. A message appears, asking if you want to accept the price change. Click Yes and the line status changes from Revaluating to Accepted.

Your service types should after completion of these exercises be defined with the following invoice types:

Define Prices for Component Repair Order Cost Categories

1. Open the Service Contract window.
2. Search for the contract with your customer.
3. Click the Part Service Contract Cost tab.
4. Create a new record.
5. Use Material as the cost category and select Cost as the sales value.
6. In the Sales Part No field, use the List of Values to select a sales part for the cost category.

Note: For sales lines, with a service type that uses Resources Used as the invoice type, the sales part connected to the cost category is used as the invoicing object when the sales lines are transferred to a customer order. In other words, a customer order line with this sales part is created. The price is the calculated price for the service type, which is based on the transaction cost and any cost category offset in the Part Service Contract Cost tab.

7. In the Percentage Offset field, enter an offset of 10 percent.
8. Save your record.
9. Repeat step 4-8 to create records for the remaining cost categories according to the table below.

Note: If no record exists for a cost category, and transactions have occurred related to that cost category when performing work for a service type with the invoice type Resources Used, then no sales lines are created for those transactions.