Service Contract Template
The service contract templates are used to accelerate the manual or automatic creation of service contracts.
The templates for the "Warranty" type contract are used as an aid to the manual entry of warranty contracts.
The templates for the "Maintenance" type contract are used as an aid for the automatic creation of maintenance contracts following the entry of orders. In fact, it is not advised to enter this type of contract manually because, in this case, they cannot be taken into account by the invoicing tools.
A service contract template contains all the contract fields that can be made the object of an automatic qualification.
A service contract template contains several functional particulars according to whether it is a warranty template, a maintenance template or a contract with points template.
Warranty template
A warranty contract is a free contract where the coverage rules are expressed via an identification of the installed base accompanied by a dimension type (skills).
Product coverage :
The product coverage function is not accessible for a warranty template. In fact, a warranty cannot be applied to all the serial numbers for a product reference. Each warranty contract concerns one or more precisely identified numbers. These serial numbers cannot be entered via a template. The relation between a serial number and its owner can only be established on delivery in the case of direct sales or on reseller notification or receipt of the warranty coupon in the case of indirect (retail) sales.
Contract :
In the majority of the cases, a warranty contract will not have available any information relative to its invoicing, its re-evaluation or its termination. The principle of a warranty is that generally is is free.
Maintenance template
A maintenance contract contains the same characteristics as a warranty contract but in addition it can be invoiced.
Product coverage :
Whilst rare, it is possible that a maintenance contract can cover all the serial numbers sharing the same product reference.
With points template
A contract with points can be both payable or free and is applied to all the installed base at the customer. The application of this coverage is limited by the consumption of the points credit.
Quality constraints :
For a contract with points alone, it is necessary to determine the quality constraints. The point debit rules management is determinant for this type of contract. It is also possible to manage a points tolerance threshold, this is used to control the consumption of the points.
Prerequisite
Refer to documentation Implementation
Screen management
The basics of a service contract template are defined over three tabs.
Header
Presentation
Code
This field is by default associated with an automatically functioning sequence number counter. Consequently, the user should not normally concern him/herself with its contents.
Currency
This field is used to define the currency to be applied to all the financial fields for the service contract template. This same currency is also used to determine the charges for services for product coverage.
Description
This field must contain a short description used to determine in a non-equivocal fashion the nature and object of the contract that will be created when using this template.
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Fields
The following fields are present on this tab :
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This field is by default associated with an automatically functioning sequence number counter. Consequently, the user should not normally concern him/herself with its contents. By default, the contract template code will be composed of a sequence number of 15 characters generated in an automatic fashion. |
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This field is used to define the currency to be applied to all the financial fields for the service contract template. This same currency is also used to determine the charges for services for product coverage. |
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This field must contain a short description used to determine in a non-equivocal fashion the nature and object of the contract that will be created when using this template. |
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Tab General
Presentation
Contract statistics groups
The statistics groups are notably used in the statistical processes or in the selection criteria in numerous objects.
Category
This field is used to declare the service contract template category type. If the template is of the Maintenance category, then the service contract created from this template will inherit the specified category. This field can take one of three values in local menu 2976 :
- Warranty
- Maintenance
- Points
All skills
This field is used to determine the access to the skills coverage management function.
If this field is ticked, the coverage management function is inaccessible because all the skills described in the application are considered in accordance with the contract. It is therefore of no use to enter them one by one.
If this field is not ticked, only the skills entered in the Skills covered menu (Menu Function - Skills covered) are covered by the contract created on the basis of this template.
NB: In this function, the level of the skills group covered is entered. This means that when a skills group is entered, all the sister groups are covered by the contract.
If this field is not ticked and no skills group is entered, the contract will be almost unusable. No customer problem will be able to be taken into account by this contract.
All products
This field is used to declare whether the contract template covers all the products at the customer. If this field is ticked, then the Priority to installed base field becomes inaccessible. If this field is ticked, the product coverage function is inaccessible. This signifies that the contract created from this template applies to all of the products ordered by the customer.
If this field is not ticked, two options are possible :
- Do not enter any product reference in the Functions – base coverage menu and wait for the creation of the contract before completing the entry of the serial numbers to be covered.
- Enter one or more product references in order to automatically cover the serial numbers for this product reference with the customer.
NB: For a service contract with points template, the three flags All skills, All products, Priority to installed base, are ticked but not accessible.
Priority to the base
This option concerns the warrantee and maintenance contracts for which the coverage is by Installed base type (and not all the installed base) has been defined.
It is used to completely automate the definition of the combined coverages (Installed base + Skill) for all the coverages of the type Installed base. This field is used to combine the financial coverage of a service contract template with the equipment base and skills coverage. Within the framework of the combined financial coverage, any modification to the coverage in one will be passed to the other.
The service contract category determines the use of three flags (All skills, All the installed base, Priority to installed base). If this field is ticked, priority is given to the customer installed base during the definition of the rules for the combined financial coverages.
Technical notes
This field is used to enter notes with a limit of 235 characters.
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Fields
The following fields are present on this tab :
Statistical groups
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The statistics groups are used in the statistical processings as well as selection criteria in many programs. |
Block number 2
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This essential field is used to determine the functional category for the service contract. This field is the support for the activation of certain functionalities such as the management of points, the re-evaluation of contracts, invoicing.... |
Coverage
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This field is used to determine the access to the skills coverage management function. If this field is ticked, the coverage management function is inaccessible because all the skills described in the application are considered in accordance with the contract. It is therefore of no use to enter them one by one. If this field is not ticked, only the skills entered in the "Skills covered" function (Menu "Function - Skills covered") are covered by the contract created on the basis of this template. Warning: In this function, the level of the skills group covered is entered. This signifies that when a skills group is entered, all the sister groups are taken into account by the contract. If this field is not ticked and no skills group is entered, the contract will be almost unusable. No customer problem will be able to be taken into account by this contract. |
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This field is used to determine the access to the product coverage management. This field can be accessed only for "Maintenance" contracts. If this field is ticked, the product coverage function is inaccessible. This signifies that the contract created from this template applies to all of the products ordered by the customer. In this way a sort of super contract is obtained. If this field is not ticked, two options are possible: 1/Do not enter any product reference in the function "Covered products" (in menu "Functions - Covered products")– and wait for the creation of the contract before completing the entry of the serial numbers to be covered. 2/ Enter one or more product references in order to automatically cover the serial numbers for this product reference with the customer. |
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This option is of use only in warranty and maintenance contracts for which a coverage type Customer base (and not the type All the base) has been defined. It is used to totally automate the definition of the cross referenced coverages (Base + Skill) on the basis of all the coverages of the type Customer Base. If this option is active, any creation, modification or deletion of a Customer base coverage is immediately copied to all the different corresponding cross-referenced coverages. |
Mnemonic notes
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This field is used to edit all the information that is used to better understand the service contract template within the framework of the after-sales strategy for the organization. |
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Tab Management elements
Presentation
Renewal
Duration
This field represents the contract duration.
For the contracts with tacit renewal, this is the frequency on which the contract will be automatically renewed.
For the contracts that have no tacit renewal agreement, it is the frequency on which the contract should be renegotiated by the two parties.
Agreed renewal
This field specifics whether the contract will be subject to an automatic renewal at the end of its term. Essentially this signifies that there will be no gap in the invoicing chain that will continue to be executed at the desired frequency.
The following three fields only concern contracts with points :
Points credit
This field is used to define a default point credit value at the level of the contract with points template.
Necessary tokens
This field is used to determine the number of tokens necessary to obtain a free contract of this type.
Points tolerance (%)
This field is used to define the threshold that is used to close or not the contract.
The following fields only concern the maintenance contracts. These fields are not available to warranty contracts or contracts with points.
Re-evaluation
Frequency of re-evaluation
This field is used to enter the frequency with which the contract must be re-evaluated.
Re-evaluation method
There are two re-evaluation methods :
- Pre-re-evaluation or Immediate re-evaluation:This method has the advantage of being more intuitive and therefore more natural. However, it is impossible to know in advance the amount of the next invoice.
- Post-re-evaluation or Differed re-evaluation: This method has the advantage of being a means of determining the amount of the next due item. On the other hand, the annual fee basis is always displaced by a period with respect to the actual value of the index.
Examples
Contract with a duration of three years, with annual invoice for the term to be paid. The contract is to be re-evaluated once a year by pre-re-evaluation :
1st March 2004 | 1st March 2005 | 1st March 2006 | 1st March 2007 |
Annual basis : 1000 | Annual basis : 1100 | Annual basis : 1200 | Annual basis : 1300 |
Next invoice amount : 1000 | Next invoice amount : ??? | Next invoice amount : ??? | Next invoice amount : ??? |
Index 1000 | Index 1100 | Index 1200 | Index 1300 |
Creation of the contract |
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Invoice amount : 1000 | Invoice amount : 1100 | Invoice amount : 1200 |
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Contract with a duration of three years, with annual invoice for the term to be paid. The contract is to be re-evaluated once a year by post-re-evaluation :
1st March 2004 | 1st March 2005 | 1st March 2006 | 1st March 2007 |
Annual basis : 1000 | Annual basis : 1000 | Annual basis : 1100 | Annual basis : 1200 |
Next invoice amount : 1000 | Next invoice amount : 1000 | Next invoice amount : 1100 | Next invoice amount : 1200 |
Index 1000 | Index 1100 | Index 1200 | Index 1300 |
Creation of the contract |
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Invoice amount : 1000 | Invoice amount : 1000 | Invoice amount : 1100 |
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Contract with a duration of three years, with annual invoice for the paid term. The contract is to be re-evaluated once a year by pre-re-evaluation :
1st March 2004 | 1st March 2005 | 1st March 2006 | 1st March 2007 |
Annual basis : 1000 | Annual basis : 1000 | Annual basis : 1100 | Annual basis : 1200 |
Next invoice amount : 1000 | Next invoice amount : 1000 | Next invoice amount : ??? | Next invoice amount : ??? |
Index 1000 | Index 1100 | Index 1200 | Index 1300 |
Creation of the contract |
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| Invoice amount : 1000 | Invoice amount : 1100 | Invoice amount : 1200 |
Contract with a duration of three years, with annual invoice for the paid term. The contract is to be re-evaluated once a year by post-re-evaluation :
1st March 2004 | 1st March 2005 | 1st March 2006 | 1st March 2007 |
Annual basis : 1000 | Annual basis : 1000 | Annual basis : 1000 | Annual basis : 1100 |
Next invoice amount : 1000 | Next invoice amount : 1000 | Next invoice amount : 1000 | Next invoice amount : 1100 |
Index 1000 | Index 1100 | Index 1200 | Index 1300 |
Creation of the contract |
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| Invoice amount : 1000 | Invoice amount : 1000 | Invoice amount : 1100 |
Re-evaluation support
There are two types of re-evaluation support :
- Evolution of an index:This value is used to proceed by comparisons of the indexes on given dates. It is therefore possible to choose an index that will serve as the database for the periodic fluctuations to be applied to the annual fee basis of a contract.
- Mathematical support :This value is used to proceed by means of calculations or mathematical formulas. This type of support is used to manage all the re-evaluation methods because each formula gives an entry point where the application field is potentially unlimited.
Index
This field is only accessible for a re-evaluation support of the type Evolution of the index. It is used to declare the index used during the comparison of the values on a date, from amongst those in miscellaneous table 410 : Indexation basis. The evolution of the values of the different indexes can be recorded in the Index evolution function.
Formula
This field is only accessible for a re-evaluation support of the type Mathematical support. This field is used to declare the mathematical formula to be used, from amongst those in miscellaneous table 427 : Re-evaluation formulas. The execution of these calculation formulas is carried out by means of the entry point RVACON_ followed by the formula code. For example, the entry point RVACON_ A1 launches the calculation of the simple formula A1.
Notice of termination
As a function of the activity sectors, this field can have the following meanings :
- The number of days preceding the end of the contract before which a customer termination request can be accepted.
- The number of days during which the contract continues to be applied after receipt of a customer termination.
In all cases, the termination is a manual operation that must be carried out directly in a contract record.
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Fields
The following fields are present on this tab :
Renewal
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This field represents the contract duration. For the contracts with tacit renewal, this is the frequency on which the contract will be automatically renewed. For the contracts that have no tacit renewal agreement, it is the frequency on which the contract should be renegotiated by the two parties. |
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This field specifics whether the contract will be subject to an automatic renewal at the end of its term. Essentially this signifies that there will be no gap in the invoicing chain that will continue to be executed at the desired frequency. If this is not the case, the contract will be the object of a renegotiation and a manual renewal in the function provided for this |
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This field concerns only contracts with points. It is used to define the total number of points given to the customer for the contract. |
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This field is used to indicate the minimum number of tokens that allows a customer to be offered this service contract. This information is analyzed by the system only if no equivalent information has been entered for the customer in question. Remember, the tokens are the bonus that each customer can be credited on the occasion of their successive orders. |
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This information involves only contracts with points. It offers a mechanism that is used to consume the contracts with points In fact, with regard to the potential complexity of the rules for the debiting of points, the probability of consuming exactly the number of points allowed in the contract is very low. Taking as an example benefiting from a contract of 100 points with a debit rule of 30 points by service request. The fourth call by this customer will close by issuing a quote related to the subscription to a new contract when at the same time the customer still benefits from a contract of 10 points. If this same contract benefits from a points tolerance of 20%, the fourth call will normally be honored and the contract will automatically be closed at the end of the service request process. |
Revaluation
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This field is used to enter the frequency on which the annual charge basis of the contract must be re-evaluated. The automatic re-evaluation can always be carried out on the basis of the evolution of a chosen index. |
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The maintenance contracts can be re-evaluated in two different fashions. 1 - The Post-re-evaluation presents the advantage of always calculating the amount of the next open item in a contract. However, the basis of the annual fee basis is always moved by a period with respect to the actual value of the support index for this re-evaluation. 2 - The Pre-re-evaluation offers the advantage of calculating the annual fee that is the exact reflection of the development of the index used. However, apart from the first open item in the contract, this method does not make it possible to know the amount of the open items in advance. |
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The re-evaluations can be calculated by using one of the two supports : 1 - It is possible to choose an index that will serve as a basis of the periodic fluctuations to be applied to the annual fee basis for a contract. 2 - The use of a Mathematic formula option is used to manage all the other re-evaluation methods. In fact, each formula provides an entry point where the application field is potentially unlimited. |
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This field is used to enter the index that should be used at each re-evaluation of the contract. A re-evaluation is realized by comparing the index value used during the last re-evaluation and the last value saved in the system for this index. |
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This field is used to select the entry point that will be used for the contract re-evaluation calculation. If the selected formula contains the code A1, the entry point will be : RVACON_A1. This entry point is called from the TRTCRMPE process. |
Termination
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As a function of the activity sectors, this field can have the following meanings : 1/ The number of days preceding the end of the contract before which a customer termination request can be accepted. 2/ The number of days during which the contract continues to be applied after receipt of a customer termination. In all cases, the termination is a manual operation that must be carried out directly in a contract record. |
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Tab Invoice elements
Presentation
Invoicing frequency
This field indicates the frequency on which the customer will receive the invoices related to the receipt of services covered by their contract.
Invoicing method
There are two methods of invoicing :
- Pre-invoicing or Term to be paid : The contract invoicing takes place before the end of the contract. In fact, the pre-invoicing can be used to invoice the contracts before the customer has any benefit.
Example of a contract with a duration of three years, invoiceable once a year, with the invoicing method being pre-invoicing or in terms of being payable :
1st March 2004 | 1st March 2005 | 1st March 2006 | 1st March 2007 |
Contract creation and invoicing | Invoicing | Invoicing | Invoicing |
Due date no.1 | Due date no.2 | Due date no.3 |
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- Post-invoicing or Term paid : The contract invoicing takes place at the end of the contact term. In fact, the post-invoicing is used to invoice the contracts after the customer has benefited from them.
Example of a contract with a duration of three years, invoiceable once a year, with the invoicing method post-invoicing or in terms of being payable :
1st March 2004 | 1st March 2005 | 1st March 2006 | 1st March 2007 |
Contract creation and invoicing | Invoicing | Invoicing | Invoicing |
| Due date no.1 | Due date no.2 | Due date no.3 |
Increase/decrease coefficient
Certain operations increase or decrease the open item amount when they are applied over the long term. This field is used to define the size of this increase or decrease should it be required.
Notice of invoicing
This field is used to define the notice from which a contract open item to be invoice will appear in the invoicing tools. From this moment, the invoice will be generated and sent to the customer.
The notice represents the number of days that precede the term for an invoicing open item.
Payment conditions
This field is used to enter the assigned payment conditions for the payment of the contract open items.
The list of the different dispute codes available must be described in the miscellaneous table no.315 : Accepted disputes.
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Fields
The following fields are present on this tab :
Invoicing
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This field indicates the frequency on which the customer will receive the invoices related to the receipt of services covered by their contract. This field is also used to determine what part of the annual charge is to be posted to the invoice. |
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The management of the service contracts allows two different invoicing methods. 1 - Pre-invoicing makes it possible to invoice the contracts before the customer has had any benefit. 2 - Post-invoicing is used to invoice the contracts after the customer has benefited from it. |
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Certain operations increase the open item amount when they are applied over the long term. The coefficient field is used to define the size of this increase or decrease should it be required. |
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This field is used to define the notice from which a contract open item to be invoice will appear in the invoicing tools. From this moment, the invoice will be generated and sent to the customer. The notice represents the number of days that precede the term for an invoicing open item. |
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This field is used to enter the assigned payment conditions for the payment of the contract open items. |
Grid Litigations
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This field is used to enter the dispute codes that trigger the management of a customer problem if the payment has not been done on time in respect to the contract due dates. For instance, a customer's payment is two month late in respect to the contract due date. Moreover, this customer has declare a dispute with their supplier. When the customer call the customer support in order to solve a problem on one of the materials, the customer will benefit from the service if the dispute code of the due date corresponds to one of the codes mentioned on the maintenance contract. |
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Menu Bar
Menu Bar
Functions / Covered base
This function is only accessible if the field All the installed base is not ticked.
The top part of the window is used to enter a list of product references or commercial groups that are used to identify the covered installed base.
The lower part of the screen is used to exclude or include the components that can not be determined in the first screen, by means of entering exceptions. It is possible to only exclude a single component for a product reference entered in the upper part of the window.
MENU Functions / Skills Covered
This function is only accessible of the All skills field for the service contract template record is not ticked.
This function is used to enter all the skills group levels required by the contract.
The term level indicates that all the lower levels of the skills group are taken into account if this latter is included in the covered skills. In fact, if the totality of the generic groups have been entered in this function the result will be equivalent to that obtained by ticking the field All skills.
Reminder: Once a skill is entered in a service request, the system searches for at least one contract ascribed to the customer, for the machine, for the skills group enterer of for one of the parent groups.
Functions / Quality Constraints
The quality constraints directly influence the resolution lead-times for the service requests as a function of the urgency level expressed by the customer.
Blocking and non blocking character of customer problems
A non blocking problem in general represents a nuisance for a user of the equipment or the system. But not withstanding the problem, the function requested by the system can globally be corrected with satisfaction.
A blocking problem makes it impossible to carryout critical work within the enterprise (for example, the entry of customer orders).
Intervention on site /During
The Intervention on siteindicates if the contract expected planned to take into account any visits to the customer site without additional charges. The During field indicates the duration during which the contract expects this service is to be counted at each start of the contract renewal.
Maximum intervention lead-time
In the case where the contract plans for visits to the customer site, this field indicated the maximum lead-time within which an engineer must be present to start the corrective work.
Maximum resolution lead-time
This field indicates the maximum lead-time within which the customer system must be returned to a correctly functioning system.
Penalty amounts
In the case where, at the end of the resolution lead-time, the customer system is still not operational, this field indicate the penalty amounts which the customer can pick up due to their contract.
These penalties can be either paid directly to the customer or be the object of credit memos etc.
Other constraints
This field is used to save the constraints specific to certain contract types. These are all the constraints that come from the defined in the previous fields (for example, the engineers must where white shirts when visiting the customer sites).